U.S. Stocks 

Fundamental Analysis: 

U.S. stocks closed lower on Friday, 2nd September 2022, after rising earlier in the session as a U.S. jobs report showed the labor market may be starting to loosen, but then concerns about Europe’s gas crisis caused the rally to reverse.

U.S. stocks opened sharply higher after data showed that U.S. jobs rose more strongly than expected in August, but the unemployment rate climbed to 3.7%, easing some concerns that the Federal Reserve is being overly aggressive in raising interest rates as it tries to curb high inflation.

The report showed that while job gains were higher than expected, average hourly earnings rose only 0.3%, compared with an expected 0.4% gain, while the unemployment rate rose to 3.7% from a pre-epidemic low of 3.5%, indicating that the Fed’s front-end efforts to raise interest rates are starting to work. 

Employment data is considered important to the Fed’s consideration of rate hikes as it tries to get inflation, which is at a 40-year high, to pull back to its 2% target.

Attention now turns to the August consumer price report, due out in the middle of this month, which is the last major data to come out before the Fed’s 20th – 21st September policy meeting.

Stocks fell in mid-August after hitting a four-month high on concerns about aggressive policy tightening.

The S&P 500 has fallen about 7% since the day before Fed Chairman Jerome Powell made a hawkish statement about rate hikes last week. His views have since been echoed by other policymakers.

Technical Analysis:

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow is focused on the 31265-line today. If the Dow runs steadily above the 31265-line, then it will pay attention to the suppression strength of the two positions of 31661 and 31995. If the Dow is running steadily below the 31265-line, it will pay attention to the support strength of the two positions of 31000 and 30608.

Hong Kong Stocks 

Fundamental Analysis: 

Hong Kong stocks fell across all three major indices in the morning session as market sentiment remained sluggish.

The Hang Seng Index (HSI) fell 1.28%, the Hang Seng China Enterprises Index (HSCEI) fell 1.47% and the Hang Seng TECH Index (HSTECH) fell 2%.

The half-day net southbound capital inflow was HK$2.691 billion, and the market turnover was HK$59.8 billion.

On the market, large technology stocks continue to fall, JD.com, Inc. (9618.HK), Tencent Holdings Limited (0700.HK) fell more than 3%, Xiaomi Corporation (1810.HK), and Alibaba Group Holding Limited (9988.HK) fell more than 2%. Baidu, Inc. (9888.HK), Meituan (3690.HK), Kuaishou Technology (1024.HK), etc. are down more than 1%.

The recent continuous rise in online education stocks retraced, Koolearn Technology Holding Limited (1797.HK) opened high and closed low, down more than 13% of the worst performance.

BYD Company Limited (1211.HK) by Warren Buffett continued to reduce holdings + market concerns about the auto chip “restricted “, auto stocks continue to fall, handicap stocks, gambling stocks, biotechnology stocks, home appliances stocks, aviation stocks and other general decline. 

On the other hand, the European energy crisis intensified again, thermal coal futures soared 7%, coal stocks, oil and gas and other energy stocks rose against the trend, Yankuang Energy Group Company Limited (1171.HK), and China Coal Energy Company Limited (1898.HK) led the way higher.

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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