U.S. Stock Market Pauses On Martin Luther King Jr. Day

On January 15th (Monday), the U.S. observed “Martin Luther King Jr. Day,” resulting in a one-day closure of the stock market. Normal trading resumed on January 16th (Tuesday).

Amidst the closure, U.S. stock index futures remained stable, with both the stock and bond spot markets taking a hiatus for the public holiday. A minor uptick was noted in the U.S. dollar index.

Benoit Péloille, Chief Investment Officer at Natixis Wealth Management, emphasized a noteworthy shift, stating, “We are currently in a phase where bad economic news no longer translates into good news for the stock market.”

In the U.S., he expressed skepticism about the market’s ability to interpret as many as six 25-basis-point rate cuts, suggesting that persistent negative economic news might start causing damage.

U.S. Stock Market

Fundamental Analysis:

January 15th marked “Martin Luther King Jr. Day,” leading to the closure of the U.S. stock market.

Hong Kong Stock Market

Fundamental Analysis:

In Hong Kong, the three major indices experienced fluctuations after an initial surge.

Notably, most tech stocks recorded declines, with Meituan witnessing a dip of over 3%.

JD.com and Tencent followed suit, each falling nearly 3%. Xiaomi, Alibaba, and Kuaishou registered drops exceeding 2%. Baidu, however, defied the trend, securing an approximate 1.5% increase.

In terms of sectors, real estate stocks spearheaded the declines, with Sunac China plummeting over 8%.

The automotive sector also faced a notable downturn, with XPeng dropping nearly 4%.

Internet healthcare stocks collectively experienced a downturn, with JD Health witnessing a dip of over 6%.

Music entertainment company, Lai Fung Entertainment, took a substantial hit, plummeting over 74%.

Baidu rebounded, registering an increase of approximately 1.5%. A Daiwa report shed light on rumors linking Baidu’s Wenxin Yiyu big model and iFlytek’s Starfire to mainland military use. The speculations led to a significant 9% drop in Baidu’s U.S. stock price last Friday (12th).

Baidu clarified the situation, emphasizing no collaboration or affiliation with the research lab. The report suggested that Questmobile data indicates Wenxin Yiyu and Starfire boast the highest daily users, indicating potential widespread use of commercial big models.

Technical Analysis:  

(Hang Seng Index, 1-day chart)

Market Trends:

  • Hang Seng Index (HSI) fell by 1.92%, closing at 15,904.39 points.
  • Hang Seng Tech Index (HSTECH) dropped by 2.34%, closing at 3,324.34 points.
  • Hang Seng China Enterprises Index (HSCEI.) declined by 1.85%, closing at 5,345.66 points.

FTSE China A50 Index

Fundamental Analysis:

A-shares’ three major indices began on a low note, experienced a rebound in the initial half-hour, turned positive one after another, but soon entered a low-volatility downturn.

The ChiNext Index fell by nearly 1% in the morning.

In industry sectors, only tourism, hotels, airports, banks, insurance, and photovoltaic equipment saw increases, while securities, diversified finance, and wind power equipment faced relatively small declines.

Notably, real estate services, automotive services, gaming, petroleum, and decoration industries encountered significant downturns.

Technical Analysis:

(SSE Composite Index, 1-day chart)

Market Trends:

  • Shanghai Composite Index (SHCOMP) dropped by 0.62%, closing at 2,868.3 points.
  • Shenzhen Component Index (SZCOMP) fell by 0.73%, closing at 8,898.14 points.
  • ChiNext Index (CHINEXT) dropped by 0.89%, closing at 1,730.02 points
  • SSE STAR Market 50 Index (SSE50) declined by 0.77%, closing at 767.43 points.

Forward-looking Statements   
This article contains “forward-looking statements” and may be identified by the use of forward-looking terminology such as “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “hope”, “intend”, “may”, “might”, “plan”, “potential”, “predict”, “should”, or “will”, or other variations thereon or comparable terminology. However, the absence of such terminology does not mean that a statement is not forward-looking. In particular, statements about the expectations, beliefs, plans, objectives, assumptions, future events, or future performance of Doo Prime will be generally assumed as forward-looking statements.    

Doo Prime has provided these forward-looking statements based on all current information available to Doo Prime and Doo Prime’s current expectations, assumptions, estimates, and projections. While Doo Prime believes these expectations, assumptions, estimations, and projections are reasonable, these forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond Doo Prime’s control. Such risks and uncertainties may cause results, performance, or achievements materially different from those expressed or implied by the forward-looking statements.    

Doo Prime does not provide any representation or warranty on the reliability, accuracy, or completeness of such statements. Doo Prime is not obliged to provide or release any updates or revisions to any forward-looking statements.   

Risk Disclosure
Trading in financial instruments involves high risks due to the fluctuation in the value and prices of the underlying financial instruments. Due to the adverse and unpredictable market movements, large losses exceeding the investor’s initial investment could incur within a short period of time. The past performance of a financial instrument is not an indication of its future performance. Investments in certain services should be made on margin or leverage, where relatively small movements in trading prices may have a disproportionately large impact on the client’s investment and the client should therefore be prepared to suffer significant losses when using such trading facilities.

Please ensure you read and fully understand the trading risks of the respective financial instrument before engaging in any transaction with Doo Prime’s trading platforms. You should seek independent professional advice if you do not understand any of the risks disclosed by us herein or any risk associated with the trade and investment of financial instruments. Please refer to Doo Prime’s Client Agreement and Risk Disclosure Statement to learn more.

While every effort has been made to ensure the accuracy of the information in this document, DOO Prime does not warrant or guarantee the accuracy, completeness or reliability of this information. DOO Prime does not accept responsibility for any losses or damages arising directly or indirectly, from the use of this document. The material contained in this document is provided solely for general information and educational purposes and is not and should not be construed as, an offer to buy or sell, or as a solicitation of an offer to buy or sell, securities, futures, options, bonds or any other relevant financial instruments or investments. Nothing in this document should be taken as making any recommendations or providing any investment or other advice with respect to the purchase, sale or other disposition of financial instruments, any related products or any other products, securities or investments. Trading involves risk and you are advised to exercise caution in relation to the report. Before making any investment decision, prospective investors should seek advice from their own financial advisers, take into account their individual financial needs and circumstances and carefully consider the risks associated with such investment decision.

Share the Post:

Related Posts