U.S. Stocks 

Fundamental Analysis: 

U.S. stocks ended lower on Monday, 1st August 2022, in a choppy session, with Exxon Mobil and other energy stocks lower, while Boeing rose, as investors digested the biggest monthly gain in U.S. stocks in two years in July.

Stocks gave back some of the strong gains recorded last week, after jumping on bets that the Federal Reserve may not need to raise interest rates as aggressively as some feared.

The S&P 500 and Nasdaq recorded their biggest monthly percentage gains in July since 2020, also helped by stronger-than-expected corporate second-quarter results.

The S&P 500 traded in a flat session on Monday, with some investors becoming more cautious after the recent rally.

The Federal Reserve said it aims to curb inflation and reduce demand by raising interest rates, but markets are concerned that the Fed’s aggressive moves could push up the unemployment rate and weaken the economy.

Data released on Monday showed that U.S. manufacturing activity slowed less than expected in July, with signs that supply constraints are easing.

Also, multiple surveys out earlier showed manufacturing in Asia and Europe lost momentum in July, as production slowed due to weak global demand and China’s strict coronavirus lockdown.

Demand concerns dragged oil prices lower, which in turn weighed on the energy sector. The S&P 500 energy stocks index plunged, falling the most among 11 sectors. Exxon Mobil fell 2.5%, one of the biggest drags on the S&P 500.

The market will carefully analyze the monthly U.S. jobs report to be released on Friday to find clues about what the Fed will do next to deal with inflation, which is at a multi-decade high.

Technical Analysis: 

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow is focused on the 32975-line today. If the Dow runs steadily above the 32975-line, it will pay attention to the suppression strength of the 33233 and 33390 positions. If the Dow runs steadily below the 32975-line, it will pay attention to the support strength of the 32455 and 32083 positions.

Hong Kong Stocks 

Fundamental Analysis: 

Due to geopolitical tensions, U.S. stocks closed lower overnight, and Chinese stocks generally fell.

Hong Kong stocks opened lower across the board, with the Hang Seng Index (HSI) down 1.1% to lose the 20,000-point mark, the Hang Seng China Enterprises Index (HSCEI) down 1.37%, and the Hang Seng TECH Index (HSTECH) down 1.9%.

On the market, large technology stocks fell in general, Baidu, Inc. (9888.HK) fell more than 3%, Xiaomi Corporation (1810.HK), Meituan (3690.HK), Kuaishou Technology (1024.HK) fell nearly 3%.

Yesterday’s big rise in auto stocks fell collectively, led by Great Wall Motor Company Limited (2333.HK).

Domestic housing stocks and property management stocks continued to weaken, Country Garden Services Holdings Company Limited (6098.HK) fell 5% to lead the decline in blue chips.

F&B stocks, biomedical stocks, oil stocks, cell phone concept stocks fall.

On the other hand, military stocks moved higher, with HK – CSSC Offshore & Marine Engineering (Group) Company Limited up about 4% and most drug stocks rose.

Education stocks were the top decliners, with New Oriental Education & Technology Group Inc. (9901.HK) down 6%.

Technical Analysis: 

(HK50, 1-hour chart) 

Execution Insight: 

HK50 focuses on the 20467-line today. If HK50 can run stably above the 20467-line, then pay attention to the suppression strength of 21450 and 22127. If HK50 runs below the 20467-line, then pay attention to the support strength of 19517 and 18606.

FTSE China A50 Index 

Technical Analysis: 

(FTSE China A50, 1-hour chart) 

Execution Insight: 

FTSE China A50 focuses on the 13887-line today. If the A50 runs stably below the 13887-line, pay attention to the support strength of the two positions of 13544 and 13157. If the A50 runs above the 13887-line, it will open up further upward space. At that time, pay attention to the two positions of 14371 and 14695.

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