The U.S. non-agricultural data was unexpectedly good, and the U.S. dollar staged a “flip” and Apple’s performance was lower than expected, which is not conducive to short-term stock market sentiment. Hang Seng Technology Index or test 4400 support.
The Hang Seng Technology Index (HSTECH) adjusts its constituent stocks at the end of each month, and the latest update time is December 31, 2022. After adjustment, the three companies with the largest proportion since January 2023 are: Kuaishou, Tencent Holdings and Meituan. The stock prices of these three companies have the greatest impact on the trend of the Hang Seng Technology Index.
Hong Kong stocks continue to be affected by the trend of mainland China and the US stock market. US economic data has triggered a change in the market’s view of US fundamentals. The renewed strength of the US dollar is not conducive to the performance of the stock market.
Overseas, the U.S. non-agricultural data in January greatly exceeded expectations. The number of non-agricultural employment surged by 517,000, far higher than the market forecast of 185,000, the largest increase since July 2022. The unemployment rate recorded 3.4%, reaching 53 year low. The ISM Non-Manufacturing Purchasing Managers Index for January recorded 55.2, higher than the expected 49.2, showing a pick-up in business activity. The two data suggest that the U.S. economy is highly resilient, strengthening U.S. economic expectations and supporting the Fed to continue raising interest rates, which will undoubtedly bring the dollar back to the nectar.
Large tech stocks such as Apple and Amazon reported lower-than-expected financial results last week, which is not conducive to short-term stock market sentiment.Apple’s first-quarter net revenue was1171.54billion U.S. dollars, compared with the same period last year1239.45million dollars down5%; Net profit is299.98billion U.S. dollars, compared with the same period last year346.30million dollars down13%.
U.S. economic data boosted the dollar, while dismal earnings from big tech stocks weighed on sentiment.
In mainland China, when the stock markets in China and Hong Kong lack clear guidance, the market is affected by both the U.S. dollar and the U.S. stock market, and there is a clear tendency to take profits.
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HSTECH maintains a volatile upward trend. As the index becomes more and more obstructed, pay attention to the first-line support of 4400. If it breaks here, it may lead to a further turnaround. The next level of support is at 4000; if it stays above 4400, it will point to the 5000 mark after 4800 in the picture .
In the long run, the valuation of Hong Kong stocks is low, and the Hang Seng Technology Index has concentrated the best technology and Internet stocks in Hong Kong. Macro fundamentals are undergoing new changes, especially the Fed’s interest rate hike expectations are weakening, China’s economic momentum has re-gathered after the relaxation of epidemic prevention and control, and foreign capital has re-priced the Chinese and Hong Kong stock markets. The most difficult time for the Hong Kong stock market has passed. Regular investment in the Hang Seng Technology Index ETFs are preferred. The index is still at a relatively low level while the fixed investment in the early stage continues to make profits. It is advisable to consider holding it firmly and wait for the market to continue to rise.
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