US stocks fell again, dragging global stock markets down...
US stocks fluctuated intensified overnight. As of the close, the three major stock indexes closed down again. Nasdaq index was 6908.82 points, down 1.70%; S&P 500 index was 2641.89 points, down 1.82%; the Dow Jones Industrial Average was 24465.64 points, down 2.21%.
U.S. President Trump criticized the Fed again on Tuesday, saying the U.S. central bank was a "problem" and called for lower interest rates. He told the media, "I hope the Fed will lower interest rates. Compared with others, the Fed will be a problem for us."
The decline in US stocks once again dragged down global stock markets. Last night, the three major European stock indexes closed down one after another. Asia-Pacific stock markets opened lower across the board in the morning of today, and the Hang Seng Index and A shares also fell collectively.
The three major U.S. stock indexes all fell
smeared the gains last year
December 29, 2017, that is, the last trading day last year, the Nasdaq index closed at 6903.39 points, the S&P 500 index closed at 2673.61 points, and the Dow Jones index closed at 24719.22 points.
latest closing, with the Nasdaq at 6908.82 points, the S&P 500 at 2641.89 points, and the Dow Jones Industrial Average at 24465.64 points. All three major stock indexes smeared the gains in the last year.
After hitting a historical high in early October, US stocks have frequently pulled back. In more than a month, the Nasdaq fell by more than 1,100 points and fell by 14%, the S&P 500 fell by 10%, and the Dow fell by more than 9%.
U.S. tech stocks continue to fall
FAANG fell one A-share
Recently, the US stock market fell back. The technology stocks that had performed best in the 10-year long bull market in the US stock market were sold in panic due to the valuation bubble and fell heavily. At the close of overnight, Apple closed down nearly 5%, leading the Dow Jones Industrial Average, hitting a new low in half a year; Amazon fell 1.11%, Netflix fell 1.34%, and Tesla fell 1.69%.
Yesterday, Goldman Sachs lowered Apple's target price to $182. According to US media CNBC, on the previous trading day, Apple fell below the key support level of the 200-day moving average and entered a technical bear market. In addition to Apple, Amazon, Netflix, and Facebook have also fallen into bear markets.
has been pulled back since early October to the present. Among the five major FAANG technology stocks, Facebook (FB.O) fell 18%, Amazon (AMZN.O) fell 25%, Netflix (NFLX.O) plummeted 30%, Apple (AAPL.O) fell nearly 22%, and Google parent company Alphabet (GOOGL.O) fell nearly 15%, with a market value falling from US$757 billion, or about RMB 5.26 trillion.
According to Wind data, the total market value of A-shares as of November 21 is only 5.1 trillion yuan, which means that FAANG has fallen by one A-share in more than a month.
US financial stocks closed lower overnight. JPMorgan Chase fell 2.15%, Goldman Sachs fell 3.47%, Citi fell 3.23%, Morgan Stanley fell 2.95%, Bank of America fell 1.33%, Wells Fargo fell 1.46%, and Berkshire Hathaway fell 3.29%.
Chinese stocks fell with the decline
JD fell again nearly 8% to a new low this year
overnight Chinese stocks fell again with the US stock market. Jianpu Technology ranked first with a 18% decline, Youxin plummeted by 12%, Qutoutiao fell by 9%, JD.com fell by nearly 8%, Baidu , New Oriental, and Sohu all fell by more than 3%, and Alibaba fell by 2.37%.
The previous trading day, JD.com fell by more than 8% due to its third-quarter performance, and fell by 7.67% overnight. JD.com's latest stock price was US$19.49, down about 53% this year. Compared with the all-time high of US$50.68 at the end of January, the decline was more than 60%, and the market value evaporated by US$44 billion, or about RMB 305.5 billion.
At the same time, JD.com was lowered by several investment banks. Nomura lowered JD.com's target price from $41 to $24, and its rating was downgraded from buy to neutral; Macquarie downgraded from $35 to $24, and its rating was downgraded from $36 to $31; Cowen and Company downgraded from $34 to $23.
Last night, Pinduoduo 's revenue increased by more than 6 times year-on-year against the trend, and rose by more than 16%, with the latest price at US$23.14.
Crude oil fell sharply last night
US energy stocks closed lower across the board
Yesterday, crude oil futures prices fell sharply, and US WTI crude oil closed at its lowest level in more than a year. As of the close, WTI's January crude oil futures closed down $3.77, or 6.59%, at $53.43 per barrel.Brent's January crude oil futures closed down $4.26, or 6.38%, at $62.53 per barrel.
Oil prices plummeted, US energy stocks closed lower across the board, ExxonMobil fell 2.84%, Chevron fell 2.78%, and ConocoPhillips fell 3.69%. Last night, US President Trump made a remark, saying that Saudi has helped the United States lower oil prices and prefer oil prices to fall.
Business Club crude oil analysts believe that the current continued decline in crude oil is mainly due to factors in market sentiment, and the fundamentals have not deteriorated significantly. Although US crude oil production continues to increase, it is expected to slow down in the future. In addition, the possibility of OPEC announcing a production cut at its December meeting is high, so the market's bearish sentiment will converge and crude oil may temporarily stop falling.
