On Thursday, September 1, Eastern Time, U.S. stocks closed mixed up and down on Thursday, and the Nasdaq recorded its fifth consecutive trading day decline. The market is still paying attention to the prospects of aggressive interest rate hikes in Europe and the United States and the risks of economic recession. In addition, historical data show that September has been the worst month for U.S. stocks in a year, which makes investors more cautious while coping with high inflation and the Fed rate hike.
Chinese "monster stocks" Yingxi Group only maintained its crazy rise for one day. It soared more than 80 times yesterday and plummeted 95% today, triggering to suspend trading many times, and its market value evaporated by nearly US$20 billion. It closed at US$30 per share on Thursday.
9: The start of September 1 commodity is "unfavorable", but European natural gas rebounded strongly, smoothing out the intraday 7% decline and once rose by more than 9%. However, the German government expects Russia to cut off gas supply due to maintenance in October, and Europe is still shrouded in the haze of the energy crisis.
blockbuster report is about to be released
The highly anticipated U.S. non-farm jobs report for August will be released on Friday, one of the last batch of data Fed officials will obtain before the mid-September policy meeting, which will help Fed officials solve complex inflation problems. Markets are concerned that the August non-farm employment report may prompt the Fed to hike the third rate hike later this month after a series of data pointed to consumer resilience and high labor demand. "What we want to tell customers and stakeholders is that we should focus on the labor market... If the labor market starts to weaken, consumer confidence will also weaken. A weaker labor market will be a very strong hint that the economy may enter a recession." UBS reported on Thursday that the latest economic data showed that the probability of the U.S. economy entering a recession in the next 12 months has climbed to 60%. UBS economist Pierre Lafourcade and his team once predicted a 40% recession probability in June, and the probability is now 20 percentage points higher.
Will the hawkish Federal Reserve make "Dark September" even more dangerous?
Investors are discussing whether U.S. stocks will challenge June lows again in September after Fed officials make tough hawkish remarks. From a historical perspective, U.S. stock markets usually performed poorly in September. U.S. stocks have fallen by an average of 0.6% in September over the past decade, the only month of the year to fall.
As of the end of August this year, the Dow Jones Industrial Average has fallen by 13.3% so far this year, the S&P 500 index has fallen by 17%, and the Dow Jones Industrial Average has fallen by 24.5%. The decline in stock markets under the Fed's suppression seems to be the norm in 2022. Yahoo Finance said that historical experience shows that if US stocks show a cumulative decline from the middle of the year to August, it often indicates that there will be more weakness and volatility at the end of the year. The report from the
Bespoke Investment Group also confirms the existence of this seasonal trend. Since 1928, during the years when the S&P 500 has fallen from January to August, September has often experienced more setbacks, with an average drop of 3.4% for the month and an average drop of 1.2% for the September to December. If the stock market rises during the year as September enters the year, the average increase of 3.3% will be increased by 3.3% for the rest of the year.
Wall Street's current consensus on the market in September this year is: Stocks will continue to fall due to the expectation that the Fed will keep interest rates high for a longer period of time, and will fall into range volatility before the Fed announced its decision to raise interest rates on September 21, and there may be significant turbulence afterwards.
US stocks rose and fell differently
chip stocks energy stocks fell across the board
S&P 500 index closed up 11.85 points, or 0.30%, to 3966.85 points. The Dow Jones Industrial Average closed up 145.99 points, or 0.46%, to 31,656.42 points. The Nasdaq closed down 31.08 points, down 0.26%, to 11,785.13 points. The Dow Jones Industrial Average and S&P 500 stopped four consecutive negatives, and the Nasdaq closed down for five consecutive days, hitting a new low for a month.
Dow Job 1 component , Johnson & Johnson rose 2.47%, and Ann rose 2.16%, leading the Dow Job. Among the major sectors of the S&P 500, energy fell 2.3%, materials fell 1.4%, and the IT sector where chip stocks were located fell nearly 0.5%; eight sectors closed higher, medical care rose nearly 1.7%, utility rose nearly 1.4%, and communication services where Meta and Google also rose more than 1%, with the industry gaining more than 0.1% the smallest.
chip stocks generally fell for five consecutive days, with Philadelphia Semiconductor Index and semiconductor industry ETF SOXX closing down about 1.9%. Among the constituent stocks of the S&P 500, the intraday fell 12% to hit the biggest drop since March 2020, Nvidia, which closed down 7.7%, hitting a new low since April 1 last year. AMD closed down 3%, Applied Materials fell more than 2%, Qualcomm , Broadcom , Ram Research, and Seagate Technology fell more than 1%, and Intel fell 0.5%.
energy stocks fell across the board, with ExxonMobil (XOM) down 1.8%, Chevron (CVX) down 1.61%, ConocoPhillips (COP) down 1.74%, Schlumberger (SLB) down 3.39%, and Oxygen (OXY) down 3.66%. ExxonMobil and Shell sold Aera, a joint venture between the two parties, to German asset management company IKAV.
