U.S. Stocks
Fundamental Analysis:
The Dow Jones Industrial Average closed higher on Friday, 8th April 2022 and the S&P 500 ended lower, as battered bank stocks rose, and markets grappled with how best to deal with a potential economic downturn while the Federal Reserve takes aggressive steps to suppress inflation.
The benchmark 10-year U.S. Treasury yield hit a three-year high of 2.73%, helping to lift the S&P bank index up 1.18% after hitting a 13-month low on Thursday. The banking index has fallen 10.8% so far this year.
Since hitting a two-month high in late March, the market has been on a downtrend as investors reconfigured their portfolios as the Federal Reserve signaled a sharp rate hike. Economically sensitive value stocks have outperformed tech-heavy growth stocks this year, which typically outperform in a low-interest rate environment.
Technical Analysis:
(Dow 30, 1-hour chart)
Execution Insight:
The Dow focuses on the 34477-line today. If the Dow runs stably above the 34477-line, it will pay attention to the suppression strength of the 34724 and 35110 positions. If the Dow index breaks below the 34477-line, it will pay attention to the support strength of the 34343 and 34211 positions.
Hong Kong Stocks
Fundamental Analysis:
The Hang Seng Index (HSI) opened lower, and moved down by 2.45% at 21336.37 points in midday trading, while the Hang Seng TECH Index (HSTECH) fell 3.97%.
Science and technology stocks and Chinese stocks listed in Hong Kong plunged, while real estate and property management sectors fell heavily.
On the other hand, pharmaceutical stocks, F&B stocks, and power stocks moved lower, as sports, auto, lithium battery, and photovoltaic solar sectors moved lower. Auto stocks were among the top decliners, with XPeng Inc. (9868.HK) down by 8.81%, Yadea Group Holdings Ltd. (1585.HK) down by 7.07% and Li Auto Inc. (2015.HK) down by 6.69%.
Technical Analysis:
(HK50, 1-hour chart)
Execution Insight:
HK50 Index focuses on the 22127-line today. If HK50 can run stably below the 22127-line, then pay attention to the support strength of 21450 and 20467. If HK50 runs above the 22127-line, then pay attention to the suppression strength of 22785 and 23294.
FTSE China A50 Index
Technical Analysis:
(FTSE China A50, 1-hour chart)
Execution Insight:
FTSE China A50 pays attention to the 13983-line today. If the A50 runs steadily below the 13983-line, pay attention to the support strength of the 13157 and 12733 positions. If the A50 runs above the 13983-line, it will open up further upward space. At that time, pay attention to the suppression of the 14669-line.
Risk Disclosure
Trading in financial instruments involves a high degree of risk due to fluctuations in the value and price 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.
Please make sure you read and fully understand the trading risks of the respective financial instrument before engaging in any transaction with us. You should seek independent professional advice if you do not understand the risks disclosed by us herein.
Disclaimer
While every effort has been made to ensure the accuracy of the information in this document, DOO Prime does not warrant or guarantee the accuracy, completeness or reliability of this information. DOO Prime does not accept responsibility for any losses or damages arising directly or indirectly, from the use of this document. The material contained in this document is provided solely for general information and educational purposes and is not and should not be construed as, an offer to buy or sell, or as a solicitation of an offer to buy or sell, securities, futures, options, bonds or any other relevant financial instruments or investments. Nothing in this document should be taken as making any recommendations or providing any investment or other advice with respect to the purchase, sale or other disposition of financial instruments, any related products or any other products, securities or investments. Trading involves risk and you are advised to exercise caution in relation to the report. Before making any investment decision, prospective investors should seek advice from their own financial advisers, take into account their individual financial needs and circumstances and carefully consider the risks associated with such investment decision.
