. Daily Index Analysis - Hong Kong stocks decreased

Daily Index Analysis – Hong Kong stocks decreased

Daily Index Analysis – Hong Kong stocks decreased

21 Sep 2023

Introduction:

In the global indices market, Asian markets mirrored Wall Street’s decline on Thursday in response to the latest Federal Reserve policy comments. Key indices, including the Shanghai Composite, Hang Seng, Nikkei 225, and others, registered losses. Meanwhile, European shares slid on the Fed’s hawkish stance, with futures contracts in Germany, France, and the UK all reflecting downward trends. On Wall Street, U.S. equities also closed lower following the Fed’s decision to maintain interest rates and provide a cautious outlook on inflation.

Market In Focus for today – Hang Seng

Hong Kong stocks decreased, continuing their downward trend to a month low. As officials suggested that another raise this year would be reasonable, the Federal Reserve took a hawkish break from its cycle of tightening.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 17764.29 | Negative Crossover | Bearish
  • MA 20: 17959.49 | Negative Crossover | Bearish
  • MA 50: 18125.72 | Negative Crossover | Bearish

Simple:

  • MA 5: 17803.4 | Negative Crossover | Bearish
  • MA 20: 17989.05| Negative Crossover | Bearish
  • MA 50: 18204.46 | Negative Crossover | Bearish

RSI (Relative Strength Index): 33.49 | Sell Zone | Bearish

Stochastic Oscillator: 8.66 | Sell Zone | Neutral

Resistance And Support Levels: 

  • R1: 17965 | R2: 18416.
  • S1: 17571 | S2: 16838


Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell : 17341 | Take Profit: 16833 | Stop Loss: 17716.

Elsewhere in the Indices Market

On Thursday, Asian markets fell broadly in line with Wall Street’s performance as traders perceived the most recent U.S. Federal Reserve policy comments.

The Shanghai composite is down at 0.77%. Overall, the Singapore MSCI is down 1.96% to 279.32. Over in Hong Kong, the Hang Seng Index is down by 1.29% to 17,655.41. In Japan, the Nikkei 225 was down 1.37% to 32,571.03, while the Topix index was down 0.94% to 2,383.41. South Korea’s Kospi down 1.75% to 2,514.97. Australia S&P/ASX 200 is down 1.37% to, 7,065.20.

European shares slide on hawkish Fed; BoE up next.

The DAX futures contract in Germany traded 1.10% lower, CAC 40 futures in France down 1.44% to 7,225.03, and the UK 100 futures contract in the U.K. lower 0.65% to 7,681.41.

Wall Street closes lower after the Fed holds rates and foresees higher for longer.

U.S. equities fell on Wednesday as the Federal Reserve kept key interest rates at their current levels, as was largely anticipated, and raised growth projections while cautioning that the fight against inflation was far from done.

Indexes down: Dow 0.22%, S&P 500- 0.94%, Nasdaq up 1.53%.

Corporate News:

Walmart Inc. (WMT) up 0.32% at 163.91, Nike Inc. (NKE) is down at 0.61% at 94.04, and Amazon.com, Inc. (AMZN) is down at 1.70% at 135.29. JPMorgan Chase & Co (JPM) down 0.42% at 148.30, Walt Disney Co (DIS) up 0.74% at 82.56.

Key Economic Events & Data Release Today:

(USD) FOMC Press Conference at 12:00.

(NZD) GDP (QoQ) (Q2) Actual 0.9%, Forecast 0.5%, Previous –0.1% at 04:15.

(CHF) SNB Press Conference at 13:30.

(GBP) BoE Interest Rate Decision (Sep) Forecast 5.50%, Previous 5.25% at 16:30.

(USD) Initial Jobless Claims Forecast 225K, Previous 220K at 18:00.

(EUR) ECB President Lagarde Speaks at 19:30.