U.S. Stocks 

Fundamental Analysis: 

U.S. stocks closed lower on Tuesday on 20th September 2022, as more evidence of inflation hitting U.S. corporate earnings emerged ahead of the Federal Reserve’s interest rate decision announcement.

The benchmark S&P 500 index has fallen 19.1% so far this year, as investors worry that aggressive Fed tightening could send the U.S. economy into recession.

Last week’s scenario of FedEx releasing dismal earnings estimates was repeated, this time by automaker Ford.

Ford slumped 12.3%, its biggest one-day drop since 2011, after the company said inflation would bring $1 billion in additional costs, more than expected, and that deliveries of some vehicles were pushed into the fourth quarter because of parts shortages.

Ford’s rival, General Motors fell 5.6%.

The Commerce Department reported on Tuesday that home building permits plunged 10.0% in August to an annual rate of 1.517 million units, the lowest level since June 2020. This is one of the more forward-looking housing market indicators.

The yield on the U.S. 10-year indicator Treasury touched its highest since April 2011 at 3.56%, further inverting the closely watched two-year/10-year Treasury yield spread.

All 11 major sectors of the S&P 500 fell, with economically sensitive real estate stocks and materials stocks falling the most, down 2.6% and 1.9%, respectively.

Nike fell 4.5%.

Technical Analysis:

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow focuses on the 30495-line today. If the Dow runs steadily above the 30495-line, it will pay attention to the suppression strength of the two positions of 31000 and 31265. If the Dow runs steadily below the 30495-line, it will pay attention to the support strength of the two positions of 30083 and 29767.

Hong Kong Stocks 

Fundamental Analysis: 

Overnight, U.S. stocks fell again to a two-month low.

Hong Kong stocks, which rebounded yesterday, opened lower, with the Hang Seng Index (HSI) down 0.76%, the Hang Seng China Enterprises Index (HSCEI) down 0.76%, and the Hang Seng TECH Index (HSTECH) down 1.01%.

On the market, large technology stocks fell, Alibaba Group Holding Limited (9988.HK) fell 2.44%, Baidu Inc. (9888.HK), NetEase Inc. (9999.HK), Bilibili Inc. (9626.HK) 2.69%, Meituan (3690.HK), Kuaishou Technology (1024.HK), Tencent Holdings Limited (0700.HK) are lower.

Yesterday’s big gains in the trend of gambling stocks diverged, beer stocks, domestic insurance stocks, gas stocks, most of the home appliance stocks fell.

On the other hand, biopharmaceutical stocks B class stocks rose significantly, domestic housing stocks individually higher, Hopson Development Holdings Limited (0754.HK) rose more than 8%,

Film and entertainment stocks, restaurant stocks were part of the rise; Haidilao International Holding Ltd. (6862.HK) about 1%.

Tencent Music, listed by way of introduction on the Hong Kong Stock Exchange, opened flat.

Technical Analysis: 

(HK50, 1-hour chart) 

Execution Insight: 

HK50 focuses on the 19517-line today. If HK50 can run stably above the 19517-line, it will pay attention to the suppression strength of the 20467 and 21450 positions. If the HK50 runs below the 19517-line, it will pay attention to the support strength of the 18606 and 17535 positions.

FTSE China A50 Index 

Technical Analysis: 

(FTSE China A50, 1-hour chart) 

Execution Insight: 

FTSE China A50 focuses on the 13157-line today. If the A50 runs steadily below the 13157-line, it will pay attention to the support strength of the two positions of 12945 and 12733. If the A50 runs above the 13157-line, it will open up further upward space. At that time, pay attention to the two positions of 13544 and 13887.

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