Affected by this, the US stock market fell sharply after opening. At the beginning of the session, the Nasdaq fell by more than 2%, but then a major reversal was staged. The decline of the three major indexes narrowed significantly. As of the close, the Dow Jones Industrial Average fell by 0.67%, the Nasdaq fell by 0.15%, and the S&P fell by 0.45%. Chinese stocks rose against the market, New Oriental rose by nearly 5%, and Ideal Auto and JD rose by more than 2%.
US stocks magically reversed the decline narrowed, and popular Chinese stocks rose against the market
As the US inflation data exploded again, US stocks opened low and closed low on Wednesday (July 13). During the session, the three major indexes narrowed their declines, but the expectation of the Federal Reserve's interest rate hikes has aggravated market concerns.
As of the close, the Dow Jones Index fell 0.67% to 30,772.79 points; the Nasdaq Composite Index fell 0.15% to 11,247.58 points; the S&P 500 fell 0.45% to 3,801.78 points.
Large technology stocks rose and fell mixed, (ranked by market value) Apple fell 0.25%, Microsoft fell 0.37%, Google fell 2.32%, Amazon rose 1.08%, and Meta rose 0.13%.
Most new energy vehicle stocks closed higher, with Tesla up 1.70%, Lucid up 0.93%, and Rivian up 2.02%.
Chinese stocks rose against the market and most of them closed higher. The Nasdaq Golden Dragon Index rose 1.31% to close at 7546.83 points.
Ctrip rose by more than 6%. On July 13, Ctrip released the "2022 Summer Tourism Market Trend Report" showing that the current air ticket summer travel search index has tied for 2019, and the hotel market has recovered to 70% last year. The proportion of cross-provincial hotels during the summer is expected to exceed half, and parent-child hotel bookings have increased by 20% compared with before the epidemic. At present, driven by various measures to assist production and promote consumption, the domestic tourism market has entered the process of recovery. The report shows that as of July 12, the total number of orders for summer travel products booked through Ctrip in the past half month has increased by more than nine times month-on-month, with a rapid growth.
TSMC rose more than 2%. In terms of news, analyst Ming-Chi Kuo tweeted, "My latest survey shows that TSMC will be the exclusive supplier of Qualcomm's 5G flagship chips in 2023 and 2024, which is a super win-win situation for the two companies." According to Qualcomm's plan, several Snapdragon 8 and Snapdragon 8+5G flagship chips will be iterated in 2023 and 2024. Starting from the Snapdragon 8+Gen1 chip, Qualcomm began to use TSMC to produce 5G flagship chips. Qualcomm Snapdragon 8Gen2 is the successor of Snapdragon 8Gen1. It is expected to be released in November this year and will be manufactured by TSMC, which may still use the 4nm process.
Even though the White House had spoiled before, the year-on-year increase in CPI in June announced before the market still surprised the market. In a statement on inflation, U.S. President Biden said the data is unacceptable. Biden granted the Fed more policy space to fight inflation in his statement.
CME’s Fed observation tool shows that the probability of the Fed raising interest rates by 100 basis points in July is more than 70%. During the session, Atlanta Fed Chairman Bostic said when asked about the possibility of a 100 basis point rate hike in July, "Everything is possible."
High inflation combined with the central bank's austerity policy, the US economy seems to be shaking. Market analysis said the Dow Jones Industrial Average led the decline means concerns about the recession are dominating market sentiment. Charles Schwab chief investment strategist wrote that there was no turning point in U.S. inflation, which only increased the Fed's tightening efforts, "I think recession is inevitable." The Fed's economic status Beige Book released within 1
days shows that economic activity has expanded at a moderate pace since mid-May; several regions reported signs of slowing demand, and respondents in five regions said they were worried about the increased risk of recession.
Yesterday, the International Monetary Fund (IMF) lowered its U.S. economic growth expectations in 2022 and 2023 to 2.3% and 1%, respectively, highlighting the deterioration of the U.S. economic growth prospects under the background of high inflation.
European stock indexes fell across the board. The German DAX30 index fell more than 1%
European time on Wednesday, major European stock indexes fell across the board. As of the closing, the UK FTSE 100 index closed at 7156.37 points, down 53.49 points from the previous trading day, down 0.74%; the French CAC40 index closed at 6000.24 points, down 43.96 points from the previous trading day, down 0.73%; the German DAX30 index closed at 12756.32 points, down 149.16 points from the previous trading day, down 1.16%.
Market risk preferences heated up, Brent oil rose slightly but still closed below $100
On July 13, US crude oil futures rose 0.46 USD, with a settlement price of USD 96.30 per barrel; Brent oil futures rose 0.08 USD, at USD 99.57 per barrel. The three major U.S. stock indexes rose from the day to day, and market risk appetite heated up; at the same time, the surge and decline of the U.S. dollar also supported oil prices. Investors have been selling oil recently, fearing that aggressive rate hikes to stop inflation will slow economic growth and hit oil demand. However, the physical goods market is still tight. Key indicators such as Fortis and U.S. Intermediate crude oil trade prices higher than the futures market, which is different from the situation in the futures market. The futures market has been affected by inflation data that predicts that central banks of major countries will raise interest rates further.
Strong CPI data caused the US dollar to fall. Gold reversed its recent decline and closed slightly higher
After the June CPI data that was higher than market expectations was released, the US dollar index's rise fell, giving gold prices a certain amount of support. Reversing the recent downward trend, it closed slightly higher.
htmlGold futures for August delivery rose $10.70 to close at $1,735.50 per ounce, up 0.6%, after falling to $1,704.50. FactSet data shows that before turning higher, the price of the most active contract is expected to hit its lowest closing level since March 31, 2021. September silver futures rose 24 cents to $19.194 an ounce gain of 0.85%, closing Tuesday at its lowest level since July 2020.Platinum futures for October delivery rose $9.70 to $837.80 an ounce gained 1.2%. Palladium futures for September delivery fell $44.20 to $1,971.40 an ounce, down 2.2%. Copper futures for September delivery rose 3 cents, or nearly 1.1%, to $3.3225 per pound.
As precious metals analysts expected, gold prices fell immediately after the U.S. consumer price index was higher than expected in June, but somewhat unexpectedly recovered lost ground and turned higher.
