U.S. Stocks 

Fundamental Analysis: 

The U.S. stock market’s S&P 500 index moved shakily on Monday, 25th July 2022, closing near flat as the market braced for an expected rate hike at this week’s Federal Reserve meeting and earnings reports from several growth stock giants.

The Nasdaq closed lower, with technology and non-essential consumer goods stocks in the S&P 500 leading declines among the major sectors.

Energy stocks rose along with oil prices.

The Federal Reserve is expected to announce a 75 basis point rate hike at the end of its two-day monetary policy meeting on Wednesday, effectively withdrawing all support for the U.S. economy during the pandemic.

Fed Chairman Jerome Powell’s speech following the resolution announcement will be key, with some investors concerned that an aggressive rate hike could send the U.S. economy into recession.

This week is expected to be the busiest week of the second-quarter earnings season, with about 170 S&P 500 component companies about to report results.

Microsoft and Alphabet, Google’s parent company, will report earnings on Tuesday, while Apple and Amazon are scheduled to report earnings on Thursday.

Two housing market indicators will be released today, the S&P CoreLogic Case-Shiller U.S. National Home Price Index and new home sales data from the U.S. Department of Commerce.

The recently released housing market data suggests that the sector may be an early indicator of a cooling economy.

Technical Analysis: 

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow focuses on the 32083-line today. If the Dow runs steadily above the 32083-line, it will pay attention to the suppression strength of the two positions of 32455 and 32781. If the Dow runs steadily below the 32083-line, it will pay attention to the support strength of the two positions of 31661 and 31291.

Hong Kong Stocks 

Fundamental Analysis: 

U.S. stocks were mixed overnight. The three major Hong Kong stock indices opened higher, the Hang Seng Index (HSI) rose 0.55%, the Hang Seng China Enterprises Index (HSCEI) rose 0.46%, and the Hang Seng TECH Index (HSTECH) rose 0.54%.

On the market, most of the large technology stocks rose, and dual-primary listing, is expected to be included in the Hong Kong Stock Exchange. Alibaba Group Holding Limited (9988.HK) rose 3.4%, NetEase, Inc. (9999.HK), JD.com, Inc. (9618.HK), and Baidu, Inc. (9888.HK) are up.

Genuine Biotech limited reached a strategic cooperation, Shanghai Fosun Pharmaceutical (Group) Co., Ltd. (2196.HK) rose more than 6%, to leda biotechnology stocks higher.

Education stocks, beer stocks, F&B stocks, oil stocks, cell phone concept stocks rose generally.

On the other hand, dairy stocks continued to fall, home appliance stocks, gas stocks, and real estate stocks were partly lower.

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 focus on 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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