U.S. Stocks 

Fundamental Analysis: 

U.S. stocks rallied on Wednesday, 27th July 2022 with the Nasdaq posting its biggest one-day percentage gain since April 2020, as the Federal Reserve raised interest rates as expected and investors were reassured by Fed Chairman Jerome Powell’s comments.

In addition, upbeat quarterly reports from Microsoft and Alphabet brought further optimism for the earnings season.

The S&P 500 closed at its highest level since 8th June. The Federal Reserve raised its index overnight rate by 75 basis points.

The move comes on top of a 75 basis point rate hike in June and smaller rate hikes in May and March to allow inflation to cool.

Powell said at a news conference after announcing the rate decision that he does not believe the U.S. economy is currently in recession, but the economy is softening.

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: 

The Federal Reserve raised interest rates by 75 basis points as expected, and U.S. stocks closed sharply higher overnight.

Hong Kong stocks opened higher, the Hang Seng Index (HSI) rose 0.17%, the Hang Seng China Enterprises Index (HSCEI) rose 0.2%, the Hang Seng TECH Index (HSTECH) rose 0.47%.

On the market, most of the large technology stocks rose, Tencent Holdings Limited (0700.HK) rose 1.37%, Xiaomi Corporation (1810.HK), Kuaishou Technology (1024.HK), Meituan (3690.HK) slightly higher, NetEase, Inc. (9999.HK), Alibaba Group Holding Limited (9988.HK) slightly lower.

Education stocks opened higher across the board, New Oriental Education & Technology Group Inc. (9901.HK), Koolearn Technology Holding Limited (1797.HK) rose 5%.

Yesterday’s big drop in domestic housing stocks and property management stocks rebounded significantly, while sporting goods stocks, dairy products stocks, biotechnology stocks rose generally.

On the other hand, most Hong Kong real estate stocks, insurance stocks and banking stocks fell.

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 13887-line today. If the A50 runs stably below the 13887-line, pay attention to the support strength of the two positions of 13544 and 13157. If the A50 runs above the 13887-line, it will open up further upward space. At that time, focus on the two positions of 14371 and 14695.

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