U.S. Stocks 

Fundamental Analysis: 

U.S. stocks closed sharply higher on Friday, 15th July 2022, ending the sell-off of the previous few days with a strong rally, helped by upbeat corporate earnings, strong economic data and easing concerns about a larger-than-expected rate hike by the Federal Reserve.

All three major stock indexes rose sharply, led by financial stocks, after Citigroup reported earnings that beat expectations. Financial stocks sold off last Thursday, weighed down by gloomy earnings reports from JPMorgan Chase and Morgan Stanley.

The S&P 500 and the Dow Jones Industrial Average ended their previous five-day losing streak. However, all three major stock indexes fell on a weekly basis.

Consumer prices rose in June at the biggest year-over-year rate since 1981, raising the possibility that the Federal Reserve may raise its key federal funds target rate by 100 basis points, compared with previous expectations of a 75 basis point hike.

Speeches by Fed officials last Thursday and on Friday calmed those concerns. Fed officials hinted on Friday that they may stick with a 75 basis point rate hike at their July 26-27 meeting, but recent high inflation readings suggest a deeper rate hike may be needed later this year.

U.S. economic data released on Friday was surprisingly good. Retail sales were stronger than expected, consumer sentiment improved, inflation expectations fell, and import prices cooled.

Technical Analysis: 

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow is concerned about the 31000-line today. If the Dow is running steadily above the 31000-line, then it will pay attention to the suppression strength of the two positions of 31291 and 31661.

Hong Kong Stocks 

Fundamental Analysis: 

Hong Kong stocks opened slightly higher, with the Hang Seng Index (HSI) opening up 0.9% and the Hang Seng TECH Index (HSTECH) up 0.33%.

However, shortly after the opening, the HSI once turned down, the Hang Seng Technology Index fell by more than 1%. Near the close of noon, Hong Kong stocks rebounded strongly again, the HSI and Hang Seng Technology Index are now up more than 2%.

The real estate and property management sector led the rise. Guangzhou R&F Properties Co., Ltd. (2777.HK) rose nearly 11%, KWG Group Holdings Limited (1813.HK) rose nearly 10%, Seazen Group Limited (1030.HK) rose more than 8%, Agile Group Holdings Limited (3383.HK) rose more than 6%, Longfor Group Holdings Limited (0960.HK) rose more than 5%, China Jinmao Holdings Group Limited (0817.HK) rose nearly 5%.

In addition, technology stocks continued to rise in early trading, Meituan (3690.HK), Bilibili Inc. (9626.HK), GDS Holdings Limited (9698.HK) rose more than 6%, JD.com, Inc. (9618.HK), Xiaomi Corporation (1810.HK), Kuaishou Technology (1024.HK) rose more than 3%, Baidu, Inc. (9888.HK) rose more than 2%, Alibaba Group Holding Limited (9988.HK), and Tencent Holdings Limited (0700.HK) rose more than 1%.

Non-ferrous metals sector strengthened, China non-ferrous mining rose 4.5%, China Hongqiao Group Limited (1378.HK), Zijin Mining Group Company Limited (2899.HK), Aluminum Corporation of China Limited (2600.HK) rose more than 4%, Shandong Gold Mining Co., Ltd. (1787.HK) rose nearly 4%, China Gold International Resources Corp. Ltd. (2099.HK) rose more than 3%.

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 14352-line today. If the A50 runs stably below the 14352-line, it will pay attention to the support strength of the two positions of 13970 and 13544. If the A50 runs above the 14352-line, it will open up further upward space. At that time, pay attention to the two positions of 14695 and 14985.

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