In late trading last night, the U.S. Department of Labor announced that the Consumer Price Index (CPI) in July rose by 8.5% year-on-year, and the core CPI rose by 5.9% year-on-year. Judging from the CPI in July, it not only dropped from 9.1% in June, but was also lower than market expectations of 8.7%, indicating that U.S. inflation has declined.
After the data was released, the market began to expect U.S. inflation to peak, the pace of interest rate hikes by the Federal Reserve slowed down, the U.S. dollar index and the U.S. ten-year Treasury bond yield both fell sharply, U.S. stocks The Nasdaq Index rose by 2.89%, and the U.S. Nasdaq Index rose from the bottom With a rebound of more than 20%, it has entered a technical bull market.
In addition to the news, Tianfeng Securities analyst Ming-Chi Kuo posted on social media that the average selling price of the iPhone 14 series models is expected to increase by 15%. Compared with the iPhone13 series, the average selling price of the iPhone14 series will be US$1,000 to US$1,050. Guosheng Securities said that Apple has entered the peak stocking season. The domestic consumer electronics supply chain has continued to improve its industrial status in the global supply chain. The industry is still at the bottom of valuation. The second growth curve of automotive electronics has begun. It is expected that iPhone 14 stockings this year will be higher than last year. Maintain good growth.
In the past few months, the domestic consumer electronics sector had plummeted due to the cancellation of orders. Today, stimulated by the news of Apple's price increase, the collective price surged. Consumer electronics leader Goertek and Luxshare Precision all rose by the limit.
Stimulated by the above good news, A shares opened higher in early trading today. Northbound funds bought heavily, and the consumer electronics sector rebounded sharply, driving the strength of low-level technology sectors such as semiconductors, games, 5G, and computers.
But just low technology stocks are not enough to drive the sharp rise in A shares today. In fact, the long and short differences were large in early trading, and the index shot up and fell back many times. At the end of the morning, Mr. Key Brokerage launched, directly driving the index upward. The bulls were able to defeat the shorts in one fell swoop. The Shanghai Composite Index broke through the 20-day line in early trading.
After the opening of at midday, the securities sector continued to soar, and low-value sectors such as infrastructure, real estate, construction machinery, insurance, and banks were all brought up. Large-cap blue-chip stocks strengthened, and their volume was amplified. Shanghai Stock Exchange 50 rose more than 2%.
During the session, we saw market rumors that registration system is about to be implemented, but according to the financial association’s understanding from regulators, the rumors are untrue. The outbreak of securities may be simply a matter of falling into place.
Specifically, as of the close, the Shanghai Composite Index rose by 1.60%, the GEM Index rose by 2.37%, Kechuang 50 rose by 1.47%, northbound funds bought 13.3 billion in net, and the buying rate hit a new high since June. The previous time was 13.9 billion bought on May 31, and the turnover in the two cities once again exceeded one trillion, reaching 1.07 trillion.
Among them, low-level sectors such as securities, China Concept, 5G, medical care, games, and tourism led the gains, while photovoltaics, military industry, new energy vehicles and other early strong sectors have weakened. This is a typical high-low switching market.
After the market closed, we have been thinking about the reasons for today’s riots in the financial sector. We think it may be the following reasons:
As mentioned in yesterday’s article, the large and small caps are divided. After July, the Shanghai Stock Exchange 50 began to correct. Under the multiple negative factors such as the vague 5.5% target at the meeting and geopolitical conflicts, the Shanghai Stock Exchange 50 Index has been approaching the low of April 27, while the small-cap indexes CSI 1000 and China National Securities 2000 have been reaching new highs.
This reflects that funds are excessively chasing small-cap stocks and abandoning large-cap stocks. The continued weakness of the Shanghai Composite 50 reflects the excessive pessimism of funds about the macro economy. But we have been emphasizing that extreme differentiation is unsustainable. Excessive differentiation will increase market vulnerability, and it will eventually be repaired by one side compensating for growth. Sure enough, today the Shanghai Stock Exchange 50 increased in volume..
Many times, all it takes is a stimulus to fall into position, and the rebound will come naturally. High cost performance is a benefit in itself, and the market will switch in the direction of least resistance.
Risk warning:
The stock market is risky, so investment needs to be cautious. This article does not constitute investment advice, and readers need to think independently.
