Follow up comments
On Tuesday, the three major stock indexes of the United States rose collectively. The Dow Jones Industrial Average closed at 3265459, up 1.34%; The S & P 500 index closed at 408885, up 2.02%; The Nasdaq composite index closed at 1198452, up 2.76%. The aviation sector rose collectively, and United Airlines rose 7.88%; The energy sector continued to rise, with Schlumberger rising 1.97%; The technology sector rose, most large technology stocks rose, and Amazon rose 4.11%; Most of the popular Chinese concept stocks rose, and Jianan technology rose 14.79%. On Tuesday, Fed chairman Powell said in an interview that the Federal Open Market Committee (FOMC) widely supports raising interest rates by 50 basis points at its meetings in June and July. At the same time, Powell believes that the US economy can support the FOMC to tighten monetary policy, and the Federal Reserve will continue to raise interest rates until inflation falls back to a reasonable range. It can be seen from Powell’s remarks that US inflation has always remained at an all-time high, increasing the pressure on the Federal Reserve to raise interest rates. In the context of further tightening of global liquidity, the market still digests the impact of the tightening of monetary policy by the Federal Reserve. It is expected that the US stock market will remain volatile in the short term.
On Wednesday, Hong Kong’s three major stock indexes rose collectively. Hang Seng Index closed at 2064428, up 0.2%; Hang Seng China enterprise index closed at 708929, up 0.18%; Hang Seng Hong Kong Chinese enterprises index closed at 386934, up 1.25%. In terms of industry, the power sector showed strong performance, with China Resources power up 8.35% and Huaneng Power International Inc(600011) power shares up 7.8%; The technology sector fell. Hang Seng technology index closed at 426037, down 0.29%. In terms of individual stocks, Jinshan software fell 3.12% and Kwai fell 2.65%.
Policy highlights
\u3000\u30001. European Central Bank: Central Bank Management Committee Ryan said that the acceleration of wage rise is now the only key factor determining the direction of monetary policy. The ECB’s first rate hike in more than a decade is likely to take place this summer. (Jin x data)
\u3000\u30002. Central Bank of the Philippines: the governor of the central bank said that the inflation risk is upward this year and basically balanced in 2023. (Jin x data)
Company dynamics
\u3000\u30001. Tencent Holdings (0700. HK): on the evening of May 18, it announced at the Hong Kong stock exchange that the net profit in the first quarter was 23.413 billion yuan, a year-on-year decrease of 51% and a month on month decrease of 75%; The revenue was 135471 billion yuan, basically flat year-on-year, down 6% month on month; In the first quarter, the value-added service revenue was 72.738 billion yuan, the online advertising revenue was 17.988 billion yuan, and the financial technology and enterprise service revenue was 42.768 billion yuan. （iFinD）
\u3000\u30002. Wal Mart (0r1w. L): EPS adjusted in the first quarter was $1.3, and the market expected $1.48; Revenue of US $141.57 billion, expected to be US $139.09 billion; Wal Mart lowered its earnings per share guidelines for the second quarter and expected its annual EPS to decline by 1%
Risk tips
Economic growth was less than expected
The spread of trade protectionism
Fed policy exceeded expectations
