U.S. Stocks 

Fundamental Analysis: 

The S&P 500 and Nasdaq closed sharply higher on Wednesday, 1st February 2023, after the Federal Reserve raised interest rates by 25 basis points and Chairman Jerome Powell later acknowledged that inflation was beginning to slow.

Major stock indexes on Wall Street fell in response after the Fed announced its decision to raise interest rates. The interest rate statement also said that “continued rate increases” would be appropriate.

But shortly after Powell began speaking to reporters, the major stock indexes rebounded from their lows and kept rising, with the S&P closing up 1% and the Nasdaq up 2%.

Of the 11 major industry sectors in the S&P 500, only the energy sector closed lower, down 1.9%, while the rate-sensitive technology sector gained the most, rising 2.3%.

The market is mainly concerned about the path of the Federal Reserve going forward. This is because the size of the rate hike at the first policy meeting of the year was in line with expectations, following the Fed’s rapid rate hikes in 2022, including a 50 basis point hike in December.

Recent data suggest inflation is easing, and the Fed is also keeping an eye on data that will determine labor market resilience and wage growth rates.

But data showed that U.S. job openings unexpectedly increased in December ahead of the Labor Department’s comprehensive report on January nonfarm payrolls on Friday.

Another piece of economic data showed that U.S. manufacturing contracted further in January as rising interest rates dampened demand for goods.

All three major stock indexes started the year strongly, with the S&P 500 and Dow recording their first January gains since 2019, as investors returned to markets that were hit hard by the Federal Reserve’s hawkish policies the previous year.

Technical Analysis:

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow today pays attention to the 34221-line. If the Dow runs stably above the 34221-line, then pay attention to the suppression strength of the 34477 and 34724 positions.

Hong Kong Stocks 

Fundamental Analysis: 

The Federal Reserve raised interest rates by 25 basis points as expected, and U.S. stocks pulled up overnight.

Driven Hong Kong stocks opened higher, the Hang Seng Index (HSI) rose 0.92%, the Hang Seng China Enterprises Index (HSCEI) rose 1.04%, the Hang Seng TECH Index (HSTECH) rose 1.44%.

On the market, Chinese technology stocks rose significantly, Baidu, Inc. (9888.HK) rose 5.68%%, Tencent Holdings Limited (0700.HK), Alibaba Group Holding Limited (9988.HK), Kuaishou Technology (1024.HK), Meituan (3690.HK), JD.com, Inc. (9618.HK) are up more than 1%.

The registration-based IPO system started, and Chinese securities stocks rose across the board, leading China International Capital Corporation Limited (3908.HK), and CITIC Securities Company Limited (6030.HK) up more than 3%.

Auto stocks continued yesterday’s rise, Apple concept stocks, Tesla concept stocks, sporting goods stocks are popular.

On the other hand, wind power stocks continue to fall, China Longyuan Power Group Corporation Limited (0916.HK) opened 2.44% lower to record 5 consecutive losses, while e-cigarette concept stocks, and gas stocks were lower.

Technical Analysis: 

(HK50, 1-hour chart) 

Execution Insight: 

HK50 pays attention to the 22127-line today. If HK50 can run stably above the 22127-line, then pay attention to the suppression strength of the two positions of 22785 and 23294.

FTSE China A50 Index 

Technical Analysis: 

(FTSE China A50, 1-hour chart) 

Execution Insight: 

FTSE China A50 pays attention to the 14371-line today. If A50 can run stably above the 14371-line, then pay attention to the suppression strength of the 14695 and 14985 positions.

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