No fear of the market rise and fall, defensive stocks win

No fear of the market rise and fall, defensive stocks win

The US interest rate cut is expected to heat up, but Hong Kong stocks rebounded weakly, and 27,000 points were lost.

‧ The market is lingering over the worries of the trade war. The support of the SSE 2840 area is not to be lost.

‧ The market is not clear, public defensive stocks are taking turns, gas and road stocks can be concerned.

The US interest rate cuts are expected to heat up, but the market is lingering over the trade wars, and Hong Kong stocks rebounded weakly. The defensive stocks took turns in the shock city, and gas and road stocks could be taken care of.

Driven by US stocks on Tuesday night, Hong Kong stocks rose 357 points to 27,119 points yesterday, and then the gains narrowed, closing at 26,895 points, up 133 points, 27,000 points were closed and lost; the H-Share Index closed at 10345 points, up 3 points . The market turnover was 79.4 billion yuan.

In terms of the focus sector, the second batch of drugs purchased in the Mainland may be launched before the end of September. Due to the risk of possible drug price reductions, Zhongsheng Pharmaceutical (01177) and Shijiao (01093) plunged 8.4% and 4.8% respectively.

In the trend, the Hang Seng Index was oversold after a sharp drop in May, but it was high and low, and the rebound was weak. The next support level was 26,000 points to 26,200 points in January, and 10 antennas were the market resistance (27110 points yesterday). ), at least 27,500 points to break the zone is expected to reverse the weak.

US employment data slips

Fed Chairman Powell said that appropriate measures will be taken to maintain sustained economic expansion, suggesting that “there is an open attitude towards interest rate cuts." At the same time, the US economic data deteriorated, commonly known as “small non-agricultural". The number of ADP employment in May fell to the lowest since March 2010. The number of new jobs was only 27,000, far worse than the expected 185,000, and the interest rate monetization was also increased. . After the data was released, the US 10-year bond yield fell back to below 2.1%, and the 2-year bond yield fell below 1.8%, the lowest since December 2017.

cut interest rates to deal with trade

However, interest rate cuts may not offset the impact of the Sino-US trade war. The Sino-US trade war has deteriorated since May, and short-term differences are difficult to resolve. Once the interest rate is cut, US President Trump will be more difficult to resolve under the Fed’s “helping war”. At the same time, the risk of global economic recession has not disappeared, the World Bank cut the global economic forecast for 2019 to 2.6%, the lowest in the last three years. The International Monetary Fund (IMF) also lowered China’s GDP growth forecast for 2019 and 2020 to 6.2% and 6%.

Pay attention to whether the pedestrian will release water

In terms of A-shares, the Shanghai Stock Exchange continued to rise and fall in a narrow range from 2840 to 2960. However, the Shanghai Stock Exchange has recently approached the top of the rising slot at the 2840-point zone on February 25, and this level cannot be lost.

In terms of funds, the PBOC netted RMB 210 billion in a single day yesterday, the largest single-day net return since mid-March. At the same time, there will be 463 billion yuan of medium-term lending facilities (MLF) due today. In the absence of water, it is noted whether the PBOC will release water in moderation. If there is still a net return to the water collection operation in the short term, it will be unfavorable to the A-share market.

The market is unclear, and public defensive stocks are taking turns. In addition to local public stocks, some funds have spread to road stocks and gas stocks. The trend is expected to continue, and the Burning (01193) and Shenzhen Expressway (00548) can be concerned.