[Tan Sir Talks Stocks 25.5.16] There is a glimmer of hope in the China-U.S. trade negotiations, pay attention to the relevant focus Sector.

Video highlights:-

There is a glimmer of hope in the China-US trade negotiations.

- Key sectors that the market is focused on.

Hello everyone, mooers. This episode is freshly recorded today. *The video is in Cantonese. If any mooers do not understand Cantonese, they can open the AI subtitles in the top right corner of the video (the cc ICON).

With a glimmer of hope in the China-US trade negotiations, both sides have agreed to suspend tariffs for 90 days, leading the market to anticipate improvements in China-US relations, which has stabilized the stock market this week. However, it should be noted that the bullish anticipation had already begun to reflect around April 11. As officials from both sides softened their stance at that time, the market had some prior expectations. This is also why, despite this week's rise, the upward momentum has not been particularly strong.

The market is more concerned with the progress of future negotiations between China and the USA, and the sentiment is relatively cautious. $Hang Seng Index(800000.HK)$ Breaking through the resistance level of 24,000 is not easy. The most significant factors affecting market direction are news related to Semiconductors in China-US relations. Therefore, the focus is on Technology stocks.

This week, Technology stocks are also successively releasing their earnings, with the biggest surprise being... $NTES-S(09999.HK)$ 。 $TENCENT(00700.HK)$ 和 $BABA-W(09988.HK)$ Valuation is always influenced by AI factors, and they are likely to follow the market trend. However, in terms of performance, I personally still believe that Tencent's medium to long-term development is more optimistic.

The market turnover is relatively low, but this may be due to the large amount of funds frozen by the IPO of Contemporary Amperex Technology.

Regarding the US stocks, $S&P 500 Index(.SPX.US)$ It has escaped the shadow of the double top, and after the Indices rose back above the neckline at 5,773 points, a strong upward trend began. This is mainly because the market is no longer worried about the risk of economic recession caused by the trade war. $Nasdaq Composite Index(.IXIC.US)$ $NASDAQ 100 Index(.NDX.US)$ Roughly the same.

With the USA-UK agreement, the hopes for China-USA negotiations have improved market sentiment, and the AI industry is once again attracting investment. The development of the Semiconductors Industry in the Middle East is the market focus this week, so it is advisable to pay close attention to the Semiconductors Sector in the short term, with the first choice being $NVIDIA(NVDA.US)$ , followed by $Taiwan Semiconductor(TSM.US)$ $Broadcom(AVGO.US)$ these. Considering profitability and valuation is a more practical approach.

(The above content is for educational purposes and does not involve any recommendations.)