U.S. Stocks 

Fundamental Analysis: 

The U.S. stock market S&P 500 and Nasdaq closed lower in choppy trading on Wednesday, 7th December 2022 as investors struggled to find a clear direction as they weighed how the Federal Reserve’s monetary policy tightening might trickle down to businesses.

The S&P 500 fell for a fifth straight session, and the Nasdaq fell for a fourth straight day.

The Dow Jones Industrial Average closed flat, ending a two-session losing streak. Apple fell 1.4% after Morgan Stanley lowered its iPhone shipment target.

Tesla fell 3.2%, weighed down by production decline concerns. Both created a drag on the Nasdaq.

Concerns that the Fed could stick with a longer rate hike cycle have intensified recently after strong employment and services reports.

More economic data later this week, including weekly initial jobless claims, the Producer Price Index (PPI) and the University of Michigan’s consumer confidence survey, will be closely watched for clues related to the Fed’s Dec. 14 decision.

Concerns about sharply rising borrowing costs have boosted the dollar, but weakened market demand for risky assets such as stocks this year.

The S&P 500 is poised to end a three-year run of gains.

Among the 11 major sector indexes of the S&P 500, technology stocks and communication services stocks fell 0.5% and 0.9%, respectively, and were the worst performers. Energy stocks fell for the fifth consecutive session.

The sector’s performance was hampered by another drop in U.S. crude oil prices, which closed at their lowest level in 2022, and concerns about global growth prospects erased all gains since Russia’s invasion of Ukraine, where the Russian-Ukrainian war has exacerbated the worst global energy supply crisis in decades.

Technical Analysis:

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow today pays attention to the 33390-line. If the Dow runs stably above the 33390-line, then pay attention to the suppression strength of the 33949 and 34221 positions.

Hong Kong Stocks 

Fundamental Analysis: 

China’s Covid-19 prevention and control optimization measures continue to fall, overlapping with Hong Kong is studying the feasibility of relaxing various epidemic prevention measures,

The three major indices of Hong Kong stocks opened high, closed up collectively at noon, the Hang Seng Index (HSI) rose 2.8% to 19,000 points, Hang Seng TECH Index (HSTECH) rose 5.49% on 4,200 points, the Hang Seng China Enterprises Index (HSCEI) rose 3.18%.

The half-day net southbound capital inflow was 2.743 billion Hong Kong dollars half-day funds, the market turnover was 83.7 billion Hong Kong dollars. 

On the market, the weighted technology stocks rose generally, Bilibili Inc. (9626.HK) rose 18%, Alibaba Group Holding Limited (9988.HK), Meituan (3690.HK) rose 6%, JD.com, Inc. (9618.HK) rose 5%, Baidu, Inc. (9888.HK), Tencent Holdings Limited (0700.HK) rose 4%.

Market vision to further optimize the entry and other external prevention of import measures, gaming stocks rose sharply, Wynn Macau, Limited (1128.HK) rose 16%.

The Hong Kong government is reviewing the relaxation of a number of epidemic prevention measures, Hong Kong retail stocks strengthened, Sa Sa International Holdings Limited (0178.HK) jumped nearly 20%.

Treatment guidelines and commonly used drug reference tables were released, and Internet medical stocks continued to soar.

In November, the total revenue of 43 Chinese mobile game manufacturers increased by 11.3% from October, and mobile game stocks generally rose.

In addition, benefiting from the optimization of prevention and control, consumer stocks such as restaurant stocks, travel stocks and auto stocks continued to be popular.

Cloud computing stocks, gold stocks, film and entertainment stocks, domestic housing stocks, education stocks and many other stocks rose collectively.

In addition, energy stocks such as gas stocks, power stocks, coal stocks and oil stocks were weaker.

Technical Analysis: 

(HK50, 1-hour chart) 

Execution Insight: 

HK50 pays attention to the 18606-line today. If HK50 can run stably above the 18606-line, then pay attention to the suppression strength of the two positions of 19517 and 20467.

FTSE China A50 Index 

Technical Analysis: 

(FTSE China A50, 1-hour chart) 

Execution Insight: 

FTSE China A50 pays attention to the 12900-line today. If A50 runs stably below the 12900-line, pay attention to the support strength of the two positions of 12659 and 12273. If A50 runs above the 12900-line, it will open up further upside space.

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