Bitcoin plummeted 17% in the day
Some mining machines have been liquidated
11 On the afternoon of November 20, the Bitcoin quotation broke through the US$4,300 defense line, and the RMB quotation fell below 30,000 yuan, setting a new low. The decline exceeded 17% within 24 hours. Bitcoin has fallen by more than 22% in the past seven days.
Bitcoin has fallen by 66% since the beginning of this year. It fell by 77% in less than a year from its December 2017 high.
It is reported that Bitcoin's successive declines have caused the price to break through the cost prices of multiple mining machines, distributed in some small and medium-sized mining farms in Xinjiang, Inner Mongolia and other domestic markets. In the continuous decline in the price of the currency, they have no choice but to resell and liquidate the mining machines second-hand. A mining machine priced at 20,000 yuan a year ago, the second-hand transfer price was only more than 1,000 yuan. On November 20, a computing power custody platform also issued a liquidation announcement.
The three major European stock indexes adjusted with the US stock market
fell across the board yesterday
Last night, with the global stock markets falling, the three major European stock indexes fell across the board.
German DAX index fell 1.58% to 11,066.41 points, a new low in the past two years; French CAC40 index fell 1.21% to 4,924.89 points; British FTSE 100 index fell 0.76% to 6,947.92 points.
Since October, European stock markets have also entered a period of adjustment with the US stock market. In less than two months, the German DAX index fell 9.6%, the French CAC40 index fell more than 10%, and the UK FTSE 100 index fell about 7.5%.
Due to the decline in US stocks, the Asia-Pacific stock market opened low across the board
Affected by the continued decline in US stocks overnight, the Asia-Pacific stock market opened low across the board.
Japanese stocks Nikkei 225 index opened down 1.4% to 21286.81 points, the South Korean comprehensive index opened down 1.33% to 2082.58 points, the FTSE Singapore STI index opened about 0.6% lower, and the FTSE China A50 index futures opened down 0.92% in Singapore.
around 9:30, the Nikkei 225 index and the South Korean comprehensive index both fell by more than 1%, and the FTSE Singapore STI index fell by about 0.6%.
Hang Seng Index opened and fell
Energy Index led the decline
Hong Kong Hang Seng Index opened and fell 1.33% to 25496.85 points. Hong Kong stocks performed poorly at the opening today, with all Hang Seng Industry Index falling and none of them rising.
Affected by the overnight sharp drop in crude oil, the Hang Seng Energy Index led the decline, the "three barrels of oil" fell sharply, and CNOOC fell nearly 5%. Raw materials, telecommunications and consumer goods manufacturing industries ranked among the top in the decline.
weighted stock Tencent continued its decline, with a decline of about 0.8%; Xiaomi, which rose against the trend yesterday due to good performance, opened today and fell by nearly 2%.
A shares open low across the board
Petroleum and Petrochemical lead the decline
Affected by the continued sharp drop in external stock markets, the Shanghai Composite Index fell 0.98% in the early trading, the ChiNext Index fell 0.8%, and individual stocks continued to fall, with only more than 200 stocks in the red.
Among the 29 CITIC first-level industries, Petroleum and Petrochemical led the decline, of which 36 stocks fell, CNOOC's subsidiary CNOOC fell nearly 4%, while CNOOC and Sinopec fell more than 2%.
On the market, the venture capital sector performed strongly, with many concept stocks rising; the real estate industry ranked the top in terms of growth; the securities sector rose abnormally, and many securities stocks rose. The focus stock Botian Environment fell by more than 5%.
U.S. stock volatility increases
How will A-shares continue to affect the subsequent trends?
Guotai Junan Li Shaojun released a research report today saying that he made three judgments on the risk of US stock collapse/probability of economic recession/US stock-emerging risk spillover that market concerns:
1. The expected return of US stocks declines and fluctuations will rise next year, which will have an impact but it is difficult to collapse or directly enter a bear market, and there is still positive returns;
2. After experiencing a short period of stagflation next year, what is really worthy of investors' concern is forward deflation. The combination of short stagflation + long deflation makes inflation trading inappropriate, and preventing recession is the key;
3. In 2019, the above economic state will continue to have an impact on emerging market economies, and the fluctuation of US stocks will constitute an external impact on global equity.
Li Shaojun said that we should be wary of the negative impact of US stock volatility on A-shares. For A-shares, the amplified global market volatility will also impact the risk preferences of Chinese investors, and will also affect the possibility of incremental overseas funds, especially cyclical short-term funds, which may fluctuate or even reverse, causing shocks and disturbances to A-shares. Investors still need to be vigilant about changes in the external environment.
Goldman Sachs' latest view believes that emerging market stocks have the greatest potential for growth next year, especially the Chinese stock market. As the U.S. economy may expand by the end of 2020 and China uses stimulus to alleviate slowdowns, developing countries' stock markets could achieve a 12% return in US dollars, while assets overall will rise moderately in 2019, said Kamakshya Trivedi, strategist at Goldman Sachs.
It also gives reasons for improvement in economic growth outside China, lower valuations and the end of the Fed's austerity policy, and returns in the next six months may be better than in the next six months, especially concerns about the next U.S. recession heats up at that stage.
This article is from China Fund News
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