From export bans to price controls, governments in Asia are taking a much more targeted approach than their Western counterparts in curbing global inflationary pressure, a strategy that appears to be working at least for now.
U.S. stocks closed sharply higher on Wednesday, 4th May 2022, with the Federal Reserve announcing a 50 basis point rate hike as widely expected, and the S&P 500 recording its largest one-day percentage gain in nearly two years.
After the Fed’s statement, the stock market fluctuated first, then strengthened. The S&P 500 rose nearly 3%, the largest gain since 18th May 2020.
It is clear that the Fed understands the need to curb the price spike, and even if the Fed increases interest rate hikes, it still needs to deal with geopolitical tensions, the ongoing problem of the Covid-19 concerns, and corporate performance.
So, despite the Fed’s actions, one should watch for more volatility ahead.
As of Wednesday’s close, the Dow Jones Industrial Average rose 932.27 points, or 2.81%, to 34,061.06 points, the S&P 500 jumped 124.69 points, or 2.99%, to 4,300.17 points, and the Nasdaq jumped 401.10 points, or 3.19%, to 12,964.86 points.
(Dow 30, 1-hour chart)
The Dow focuses on the 33390-line today. If the Dow runs stably above the 33390-line, it will pay attention to the suppression strength of the 34088 and 34477 positions. If the Dow falls below the 33390-line, it will pay attention to the support strength of the 32975 and 32781 positions.
Hong Kong Stocks
Yesterday, Hong Kong stocks fell unilaterally in the morning session, and then fluctuated at a low level in the afternoon.
By the close of trading, the Hang Seng Index (HSI) fell 1.10%, losing 21,000 points, the Hang Seng China Enterprises Index (HSCEI) fell 1.78%; the Hang Seng TECH Index (HSTECH) fell 3.29%.
On the market, the banking and capital goods sectors rose. China Railway, China Communications Construction rose more than 3%, while Healthcare, retail, software services, consumer goods, and semiconductor sectors fell.
Among popular technology stocks, JD Health International Inc. (6618.HK) fell nearly 13%, Alibaba Health Information Technology Limited (0241.HK) fell 7.48%, Bilibili Inc. (9626.HK) and Kuaishou Technology (1024.HK) fell more than 5%, and Meituan (3690.HK) fell over 4%.
On the news, according to the equity information disclosed by the HKEX, Shen Nanpeng, an independent non-executive director of Meituan and founding managing partner of Sequoia Capital, sold a total of 42.9572 million shares of Meituan on 27th and 29th April, cashing out about HK$6.227 million, and his shareholding in Meituan dropped from 3.98% to 3.19%.
(HK50, 1-hour chart)
HK50 focuses on the 21450-line today. If HK50 can run stably below the 21450-line, then pay attention to the support strength of 20467 and 19517. If HK50 runs above the 21450-line, then pay attention to the suppression strength of 22127 and 22785.
FTSE China A50 Index
(FTSE China A50, 1-hour chart)
FTSE China A50 pays attention to the 13496-line today. If the A50 runs steadily below the 13496-line, pay attention to the support strength of the 13157 and 12733 positions. If the A50 runs above the 13496-line, it will open up further upward space. At that time, pay attention to the suppression of the 13983-line.
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