Market update for the week of June 24, 2022

This week in the US, after declining for three weeks in a row, the major U.S. stock indexes regained their footing, with the NASDAQ surging more than 7%, the S&P 500 adding more than 6%, and the Dow rising more than 5%. The results marked a near mirror-image reversal from the previous week, when the S&P fell into a bear market as it tumbled more than 20% from a recent high in early January. On market sentiment, software, photovoltaic, real estate, biotechnology, Internet, automobile, consumer electronics, finance, etc. performed strongly, while a few sectors such as nonferrous metals, energy, and agriculture were weak. Growth concerns were a permanent feature this week. It shows in the outperformance of the growth stocks versus the value stocks, and in the large-cap stocks versus the small and midcap stocks.

In terms of Chinese concept stocks, star stocks rebounded sharply on Friday. TSMC rose 2.14%, Alibaba rose 4.91%, and rose 16% in a week, JD.com and NetEase rose by more than 3%, Pinduoduo rose 2.69% week-on-week, and Baidu rose 12.25%. 3.57%, up 10.16% week-on-week, NIO up 4.47%, up over 25% last week, ideal up 3.95%, up 28.27% week-on-week, Xiaopeng up 7%, up over 37% in one week, Shell up 7.67% by Weekly up 26.39%

The 2-yr note yield dropped 12 basis points this week to 3.06% after dipping below 2.90% earlier in the week. The 10-yr note yield dropped 11 basis points this week to 3.13% after flirting with 3.00% earlier in the week. Elsewhere, WTI crude futures dropped to $101.53/bbl on Wednesday before rebounding to $107.65/bbl on Friday, down fractionally for the week. Copper futures traded as low as $3.64/lb on Friday (down 9.2% for the week) before settling the day at $3.74/lb.

In China, the three major A-share indexes have risen for four consecutive weeks. The Shanghai Composite Index rose by 0.99% on a weekly basis, the Shenzhen Component Index rose by 2.88% on a weekly basis, and the ChiNext Index rose by 6.29% on a weekly basis. Wind power, home appliances, kitchen and bathroom, tourism, aviation, automobiles, photovoltaics sectors continued to strengthen, while oil and gas energy, metals, education, agriculture sectors fell back. The bullish sentiment of institutional views has gradually increased recently, and most brokerages have mentioned the term "bull market" in their recently released outlooks.

For Hong Kong Market, HSI rebounded supported by huge rally on large technology stocks last week. The Hang Seng Index rose 3.06% week-on-week, the HSCEI rose 3.55% week-on-week, and the Hang Seng Technology Index rose 4.11% week-on-week. Real estate, automobiles, medical care, home furnishing, catering, tourism, aviation sectors rose significantly, while concepts such as non-ferrous metals, energy, education, and textiles fell. Last week, the accumulated net inflow of southbound funds was HK$16.513 billion. Money flow into Ideal Auto, Geely Auto, GCL Technology, Tencent, Xiaopeng, etc. In terms of major global asset prices, WTI August crude oil futures closed up $3.35, or 3.21%, at $107.62 per barrel, down about 0.46% this week. Brent crude oil futures for August ended up $3.07, or 2.79%, at $113.12 a barrel, down about 0.15% this week. COMEX August gold futures closed up $0.50 at $1,830.30 an ounce, ending a four-day losing streak. Base metals continued to fall across the board this week, with Lon Tin, which fell for two weeks in a row, continuing to lead the decline, falling more than 21% this week. London nickel fell nearly 13%, falling for four weeks in a row. London lead fell by more than 7%, London copper fell by more than 6%, and London zinc fell by nearly 5%, all falling for three consecutive weeks.

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