Last week, the US non-farm payrolls data improved, which supported the Fed to continue to raise interest rates aggressively, which is not good for the stock market. At the same time, the bullish sentiment of A-shares has slowed down. Investors are reluctant to continue to buy at high levels. Hong Kong stocks and Hang Seng Technology face adjustment risks.
The constituent stocks of the Hang Seng Technology Index (HSTECH), the data is from the official website of the Hang Seng Index, and the update time is June 2022.
The US non-farm payrolls data is likely to support the Fed to raise interest rates by 75 basis points at the end of July, the dollar continues to rise, and the short-term sentiment of the stock market is affected.
Externally, the continued pressure on European and American stock markets remained unchanged. The first is that the Fed’s interest rate hike expectations continue to suppress the stock market, and the second is that the drop in oil prices has also dragged down the stock market performance.
In terms of internal trading, A-shares showed a tired state of buying after a continuous rebound. Recently, the domestic epidemic has risen, which has re-influenced risk sentiment. The previous bulls have gradually slowed down their purchases, resulting in a fall in the index, which has greatly affected the performance of Hong Kong stocks.
In general, short-term sentiment has become cautious, and investors will usher in heavy US inflation data this week, which may have an impact on the direction of the Fed’s tightening. If the US inflation situation is pressing, it will still restrict the performance of the stock market.
HSTECH remains low and fluctuated as a whole. The main resistance is at 4800-5000 in the near future. Buying profits will start to affect the disk. If the Hang Seng Technology Index falls below 4500, it will face a further correction. The reference below supports 4300, 4000 and 3800. From the overall situation, the low level of Hang Seng Technology Index still needs to be broken. If the market outlook hits the 5000 mark, it is expected to continue to rise above 5500. Before that, the trend will remain volatile if it does not fall below 3800. If it loses 3800, it will further hit a low.
Fixed investment strategy
In terms of strategy, in the long run, it is still the best choice to buy the Hang Seng Technology Index by fixed investment; the short-term market atmosphere is cautious, and the trend is inclined to a callback, and a stable fixed investment rhythm should be maintained.
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