Thinking of the US stock surged in the previous two days, everyone was excited. Although the rise of US stocks is not closely related to us, people still expect US stocks to rise sharply. In this way, next Monday, A shares will open at least better, and it will not open low. It can be said that during this 7-day holiday, although A-shares are in a state of closing, the trend of the foreign market has always affected everyone's nerves, after all, this will somewhat affect our market.
I remember that the Dow Jones Industrial Average rose for two consecutive days on October 3 and 4, with a cumulative increase of more than 5%. People once imagined that this trend would be best to continue until Friday's closing, so that the A-shares will be fine next Monday. Unfortunately, the Dow Jones Industrial Average started to reach 30,000 points the day before yesterday and it was a little unsteady. From a technical perspective, it can be understood. After all, this integer mark is supported when it falls, so it becomes a pressure when it rises. My idea is that the US stock market seems to have never talked about technology, only news-driven. So after 2 days of this big rise, there are still some influencing factors.
Why did the US stock market plummet again? What happened?
From the trend of Dow Jones Index , after experiencing the previous two big positive lines , both yesterday and the day before yesterday were in a pause, especially yesterday, the Dow Jones Index fell by 1% again, giving people the feeling that it suddenly came to an abrupt end after two days of rising. Why is this happening?
I think the core is still the crude oil futures price. You didn't find that the previous WTI crude oil futures price was as low as US$76 per barrel. The decline in crude oil price is essentially everyone's expectations of a global economic recession and an expectation of the decline of the US economy. However, it unexpectedly can help the United States reduce inflation, which will affect the pace of the Federal Reserve's interest rate hike . If crude oil prices fall further, the pressure on rising prices will be greatly reduced. Fed is likely to not have to raise interest rates in such a high posture. Then it will be a change for global liquidity, which will of course be a good thing for US stocks.
is just when the decline in crude oil prices is at a critical critical moment. OPEC+ and Russia have shouted the slogan of reducing production, which has prompted the probability of rebounding crude oil prices to increase in the future, which will once again push up US inflation in disguise. The expectation of a significant interest rate hike in the Federal Reserve will increase again. In this case, US stocks will naturally face pressure.
From this phenomenon, we can draw the conclusion that the interests of oil-producing countries are almost tied together, which forms a game with major economies around the world. The sharp drop in crude oil prices is of course a good thing for the global economy represented by the United States. It reduces costs and can play a positive role in the economic recovery. However, crude oil is a non-renewable energy source, and the final number of crude oil is the oil-producing countries. In the context of the fact that new energy has not yet become a trend, the oil-producing countries are the winners.
Then, this means that the market will return to its original state in the future. The expectation of interest rate hike in the United States will continue to be strong. There is still great uncertainty in the US stock market. The rise of US stocks in the past two days was the slowdown in the Fed's expectation of interest rate hikes. It depends entirely on the performance tonight. If the US stock market can swallow the adjustments in the past two days with a big positive line, then everything should be a different matter. At least the optimistic fundamental foundation for A-shares is more solid.
From Hong Kong stock opens on the opening of the market, looking at the performance of A-shares next Monday
Today Hang Seng Index opened directly, forming a clear downward gap on the trend chart. By 11:30 am, the chart was at a low level after opening low, and there was no upward force. From this trend, it can be judged that Hong Kong stocks are still following the US stock market, and they are still very alert to the Fed's interest rate hike. As for the impact of other factors in the past two days, it seems far less than the impact of the decline of the US stock market.
This actually brings great uncertainty to A-shares that open next Monday, and experiencing fluctuations may be inevitable. However, I am still encouraging you here. US stocks and European stock markets have come down from highs. A-shares themselves have undergone a long period of adjustment and are currently at a relatively low of 3,000 points. There is still a probability that things will turn back. So don’t be too worried by the bad foreign market, let alone US stocks and Hong Kong stocks have not seen new lows. At present, it is just an adjustment after a big rise.
Disclaimer: The content in the article is for reference only and does not constitute any operational suggestions or prompts. Please be cautious when there are risks in the stock market and investment!