Popular Chinese stocks most fell
Yingxi Group soared more than 80 times and fell more than 95%
Popular tweets most closed down, Alibaba fell 1.78%, JD fell 0.60%, Pinduoduo rose 0.17%, Bilibili fell 0.64%, Baidu rose 0.35%, New Oriental fell 2.04%, Netease fell 0.43%, Tencent Music rose 0.59%, iQiyi rose 1.37%, 7.47%, and Weibo fell 4.88%.
Yingxi Group, which soared more than 86 times yesterday, fell more than 95% today, with an evaporated market value of nearly US$20 billion. IG Markets Ltd. analyst Hebe Chen said the driving force behind Yingxi Group's stock price seems to be trying to replicate the story of Shangmax and Zhifu financing, which have also experienced an unprecedented stock price frenzy.
Before the US stock market on September 1, Tuniu (TOUR.US) announced its second quarter results for 2022. Tuniu's Q2 revenue fell 77% year-on-year, and its net loss expanded to 128.5 million. According to the financial report, Tuniu's net revenue in the second quarter was 37 million yuan (unit: RMB, the same below), a year-on-year decrease of 77.0%, mainly due to the impact of the new crown pneumonia epidemic. By business division, the revenue of group tour business was 9.5 million yuan, a year-on-year decrease of 92.5%; the revenue of other businesses was 27.4 million yuan, a year-on-year decrease of 20.4%. The net loss was RMB 128.5 million, compared with the net loss of RMB 14 million in the same period last year.
Most popular technology stocks rose
British regulators targeted Microsoft
most popular technology stocks rose, and only Microsoft closed down the six giants. The TAMAMA Technology Index of Wande rose 0.55%, Apple (AAPL) rose 0.47%, Amazon (AMZN) rose 0.83%, Netflix (NFLX) rose 2.9%, Google (GOOGL) rose 1.4%, and Microsoft (MSFT) fell 0.41%.
The UK antitrust regulator "Competition and Markets Authority" (CMA) said on Thursday that Microsoft's acquisition of Activision Blizzard will harm market competition, and the two companies must provide acceptable commitments within five working days, namely September 8, to resolve these competition issues. Otherwise, the CMA will conduct further in-depth investigations into the transaction.
According to foreign media reports, Tesla executives recently visited the graphite mine and processing plant of Canadian miner Nouveau Monde Graphite Company in Quebec , hoping to build a factory in Canada. Nouveau Monde Graphite is a Quebec-based company dedicated to developing graphite mines and processing facilities, providing automakers and battery manufacturers with key materials for manufacturing the anode portion of the battery. Tesla, like many other automakers, has recently targeted Canada's mineral resources to ensure battery supply and support their plans to rapidly increase electric vehicle production. Tesla requires a lot of graphite to produce every vehicle.
European natural gas decline turned to rise
The haze of the energy crisis has not dissipated
Commodities started unfavorable in September, but after three consecutive days of heavy losses, the European continental benchmark Dutch natural gas finally rebounded strongly on Thursday, smoothing out the intraday decline of more than 7% and turning to rise.
From 4:00 on August 31 to 4:00 on September 3 local time, Gazpromium Corporation stated that it will repair the compressor , the only compressor that can operate at the "North Stream-1" pipeline, and the supply of gas to Europe will be suspended during this period.In response, the EU is considering all the possibilities of intervening in the energy market. German side said that it will no longer rely on Russia's natural gas supply this winter, as Europe is facing a critical moment of the energy crisis. Nord Stream 1 natural gas supply was interrupted this week due to maintenance, and more situations are expected next month. More and more people in Europe expect these oil pipelines to be used as a means to force the EU to impose sanctions.
Foreign media reported that according to sources, the Berlin government is ready to deal with the ongoing disruption caused by more maintenance of the Nord Stream natural gas pipeline in mid-October. One of the people familiar with the matter said the outage may be longer than the current downtime.
The latest news from Russia and Ukraine
The delegation of the International Atomic Energy Agency has left the non-Ukrainian controlled Zaporoze region.
