U.S. Stocks
Fundamental Analysis:
The Federal Reserve will announce the results of the U.S. banking industry’s “annual health check” on Thursday local time, that is, the results of the annual bank stress test.
According to the “stress test” guidelines established after the financial crisis in 2007-2009, the Fed annually tests banks’ balance sheets to assess the size of capital needed to withstand a severe economic downturn in response to the assumption that a severe economic downturn will occur, and the elements of a recession change each year.
As previously disclosed by the Federal Reserve, this year’s elements include, but are not limited to, a nearly 40 percent decline in commercial real estate prices, a 10 percent drop in unemployment, and increased stress in the corporate bond market.
The results of this test will determine how large an amount of capital banks will need to keep their assets healthy and the specific size of capital they can return to shareholders through stock buybacks and dividends.
Technical Analysis:
(Dow 30, 1-hour chart)
Execution Insight:
The Dow focuses on the 29767-line today. If the Dow runs steadily below the 29767-line, it will pay attention to the support strength of the 29204 and 28809 positions. If the Dow runs stably above the 29767-line, it will pay attention to the suppression strength of the 30350 and 31000 positions.
Hong Kong Stocks
Fundamental Analysis:
U.S. stocks were closed overnight, and European stocks closed up collectively. Hong Kong stocks opened slightly higher today, the Hang Seng Index (HSI) rose 0.48%, the Hang Seng China Enterprises Index (HSCEI) rose 0.35%, the Hang Seng TECH Index (HSTECH) rose 0.42%.
On the market, large technology stocks generally rose, Baidu, Inc. (9888.HK) rose 1.5%, Meituan (3690.HK), NetEase, Inc. (9999.HK), and Tencent Holdings Limited (0700.HK) are opening higher.
Biotechnology stocks, Internet medical stocks, photovoltaic stocks, sporting goods stocks are strong, while domestic housing stocks and property management stocks continue to rise yesterday with Jiayuan International Group Limited (2768.HK) up by nearly 14%.
On the other hand, domestic insurance stocks, lithium batteries, heavy machinery stocks fell in general. Koolearn Technology Holding Limited (1797.HK) fell nearly 4% after Tencent reduced its holdings by 74.6 million shares, moving lower for the 3rd consecutive trading day.
Technical Analysis:
(HK50, 1-hour chart)
Execution Insight:
HK50 focuses on the 20614-line today. If HK50 can run stably above the 20614-line, then pay attention to the suppression strength of the 21450 and 22127 positions. If the HK50 runs below the 20614-line, then pay attention to the support strength of the 19517 and 18606 positions.
FTSE China A50 Index
Technical Analysis:
(FTSE China A50, 1-hour chart)
Execution Insight:
FTSE China A50 focuses on the 14352-line today. If the A50 runs stably below the 14352-line, it will pay attention to the support strength of the two positions of 13970 and 13544. If the A50 runs above the 14352-line, it will open up further upward space. At that time, pay attention to the two positions of 14695 and 14985.
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