U.S. stocks closed sharply higher Monday, 7th November 2022, as investors focused on Tuesday’s midterm elections that will decide control of Congress.
With this, shares of Facebook parent Meta Platforms surged on news of layoffs earlier.
Republicans are tipped to win a majority in the House of Representatives in the election, with nonpartisan forecasters saying the Senate is unpredictable.
Republicans could use a majority in either House or Senate to thwart the agenda of Democratic President Joe Biden.
Recently battered Microsoft and Google parent Alphabet both rose more than 2%, contributing significantly to the S&P 500’s gains on the day.
The focus this week will be on the U.S. Consumer Price Index (CPI) for October, scheduled for Thursday, to find clues from it on how much the Fed’s rapid rate hikes are helping to cool the economy.
The Fed’s four policymakers said on Friday they will consider a modest rate hike at their next policy meeting, despite new data showing job growth remained strong last month and only modest progress in reducing inflation.
Eight of the 11 major S&P 500 sectors closed higher, led by communications services stocks, up 1.83%, and energy stocks, up 1.73%.
So far this year, all three major U.S. stock indexes have fallen, with the technology-dominated Nasdaq index falling 33%, and there are concerns that the Fed’s aggressive tightening of monetary policy could weaken the U.S. economy.
(Dow 30, 1-hour chart)
The Dow is focused on the 32975-line today. If the Dow runs steadily above the 32975-line, then it will pay attention to the suppression strength of the two positions of 33233 and 33584. If the Dow is running steadily below the 32975-line, it will pay attention to the support strength of the two positions of 32363 and 31863.
Hong Kong Stocks
Overnight, U.S. stocks three major indices collectively closed up, the main index of Hong Kong stocks opened higher this morning.
The Hang Seng Index (HSI) rose 0.27%, at 16640.6 points, the Hang Seng TECH Index (HSTECH) rose 0.07%, at 3399.08 points, and the Hang Seng China Enterprises Index (HSCEI) rose 0.19%, at 5647.01 points.
On the market, large technology stocks were mixed, Kuaishou Technology (1024.HK), Xiaomi Corporation (1810.HK), Meituan (3690.HK) rose slightly, and Alibaba Group Holding Limited (9988.HK) fell 1.36%.
Yesterday’s sharp rise in domestic housing stocks and property management stocks continued to rise, Agile Group Holdings Limited (3383.HK), CIFI Holdings (Group) Co. Ltd. (0884.HK) were up more than 3%.
Most of the photovoltaic stocks, beer stocks, power stocks and domestic insurance stocks moved higher.
On the other hand, new energy auto stocks were generally lower, with NIO Inc. (9866.HK) down 5.7% and retail stocks and coal stocks down significantly.
When overseas liquidity is expected to improve, Hong Kong stocks will rebound more than A-shares.
In a relative perspective, when economic expectations are revised upward due to policy changes, it means the dawn of the oversold Hong Kong stocks, and the rebound may exceed the performance of A-shares in the same period.
Specifically, the Hong Kong stocks in the more capital-sensitive technology, biopharmaceuticals, semiconductors, new energy vehicles and other sectors.
(HK50, 1-hour chart)
HK50 focuses on the 15995-line today. If HK50 can run stably above the 15995-line, then focus on the suppression strength of the 16964 and 17535 positions. If the HK50 runs below the 15995-line, then pay attention to the support strength of the 15136 and 14309 positions.
FTSE China A50 Index
(FTSE China A50, 1-hour chart)
FTSE China A50 pays attention to the 11665-line today. If the A50 runs steadily below the 11665-line, pay attention to the support strength of the two positions of 11447 and 11220. If the A50 runs above the 11665-line, it will open up further upward space. At that time, pay attention to the two positions of 12336 and 12659.
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