On September 1, local time, according to Russian News Agency , the delegation of the International Atomic Energy Agency (IAEA) has left the Zaporozhe area, which is not controlled by Ukraine. The Director-General of the International Atomic Energy Agency, Grossi, said that the first observation of key areas of nuclear power plants has been completed, and the International Atomic Energy Agency will stay at the Zaporo thermonuclear power plant for a long time. He said that the purpose of the International Atomic Energy Agency delegation to the Zaporo Thermal Nuclear Power Plant was to protect the nuclear power plant from possible nuclear accidents, and the delegation will focus on inspecting the nuclear safety and radiation safety-related facilities of the nuclear power plant.
Grossi said that the delegation had successfully collected a lot of important information within a few hours of the Zaporotherapeutic nuclear power plant and he saw the "key things" he wanted to see. He did not rule out the possibility of a delegation's experts meeting with residents of Aenegordar, and the possibility of long-term deployment of inspectors at the Zaporo Heat Nuclear Power Plant.
A thermal power plant near the Zaporo thermonuclear power plant was attacked and the nuclear power plant has switched to emergency mode.
On September 1, local time, Tass quoted the Aenegordar Municipal Government, saying that the Ukrainian army is still attacking the city, and a thermal power plant near the Zaporo Thermal Power Plant was also attacked. The Zaporo Thermal Power Plant has switched to emergency mode, but Unit No. 6 is still operating normally. At present, Ukraine has no response to this.
Russia requested UN Security Council to hold a meeting on the bombardment of the Zaporo thermonuclear power plant.
Russian Deputy Representative to United Nations Polyansky said on September 1 that Russia has requested a UN Security Council meeting on September 6 on the shelling of the Zaporo thermonuclear power plant.
Russian Ministry of Defense said to repel the Ukrainian army's attack. Ukrainian army said to attack Russian ammunition depot and other military targets
Russian Ministry of Defense issued a war situation information notice on September 1 saying that in the past day, the Ukrainian army continued to attempt attack in the direction of Nikolayev Krivoyrog in southern Ukraine, but all failed. The Russian army attacked the Ukrainian army in this direction. In addition, the Russian army also repelled the Ukrainian attack on the direction of Kharkiv.
On the same day, the Ukrainian General Staff reported that the Russian army tried to fully control the Donetsk Donetsk area, and the Ukrainian army repelled the Russian attack in four directions, including Slaviyansk and Bachmut in the Donetsk territories. The Ukrainian army also stated that from August 29 to August 31, the Ukrainian army continued to attack military targets such as the ammunition depot of the Russian command post in southern Ukraine. In addition, many major bridges in the Khlsong area continued to be attacked by the Ukrainian army.
Putin is here! "Polish panic"
According to Global Network , Russian President Putin went to Kaliningrad for a working visit on September 1. This is also the first time Putin has appeared on the Baltic coast of the Russian-Ukraine military conflict in more than half a year. Against the backdrop of the Baltic countries collectively standing at the forefront of the anti-Russian front and repeatedly threatening to interrupt the Kaliningrad logistics channel, this trip attracted high attention from the outside world, among which Poland responded the strongest. "Why did the Russian president appear near the Polish border?" Polish media asked.Russian newspaper Independent said that Putin's visit to Kaliningrad shocked Poland, as if Putin was not going to celebrate "Knowledge Day" and talk about cargo transit with Kaliningrad governor Alikanov, but instead fired the "Iskander" missile or "Dagger" hypersonic missile to Warsaw .
mourned Gorbachev before leaving
September 1, before leaving for Kaliningrad, Putin mourned the last leader of the Soviet era, who left flowers next to Gorbachev's coffin at the Central Clinical Hospital of Moscow, paid tribute to the portrait and bowed. This is also the first time Gorbachev's body has been displayed to the public. However, the Kremlin announced on the same day that due to the work schedule, Putin will not attend Gorbachev's funeral, which is scheduled to be held on September 3.
"Putin is here!" At around 3 pm local time on the 1st, the Russian News Agency issued a news release. According to reports, after arriving in Kaliningrad, Putin gave an open class to the winners of Olympic and competitions in the fields of culture, art, science, sports, etc. He said in the class: "Russia will continue to develop actively." September 1 is Russia's "Knowledge Day". According to the schedule released by the Kremlin website, Putin will also visit museums, theaters and educational complexes in Kaliningrad on the same day, hold a working meeting with the governor of Kaliningrad, and visit a branch of Nashimov Naval School.
