Important global commodities plummeted across the board!
Global products plummeted
Let’s first experience the situation of global products through two pictures.
As can be seen from the figure, global commodities collectively plummeted. Crude oil is even more exaggerated. As of press time, the original WTI index fell by more than 8%, falling below $100 per barrel. The European Oil and Gas Index fell 6%, the biggest drop since June 2020.
Domestic, as of the close of 23:00, almost all the main domestic futures contracts fell. Fuel oil fell by more than 7%, low-sulfur fuel oil (LU) fell by nearly 6%, rapeseed oil and palm oil fell by more than 5%, asphalt , liquefied petroleum gas (LPG), plastics, and ethylene glycol (EG) fell by more than 4%, and soybean oil fell by nearly 4%.
As for the reasons for the plunge, some experts believe that the rapid rise in the previous commodity price is mainly caused by factors such as supply tightness, rapid growth in demand, intensified geopolitical risks, logistics bottlenecks, and inventory decline caused by global epidemic prevention and control measures.
has not improved significantly on the supply side at present, and the general decline in commodity prices is mainly due to weakness on the demand side and the withdrawal of speculative funds.
However, the expert believes that the fall in commodity prices will have a positive effect on countries curbing inflation, especially for advanced economies.
The energy weight in the CPI basket of developed economies is significantly higher than that of emerging economies. At present, energy is the main influencing factor in the upward trend of inflation in Europe and the United States. In May, the US energy projects and food projects contributed about half of the CPI increase, and the contribution rate of energy to Eurozone inflation was 53%. As commodity prices fall, the pressure on CPI rise will weaken and the pressure on monetary policy tightening will ease. To avoid the economy falling into recession, the Federal Reserve Federal Reserve may gradually slow down the pace of rate hikes in the fourth quarter.
European and American stock markets have also plummeted
European and American stock markets, several major stock indexes have also fallen sharply.
As of press time, all three major U.S. stock indexes fell, among which the Dow Jones Industrial Average and S&P 500 fell by more than 2%, while the Nasdaq fell by nearly 1%.
US stocks Philadelphia Bank Index fell more than 2.5%, constituent stocks JPMorgan Chase fell 3.0%, Bank of America and ZION fell 2.6%, and CFG also fell more than 2.5%. Among the large banks, Morgan Stanley fell more than 3.6%, leading the decline, Citi fell more than 3.0%, Wells Fargo fell more than 2.6%, Goldman Sachs fell more than 2.2%, Berkshire Hathaway B stocks fell more than 1.9%.
In Europe, the three major important indexes of Britain, France and Germany all fell by more than 2%.
As U.S. stocks seek recovery after a difficult first half of the year, concerns about economic growth have always shrouded investors.
According to the latest forecast of the Bloomberg economy, the possibility of a recession in the United States has soared to 38% in the next 12 months after consumer confidence hits a record low and interest rates soar.
Although the Fed promises to actively fight inflation, the 10-year Treasury yield has declined in recent days. The 10-year Treasury yield is currently close to the 2-year Treasury yield, and the 10-year Treasury yield is a recession indicator that many people on Wall Street are concerned about.
Allianz chief economic adviser Mohamed El-Erian said that the U.S. market has digested the impact of the slowdown and digested the fact that the Federal Reserve was forced to raise interest rates to cause the economy to slow down.
Many industry insiders said the Fed will have to raise interest rates to a much higher level than it is now in order to keep inflation under control as soon as possible, because if they don't, if this continues, inflation will be a big problem, especially for those with the lowest income.
The economic outlook for the second half of the year is not clear. Credit Suisse strategist Jonathan Golub predicted in a report Tuesday that the U.S. would avoid a recession, but lowered its target value for the S&P 500 from 4,900 to 4,300 points at the end of the year. The new goal means Wall Street stocks will recover about half of their losses in the first half of this year.
Faraday Future once soared by more than 60%
However, a batch of new energy vehicle stocks performed well.
Among them, Faraday Future (FFIE.US) rose by more than 60%.
According to the plan, Faraday Future will start mass production of FF 91 electric vehicles in the third quarter of this year, and the time for mass production of new cars is getting closer and closer. In recent times, platforms such as FF's official Weibo, WeChat official account, etc. have been very active. FF Chief Product Officer Jia Yueting also uploaded FF91 related videos on FF's APP social platform to warm up FF91. Driven by
, new car manufacturing companies such as Ideal, , Xiaopeng, and have also risen one after another.
(content is integrated from the 21st century, Wind information, etc.)
