China-Singapore Jingwei, July 7th: On Wednesday, Eastern Time (July 6), the three major U.S. stock indexes closed up in shock. During the session, the Federal Reserve released the minutes of its June monetary policy meeting, and U.S. stocks subsequently started to rise. As of the close, the Dow rose 0.23%, the Nasdaq rose 0.35%, and the S&P 500 index rose 0.36%.
Source: Wind
On the news front, the minutes of the Federal Reserve’s June monetary policy meeting showed that most officials of the Federal Reserve believe that risks to economic growth are biased to the downside. If inflation fails to fall, the Fed may adopt "more restrictive" policies.
According to CCTV News, the minutes showed that officials were "highly concerned" about inflation risks. Many officials were worried that long-term price expectations may rise and it may take some time to reduce the inflation rate to 2%. In response to soaring inflation and turmoil in financial markets, the Federal Reserve raised its benchmark interest rate by 75 basis points at its June meeting. Federal Reserve Chairman Powell said that he will resolutely curb inflation and may raise interest rates by 1250 or 75 basis points at the July meeting, but 75 basis points of interest rate hikes will not become the norm.
Large technology stocks rose across the board, apple rose 0.96%, Amazon rose 0.73%, Google rose 1.16%, Facebook rose 0.94%, Microsoft rose 1.28%.
Bank stocks fell across the board, JPMorgan Chase fell 0.65%, Goldman Sachs fell 1.16%, Citigroup fell 0.99%, Morgan Stanley fell 0.87%, Bank of America fell 0.83%, Wells Fargo down 1.5%.
Energy stocks fell, with Exxon Mobil falling 1.80%, Chevron falling 1.32%, ConocoPhillips falling 1.54%, and Schlumberger falling 1.80%.
Most popular Chinese concept stocks fell, Yixian E-commerce fell 18%, Dane Technology fell 15.89%, Wuxin Technology fell 9.71%, Century Internet fell 9.56%, Huya fell 8.97%, Zhihu fell 8.94%, Mavericks electric fell 8.75%, Kingsoft Cloud fell 8.45%, iQiyi fell 8.26%, Pinduoduo fell 7.40%, Bilibili fell 5.41%; in terms of increase, Qutoutiao , Xiaoying Technology, Cheetah Mobile , Sohu rose more than 1%. The new energy vehicle sector experienced a correction, with NIO falling by more than 6%, Li Auto and Xiaopeng Motors both falling by more than 3%.
Major European stock indexes also closed higher across the board, Germany's DAX index rose 1.56%, France's CAC40 index rose 2.03%, and Britain's FTSE 100 index rose 1.17%.
However, the president of IMF said on July 6, local time, that the global economic outlook has "significantly darkened" since April. In view of the increased risks, the possibility of a global economic recession next year cannot be ruled out.
In addition, the UK has encountered new "risks". According to CCTV News, British Health Secretary Sajid Javid and Finance Minister Rishi Sunak resigned one after another on the 5th due to losing confidence in the leadership of Prime Minister Boris Johnson. Then on the 6th, officials from various departments of the British government resigned one after another. According to statistics from the British Broadcasting Corporation BBC, more than 30 British government officials have resigned from their posts.
International crude oil continued its downward trend. WTI August crude oil futures closed down $0.97, or 0.97%, at $98.53/barrel; ICE Brent September crude oil futures closed down $2.08, or 2.02%, at $100.69/barrel.
Gold prices also fell, with COMEX August gold futures closing down $17, or 0.96%, at $1,746.90 per ounce, the lowest closing price in nine months. (China-Singapore Jingwei APP)