On the day Putin arrived, the head of the Lithuanian Railway Company said that the company had received a payment of 2.5 million euros and would provide three to four weeks of cargo transit services to Kaliningrad State. Previously, according to the Russian newspaper "Visit" report, starting from September 1, trains leading to Kaliningrad face the second suspension of operation this year. This time, not only freight trains but also passenger trains will be suspended. The reason is that the Bank of Lithuania refuses to accept transit payments from Russian Railways. Previously, Lithuania also blocked traffic to Kaliningrad on the grounds of "EU sanctions".
"Russia stepped on a shoe on the gates of NATO and the EU"
Western media have made various speculations and hypes about Putin's purpose of visiting Kaliningrad, among which Poland's reaction was particularly strong. According to Poland's "Polsat" TV station on the 1st, Polish Deputy Foreign Minister Jablonsky said on the same day that the government is continuing to monitor Putin's visit and has obtained some "intelligence data that cannot be disclosed." He said that Kaliningrad is a Russian enclave in Europe. "Russia stores weapons in the region to scare the EU and NATO, so such an action can be a symbol." Former Polish ambassador to Russia Karnarentz said that Putin's visit was not for "Knowledge Day", but would use this visit to make some "strong and symbolic statements: I think it may be a threat similar to a large-scale military force."
"Why did the Russian president appear near the Polish border?" Polish weekly magazine website predicted that Putin would focus on "praising the patriotic and heroic attitude of Russian soldiers during the Ukrainian War" when inspecting Kaliningrad.
And Polish News Network said that Kaliningrad is a time bomb. , an inconspicuous area on the map, is actually "a shoe that Russia stepped on the gates of NATO and the EU." "This huge barracks between Poland and Lithuania are a potential bomb that can explode at any time with any excuse. Putin needs Kaliningrad to blackmail the EU and NATO neighbors - that's all." "Putin's visit to the westernmost part of his country has never caused such a strong reaction in Poland." Russian Independent analyzed that Russia's recent deployment of Russian MiG-31K fighter jets equipped with "Dagger" hypersonic missiles in Kaliningrad may have caused concern in Poland. According to reports, in fact, Moscow will not do this. The straight-line distance from Kaliningrad to Warsaw is only 277 kilometers. It can cover Poland with the "Iskander" missile, and the "Dagger" missile has other farther targets. The article said that Warsaw made a militarized association with Putin's visit to Kaliningrad, "what they are worried about is the current extremely tense relationship between Russia and Poland and the Baltic countries."
"The moment the president flew to Kaliningrad, we cannot rule out all kinds of provocations from the three Baltic countries, or even Poland." Before Putin set off, Mezevic, chairman of the Russian Baltic Research Association, said that the local situation was still balanced a year ago, and now "the political elites in these countries are almost crazy." He said that the special plane "may have problems" when passing through the air corridor near Vanderlo Island in Estonia, but he believed that the Russian Navy and Aerospace Forces could ensure the safety of the president's special plane.
Currently, due to factors such as geopolitical relations and sanctions, flights from Russia to Kaliningrad can only detour international neutral sea and airspace, and the itinerary has increased significantly compared to the past.
U.S. lawmakers began to make an impeachment of Biden
He committed a "felonious crime"
Global Times reported that according to the US Capitol Hill report on August 30, Republican politicians who hope to control the House of Representatives after the US Congress midterm elections in November have begun to make an impeachment of President Biden, which has even been listed as a priority for next year by some.
report pointed out that some conservative American lawmakers have filed articles of impeachment against Biden in this Congress, accusing Biden of committing "felony" in dealing with a series of issues such as the border crisis, the COVID-19 pandemic and the U.S. withdrawal from Afghanistan.
As Democrats still control the House of Representatives, these articles of impeachment failed to push. But with widespread predictions from American public that Republicans will win a House majority in the midterm elections, many of these conservative lawmakers want to use their new powers to oust the president they consider incompetent, and some even want to make it a priority.
"I have been saying that President Biden should be impeached because he deliberately opened our borders to make Americans even less secure." Rep. Bob Good, a Republican of Virginia, said, "Congress has the responsibility to hold the president responsible for any failures he has in fulfilling his constitutional duties, so after the Republicans win a House majority, they must be prepared to actively implement oversight of on the first day."
The Capitol Hill pointed out that since Biden took office, there have been at least 8 articles of impeachment against him: 3 related to his handling of the wave of immigration on the southern border of the United States; 3 against his handling of the U.S. withdrawal from Afghanistan; one condemning his suspension of eviction orders to help renters during the COVID-19 pandemic; and one related to his overseas business deal by his son Hunter Biden.
These articles of impeachment will expire at the end of this Congress, but some initiators have said they will consider re-issue soon next year.
This article is from China Fund News
