U.S. Stocks
Fundamental Analysis:
U.S. stocks closed sharply lower on Tuesday, 29th June 2022, in a broad-based sell-off as poor consumer confidence data dampened investor optimism and fueled concerns about the recession and the upcoming earnings season.
The S&P 500 and Nasdaq fell about 2% and 3%, respectively, with Apple, Microsoft and Amazon bringing the biggest drag to the index. The blue-chip Dow was down about 1.6%.
With the end of the month and the end of the second quarter approaching, the index S&P 500 is on track for its largest first-half percentage decline since 1970.
All three major indexes are on track to post their first two consecutive quarterly declines since 2015.
By the close, the Dow Jones Industrial Average was down 491.27 points, or 1.56%, to 30,946.99, the S&P 500 was down 78.56 points, or 2.01%, to 3,821.55, and the Nasdaq was down a heavy 343.01 points, or 2.98%, to 11,181.54.
Meanwhile, 10 of the 11 major sectors in the S&P 500 closed lower. Energy stocks were the only sector to gain, benefiting from higher crude oil prices.
Technical Analysis:
(Dow 30, 1-hour chart)
Execution Insight:
The Dow focuses on the 31661-line today. If the Dow runs steadily above the 31661-line, it will pay attention to the suppression strength of the 32083 and 32455 positions. If the Dow runs steadily below the 31661-line, it will pay attention to the support strength of the 31291 and 31000 positions.
Hong Kong Stocks
Fundamental Analysis:
Overnight, the three major U.S. stock indexes fell for the second day in a row, with the Nasdaq performing its worst, dropping nearly 3%.
The National Health Commission’s reduction of the quarantine period for immigrants boosted investor sentiment, and “return to normal”.
That said, concept stocks such as aviation, travel, catering, and gambling are expected to continue to be active in the short term.
At the opening of the market today, the Hong Kong stock market’s Hang Seng Index (HSI) opened 1.31% lower at 22,125.61 points, China Hongqiao Group Limited (1378.HK) fell by more than 6%, and Alibaba Group Holding Limited (9988.HK) and NetEase, Inc. (9999.HK) fell by more than 3%.
Li Auto Inc. (2015.HK) fell about 7% and plans to issue an additional ADS of up to US$2 billion. NIO Inc. (9866.HK) fell by about 6%. The previous response was shorted by Grizzly Research, saying that the report contained a lot of false information and relevant procedures had been initiated.
The Hang Seng TECH Index (HSTECH) fell by 2.28%, Li Auto Inc. (2015.HK) fell by more than 7%, NIO Inc. (9866.HK) fell by more than 6%, GDS Holdings Limited (9698.HK) and Trip.com Group Limited (9961.HK) fell by more than 5%, XPeng Inc. (9868.HK) fell by nearly 5%, and NetEase, Inc. (9999.HK) and Alibaba Group Holding Limited (9988.HK) fell by more than 3%.
Technical Analysis:
(HK50, 1-hour chart)
Execution Insight:
HK50 focuses on the 22127-line today. If HK50 can run stably above the 22127-line, then focus on the suppression strength of 22785 and 23294. If HK50 runs below the 22127-line, then pay attention to the support strength of 21450 and 20467.
FTSE China A50 Index
Technical Analysis:
(FTSE China A50, 1-hour chart)
Execution Insight:
FTSE China A50 focuses on the 14695-line today. If the A50 runs stably below the 14695-line, pay attention to the support strength of the two positions of 14352 and 13970. If the A50 runs above the 14695-line, it will open up further upward space. At that time, pay attention to the two positions of 14985 and 15184.
Risk Disclosure
Trading in financial instruments involves high risks due to the fluctuation in the value and prices of the underlying financial instruments. Due to the adverse and unpredictable market movements, large losses exceeding the investor’s initial investment could incur within a short period of time. The past performance of a financial instrument is not an indication of its future performance. Investments in certain services should be made on margin or leverage, where relatively small movements in trading prices may have a disproportionately large impact on the client’s investment and client should therefore be prepared to suffer significant losses when using such trading facilities.
Please make sure you read and fully understand the trading risks of the respective financial instrument before engaging in any transaction with Doo Prime’s trading platforms. You should seek independent professional advice if you do not understand the any of the risks disclosed by us herein or any risk associated with the trade and investment of financial instruments. Please refer to Doo Prime’s Client Agreement and Risk Disclosure Statement to find out more.
[Disclaimer]
This information is addressed to the general public solely for information purposes and should not be taken as investment advice, recommendation, offer, or solicitation to buy or sell any financial instrument. The information displayed herein has been prepared without any reference or consideration to any particular recipient’s investment objectives or financial situation. Any references to the past performance of a financial instrument, index, or a packaged investment product shall not be taken as a reliable indicator of its future performance. Doo Prime and its holding company, affiliates, subsidiaries, associated companies, partners and their respective employees, as well as managers, make no representation or warranties to the information displayed and Doo Prime and its holding company, affiliates, subsidiaries, associated companies, partners and their respective employees, as well as managers, shall not be liable for any direct, indirect, special or consequential loss or damages incurred a result of any inaccuracies or incompleteness of the information provided. Doo Prime and its holding company, affiliates, subsidiaries, associated companies, partners and their respective employees, as well as managers, shall not be liable for any direct, indirect, special or consequential loss or damages incurred as a result of any direct or indirect trading risks, profit, or loss arising from any individual’s or client’s investment.
