U.S. Stocks 

Fundamental Analysis: 

The S&P 500 index of U.S. stocks closed slightly lower on Thursday, 14th July 2022, after investors digested disappointing quarterly results from two major U.S. banks and hotter-than-expected inflation data.

Early in the session, all three major U.S. stock indexes sold off sharply after the second-quarter earnings reports from JPMorgan Chase and Morgan Stanley. Both banks reported declining profits and warned of an impending economic slowdown.

As trading unfolded, losses narrowed and chip stocks advanced, helping to support the Nasdaq to close slightly higher.

The Labor Department’s Producer Price Index (PPI) report echoed Wednesday’s Consumer Price Index (CPI) data, showing hotter-than-expected inflation in June, fueling fears of an economic slowdown.

The sell-off began to slow after Fed Governor Waller said he supported another 75 basis point rate hike in July, easing jitters about a larger 100 basis point hike.

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: 

U.S. aggressive rate hikes cooled down, and U.S. stocks made a V-shaped reversal overnight. Hong Kong stocks opened lower, the Hang Seng Index (HSI) fell 1.1%, the Hang Seng China Enterprises Index (HSCEI) fell 1.16%, the Hang Seng TECH Index (HSTECH) fell 1.75%.

On the market, large technology stocks fell collectively, Alibaba Group Holding Limited (9988.HK) fell 5.7%, Baidu, Inc. (9888.HK) fell 3%, Kuaishou Technology (1024.HK), Tencent Holdings Limited (0700.HK), Meituan (3690.HK) are down more than 1%.

Incomplete housing loans are on the rise, domestic banking stocks and domestic housing stocks to continue the decline, cell phone concept stocks, gas stocks, insurance stocks, shipping stocks are lower.

On the other hand, most biotechnology stocks rose, restaurant stocks rose individually, and some of the auto stocks that plunged yesterday rebounded, with BYD Company Limited (1211.HK) shares opening 4.6% higher.

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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