U.S. Stocks 

Fundamental Analysis: 

U.S. stocks closed lower on Wednesday, 15th July 2022, as investors digested higher-than-expected U.S. inflation data, a report that fueled concerns that the Federal Reserve could raise its key interest rate by as much as 100 basis points later this month.

All three major stock indexes closed lower, but all broke away from daily lows touched in early trading and occasionally rose above the previous close throughout the session.

U.S. consumer prices jumped 9.1% year-over-year in June, the biggest increase in more than 40 years, as the American people had to pay more for gasoline, food, health care and rent.

Gasoline prices jumped 11.2% in June after rising 4.1% in May. Excluding volatile food and energy, the core consumer price index (CPI) rose to 5.9% year-over-year.

Food and energy have fallen back from the beginning of the report survey period. This report raises the possibility of the Federal Reserve raising interest rates by more than 75 basis points.

According to the CME Group (CME) analysis of federal funds futures contracts, federal funds rate futures traders quickly expected that the likelihood of a 100 basis point rate hike at the July meeting has been as high as 70%.

Nine of the 11 major sectors of the S&P 500 fell, with industrial stocks and communications services stocks falling the most in percentage terms, while non-must consumer stocks rose the most.

Technical Analysis: 

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow focuses on the 31000-line today. If the Dow runs steadily above the 31000-line, it will pay attention to the suppression strength of the 31291 and 31661 positions. If the Dow runs steadily below the 31000-line, it will pay attention to the support strength of the 30608 and 30350 positions.

Hong Kong Stocks 

Fundamental Analysis: 

The three major indexes of Hong Kong stocks fluctuated higher in the morning, and technology stocks strengthened significantly, helping the Hang Seng TECH Index (HSTECH) to rise by 1.73%, to regain 4600 points, the Hang Seng Index (HSI) rose 0.24%, the Hang Seng China Enterprises Index (HSCEI) rose 0.23%.

The southbound capital inflow was HK$1.526 billion in half a day, and the market turnover was HK$54.9 billion.

On the market, large technology stocks, JD.com, Inc. (9618.HK) rose 3.6%, Meituan (3690.HK), Baidu, Inc. (9888.HK), Alibaba Group Holding Limited (9988.HK) were up more than 2%, Xiaomi Corporation (1810.HK) rose 1%. Apple began trial production of iPhone 14, Apple concept stocks performed better.

June new energy vehicle production and sales to a new high, auto stocks are now rising market. Biotechnology B class shares higher, lithium battery stocks, aviation stocks, gambling stocks, coal stocks rose generally.

On the other hand, the recent fermentation of the storm of bad buildings, banks and real estate all setback, power stocks, home appliances stocks, insurance stocks generally lower. Auto stocks rose in general, June new energy vehicle production and sales to a new high.

According to the China Association of Automobile Manufacturers public news, in the first half of the year, the production and sales of new energy vehicles were completed 2.661 million units and 2.6 million units, an increase of 1.2 times year-on-year, with a market share of 21.6%.

The production and sales of new energy vehicles hit a record high, and the industry boom is high. The future trend of new energy vehicles to replace traditional fuel cars, compared to traditional cars, new energy vehicles single vehicle value of the largest incremental link for the power battery.

Technical Analysis: 

(HK50, 1-hour chart) 

Execution Insight: 

HK50 focuses on the 21450-line today. If HK50 can run stably above the 21450-line, then pay attention to the suppression strength of 22127 and 22785. If HK50 runs below the 21450-line, then pay attention to the support strength of 20467 and 19517.

FTSE China A50 Index 

Technical Analysis: 

(FTSE China A50, 1-hour chart) 

Execution Insight: 

FTSE China A50 focuses on the 14695-line today. If the A50 runs stably below the 14695-line, it will pay attention to the support strength of the two positions of 14352 and 13970. If the A50 runs above the 14695-line, it will open up further upward space. At that time, pay attention to the two positions of 14985 and 15184.

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