On the last trading day of this week, US stock closed sharply and ushered in "Black Friday" again. The three major U.S. stock indexes all recorded "four consecutive declines" in the daily line. The Dow Jones Industrial Average hit a new low since November 2020. The S&P 500 gave up all the gains this summer, which is close to the lowest level of the year.
Due to the hike of interest rates in many countries around the world, the aggravation of economic recession expectations, international oil prices fell sharply, and US WTI crude oil fell below the $80 mark, hitting a new low since January this year, and energy stocks were hit and collectively fell by more than 5%.
technology stock fell across the board, the market value of the "big six" evaporated by US$115.8 billion (approximately RMB 823.1 billion) overnight, and Tesla AI Day invitation letter revealed that the project has made new progress.
driven by the continued interest rate hike of the Federal Reserve , the dollar index hit a new high in nearly 20 years, and the currencies of many countries depreciated sharply against the US dollar. The pound fell more than 3% against the US dollar on Friday, the biggest intraday drop since March 2020. After the euro fell below parity to the US dollar this year, the market is paying close attention to whether the pound can reach parity to the US dollar.
U.S. stocks fell four consecutive times. S&P 500 gave up all gains this summer
As of the close, the Dow Jones Industrial Average fell 1.62% to 29590.41 points, S&P 500 fell 1.72% to 3693.23 points, and the Nasdaq fell 1.8% to 10867.93 points. This week the Dow Jones Industrial Average fell 4%, the S&P 500 fell 4.65%, and the Nasdaq fell 5.07%.
Dow Jones fell by more than 800 points during the session, down nearly 20% from the high at the beginning of the year, and at the same time, it broke through the low in June, recording a new low since November 2020, and is "one step away" from the "bear market" range. Nasdaq fell by more than 30% this year, and the S&P 500 fell by more than 22%, and it had entered a "bear market" earlier. Huali Street does not have an official definition of a bear market, but the market has the idea that a short-term loss of at least 20% is a bear market.
crude oil price fell
energy stocks led the decline in U.S. stocks
U.S. oil fell below the $80 mark for the first time since January. The US WTI crude oil futures price for delivery in November fell 4.06 US dollars, a drop of 4.86%, closing at $79.43 per barrel.
Affected by the decline in crude oil futures prices, energy stocks closed down collectively, ExxonMobil fell 5.32%, ConocoPhillips fell 8.60%, Schlumberger fell 8.45%, Occupy Petroleum fell 5.09%, and Chevron fell 6.53%.
The Price Futures Group senior market analyst Phil Flynn said in a report on Friday: "Economic turmoil has caused crude oil futures to fall quarterly for the first time in two years because the market is worried that the Fed's aggressive tightening policy may soon trigger an economic recession. And the global faces insufficient energy supply this winter, which will support the future crude oil futures prices."
There is still major news to pay attention to in the global bulk market. According to Bloomberg, Swiss commodity trading giant Glencore (Glencore) suffered a $486 million fine for fuel price manipulation case.
tech stocks fell across the board Tesla evaporated 300 billion
Large technology stocks fell generally, Tesla fell 4.59%, closing at US$275.33, with a total market value of US$862.7 billion, evaporated US$41.6 billion (approximately RMB 300 billion); Amazon fell more than 3%, closing at US$113.78, with a total market value of US$1.16 trillion, evaporated US$35.8 billion (approximately RMB 255 billion); Apple fell 1.51%, closing at US$150.43, with a total market value of US$2.42 trillion, evaporated US$37.1 billion (approximately RMB 264.5 billion). In addition, Microsoft and Google both fell more than 1%.
news, according to technology media techgenzy, Tesla has officially stated that the "2022 Artificial Intelligence Day" is scheduled to be held in Palo Alto next Friday (September 30) in California time, and will also be broadcast simultaneously. "Tesla AI Day was postponed to September 30, by then we could have a prototype called Optimus, which could eventually solve the global labor shortage and could deliver items around the factory in the near term.”
European market stocks and bonds and foreign exchanges three-kill
Also encountered "Black Friday".
Local time on September 23, local time, the European stock market opened and continued to decline. As of the close, the European Stoke 50 index fell 2.29%; the UK FTSE 100 index fell 1.97%; German DAX index fell 1.97%; French CAC40 index fell 2.28%; the Portuguese benchmark stock index fell more than 3% at one point. In terms of the bond market, as the market risk aversion sentiment heated up, euro zone treasury bonds were sold wildly, and bond market yields rose collectively. France's 10-year treasury bond yield and Italy's 10-year treasury bond yield both rose by more than 10 basis points. Germany's 10-year treasury bond yield rose to a new high since December 2011. Germany's 2-year treasury bond yield rose to 2% for the first time since 2008.
--------------------------------------- treasury bond yield rose to a collective treasury market on the same day. The euro's exchange rate against the US dollar broke its low again in the past 20 years and has now fallen below 0.97 to 0.9691. Market analysts believe that the euro exchange rate 's decline in this round was mainly due to the United States The impact of the Fed's interest rate hike again.
pound fell 3%!
It is worth noting that the pound fell more than 3% against the US dollar on Friday, setting the largest intraday decline since March 2020, and refreshing the low since 1985 to 1.0848. After the euro-USD exchange rate fell below parity this year, the market is paying close attention to whether the pound-USD exchange rate can reach parity.
On Friday, the pound-USD fell below 1.10 for the first time since 1985. Since then, it has fallen below 1.09 and fell more than 3% intraday, the largest decline in two and a half years. The 5-year UK Treasury yield rose by nearly 60 basis points at one time, the largest increase in history. The benchmark 10-year UK bond yield rose by more than 30 basis points in day, which will eventually hit the largest single-day increase.
pound trading history against the US dollar can be traced back to 250 years ago. At the beginning of this year, no one would think that the pound would be parity with the US dollar, but the market predicts that by the end of this year, there is a considerable probability that investors will "witness history". As the threat of the UK recession approaches, the surge in debt cost , and the possibility that the Bank of England's independence is increasingly restricted, parity between the pound and the US dollar has gradually become a possibility.
strong dollar impact on the global level is deepening
Driven by the Federal Reserve's continued interest rate hikes, the US dollar index hit a new high in nearly 20 years, and currencies in many countries depreciate sharply against the US dollar.
For the United States, a stronger dollar means a decline in prices of imported goods, efforts to curb inflation have been strongly promoted, and the relative purchasing power of Americans has reached a new high. But the appreciation of the dollar is putting pressure on other countries, making it more expensive to repay the dollar debt borrowed by emerging market governments and businesses.
Ragulam Rajan, professor of finance at the University of Chicago Booth Business School, believes that the impact of this rate hike on other countries has just emerged. Just one day after the Federal Reserve announced a rate hike, central banks of seven countries including the United Kingdom, Switzerland, South Africa, and Indonesia, all announced rate hikes.
JP Morgan chief Asian and Chinese stock strategist Liu Mingdi said that the market is currently in a relatively volatile situation. According to JPMorgan Chase's estimate, for every 2 percentage points increase in the US dollar index, the entire developing countries' stock market will be lowered by 3.8%, but the Asia-Pacific stock market will only lower by 2.9%, so the Asia-Pacific stock market will outperform accordingly.
When the strong US dollar and rate hikes are expected to be high, two industries often perform poorly: one is industrial stocks and the other is materials stocks. On the other hand, defensive industries performed relatively well, including , telecommunications, , games, must-have consumption, medical and health care, etc. In addition, the financial sector often performs well.
◆Source: Securities Times, Shanghai Securities News, etc.
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