U.S. Stocks 

Fundamental Analysis: 

The S&P 500 closed on Friday, 30th September 2022 to record its largest September percentage loss in 20 years, capping a tumultuous quarter of trading that was marked by historically high inflation, rising interest rates and recession fears.

All three major indices were sharply lower, giving back brief early session gains. The S&P 500 and the Dow fell for the third consecutive week, and all three major indexes fell for the second consecutive month.

In the first nine months of 2022, U.S. stocks have fallen for three consecutive quarters, the longest losing streak for the S&P 500 and Nasdaq since 2008 and the longest quarterly losing streak for the Dow in seven years.

The Federal Reserve’s most relentless series of rate hikes in decades in an effort to rein in stubbornly high inflation has jolted markets, and many market participants are watching key economic data for signs of a looming recession.

These concerns were barely eased by the Commerce Department’s personal consumption expenditures (PCE) report, which showed that while consumers continued to spend, the prices they paid accelerated, further exceeding the Federal Reserve’s inflation target, and almost certainly the Fed’s hawkish monetary policy will last longer than investors had hoped.

Dire warnings were also issued by Nike and cruise ship operator Carnival, with both companies citing inflation-related margin pressures in reaction to recession fears. The stocks of these two companies plunged 12.8% and 23.3%, respectively.

Technical Analysis:

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow focuses on the 28809-line today. If the Dow runs steadily above the 28809-line, it will pay attention to the suppression strength of the two positions of 29204 and 29538. If the Dow runs steadily below the 28809-line, it will pay attention to the support strength of the two positions of 28495 and 28162.

Hong Kong Stocks 

Fundamental Analysis: 

Affected by the sharp drop in U.S. stocks, the three major indexes of Hong Kong stocks opened lower.

The Hang Seng Index (HSI) opened 1% lower at 17050 points, the Hang Seng China Enterprises Index (HSCEI) and the Hang Seng TECH Index (HSTECH) opened 0.8% and 0.78% lower respectively.

Technology stocks generally fell, AAC Technologies Holdings Inc. (2018.HK) opened 3% lower, Xiaomi Corporation (1810.HK), Sunny Optical Technology (Group) Company Limited (2382.HK), Alibaba Health Information Technology Limited (0241.HK), Lenovo Group Limited (0992.HK) fell 2%. Meanwhile, Bilibili Inc. (9626.HK) is listed on the main board today, and opened 1.3%.

On the other hand, Country Garden Holdings Company Limited (2007.HK), and Zhongsheng Group Holdings Limited (0881.HK) rose 5%.

Technical Analysis: 

(HK50, 1-hour chart) 

Execution Insight: 

HK50 focuses on the 18606-line today. If HK50 can run stably above the 18606-line, then pay attention to the suppression strength of the 19517 and 20467 positions. If the HK50 runs below the 18606-line, then pay attention to the support strength of the 17535 and 16664 positions.

FTSE China A50 Index 

Technical Analysis: 

(FTSE China A50, 1-hour chart) 

Execution Insight: 

A50 focuses on the 12945-line today. If the A50 runs stably below the 12945-line, pay attention to the support strength of the two positions of 12733 and 12533. If the A50 runs above the 12945-line, it will open up further upward space. At that time, pay attention to the two positions of 13157 and 13344.

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