China News Client Beijing March 14th (Xie Yiguan) witnessed the week of financial market history!
On March 13th (Friday), overnight the European and American stock markets went crazy again! European stock markets soared 9% at one time, and the daily limit of US stock index futures melted. After US President Trump announced a number of measures to deal with the epidemic, U.S. stocks staged a violent pull in the end, rising more than 9%.
From "Black Monday" to "Black Week", global financial markets have been plagued by the new crown pneumonia epidemic and the oil price warhammer, and Wall Street people have lamented that "the market has entered an unknown state."
Local time on the New York Stock Exchange on March 12. Photo by Liao Pan of China News Agency
"It will plummet, it will plummet!"
On Monday, U.S. stocks plummeted and the S & P 500 index fell more than 7%, triggering a second meltdown in U.S. stock history.
On Tuesday, U.S. stocks staged a major upturn, with the three major stock indexes all up nearly 5%.
On Wednesday, US stocks fell overnight into a technical bear market.
On Thursday, U.S. stocks staged a "Black Thursday". The sharp fall in the S & P 500 triggered a second U.S. stock market meltdown this week. The stock markets of 11 countries in the world plummeted and melted.
Stimulated by news reports from the United States on Friday, the three major U.S. stock indexes soared more than 9%, the biggest single-day gain in the financial crisis.
Regarding the performance of the global stock market, especially the US stock market in the past week, some netizens bluntly said, "Yesterday I was in ICU, and today I got KTV."
Global financial markets "KTV" on Friday
On the evening of the 13th Beijing time, European and American financial markets rebounded sharply. The three major US stock indexes rebounded sharply, and the Nasdaq and Dow futures rose more than 5%, triggering trading restrictions. The three major U.S. stock indexes opened sharply higher than 5% and pulled back intraday. After the announcement of US President Trump's announcement that the country has entered a state of emergency, the pullback became more apparent, and the Dow almost turned green.
March 13, the Dow chart.
However, Trump held a press conference that afternoon to announce a number of measures to deal with the epidemic. Subsequently, the US stock market rose violently in the end, and the three major US stock indexes eventually rose by more than 9%, all hitting their largest increase since October 2008 (financial crisis).
At the close, the Dow rose 1985.00 points, or 9.36%, to 23185.62 points; the S & P 500 rose 230.38 points, or 9.29%, to 2711.02 points; the Nasdaq rose 673.08 points, or 9.35%, to 7,874.88 points.
Although U.S. stocks staged a big rally on Friday, they did not digest the declines of the previous few days. Looking at the weekly decline, the Dow fell 10.36%, the Nasdaq fell 8.17%, and the S & P 500 index fell 8.79%.
This week, European stock markets hit their biggest weekly decline since the 2008 financial crisis. On the 13th, the European stock market was also frightened. The stock index opened higher and lower, and once rose by more than 8%, and then fell sharply. In the end, the German DAX index closed up 0.77% and fell 20.01% over the week; the French CAC40 index closed up 1.83% and down 19.86% over the week; the British FTSE 100 index closed up 2.46% and down 17.97% over the week.
On March 13, the German DAX index chart.
Stock markets in most Asia-Pacific countries opened lower and lowered on the 13th, and bottomed out. For example, the Philippine stock market, the Indian stock market and the Thai stock market, which have seen plunge and meltdown, resumed trading, and then rose to popularity. However, the stock markets of major countries still closed down, and the weekly decline also hit a record high.
For example, the Nikkei 225 Index closed down 6.08%, and this week's cumulative decline of 15.99%, the largest weekly decline since the week of October 10, 2008; the Korea Composite Index fell 3.47% to 17.7.74 points, a record low of nearly 7 years, This week has fallen by 13.17%, and this year has fallen by 19.39%.
Global stock markets plummeted and A shares were also affected. The Shanghai Composite Index fell 4.85% this week, the Shenzhen Component Index fell 6.49%, and the GEM Index fell 7.4%. However, from March 12th to 13th, the external stock market staged a "melt tide", but the A-shares were "lit." On the 12th, the Shanghai Index fell 1.52%, and on the 13th, the decline was only 1.23%.
In addition, international oil prices rose collectively on Friday. NYMEX crude oil futures closed up 3.91% at 33.23 US dollars per barrel, while oil distribution closed up 3.27% at 36.28 US dollars per barrel. But it still hasn't recovered its lost ground. It fell 19.5% and 19.7% respectively this week, both the biggest weekly decline since December 2008.
NYMEX crude oil futures trend day chart.
U.S. President Trump said on the 13th that he has instructed the U.S. Department of Energy to purchase crude oil for its strategic oil reserves to support the oil industry, which was hit hard by a price war launched between OPEC and its allies.
Under the aversion of risk aversion, on the 13th, longer-term U.S. Treasury yields rose sharply. The 2-year U.S. Treasury yield rose 2.1 basis points to 0.506%, and the 3-year U.S. Treasury yield rose 4 basis points to 0.611%. 10 The yield on U.S. Treasury notes rose 15.4 basis points to 0.97%, and the yield on 30-year U.S. Treasuries rose 10.4 basis points to 1.547%.
The risk aversion effect of gold and silver is greatly reduced. COMEX gold futures closed down 3.86% on Friday at US $ 1528.9 per ounce, down 8.58% this week; COMEX silver futures closed down 8.25% at US $ 14.685 per ounce, down 14.93% this week, the largest weekly decline since September 2011.
"Water release! Short selling is forbidden!"
Why does the financial market "stop diarrhea" on the 13th? On the 12th, the stock markets of many countries plummeted and "melt-off". Countries also began to prohibit shorting the stock market. According to incomplete statistics, six countries have now issued similar regulations.
Specifically, the Spanish market regulator requested a ban on short-selling of 69 stocks; the chairman of the Thai Stock Exchange also stated that the short-selling rules were temporarily adjusted; the Italian Securities and Exchange Commission announced a ban on short-selling stocks; the UK Financial Conduct Authority temporarily banned some short-selling instruments and Trading, including banning short-selling stocks; South Korea bans short-selling stocks for 6 months.
Turkey announced on February 28 that it would ban short selling on the Istanbul Stock Exchange. Germany said it was considering a possible ban on short selling.
Data map.
In addition to prohibiting short selling, many central banks have also begun to release water to increase market liquidity.
On the 13th, the G-20 finance ministers and central bank governors agreed in a recent statement that they will use all feasible policy tools, including appropriate fiscal and monetary measures.
Previously, many countries have taken successive actions, for example, the New York Federal Reserve launched repurchase operations including bonds of various maturities; the European Central Bank has increased quantitative easing, and will increase the size of asset purchases by an additional 120 billion euros by the end of the year. ); The Norwegian central bank directly cut the benchmark interest rate by 50 basis points to 1%; Japan proposed to buy 500 billion yen of Japanese government bond repurchase futures.
On the 13th, the People's Bank of China announced a targeted reduction on March 16 and released long-term funds of 550 billion yuan. The market generally expects that from the recent monetary policy that may be implemented, the probability of another MLF rate cut in March is increasing.
Trump also shouted to the Fed on the 13th, "the Fed must eventually lower interest rates to levels comparable to other central banks." US Treasury Secretary Mnuchin said the Fed and the Treasury are striving to provide "unlimited liquidity."
The Northeast Securities Research Institute pointed out that a new round of global interest rate cuts has begun. "It is necessary to be wary that Japan and Europe's monetary policy is currently in a state of negative interest rates and zero interest rates, and there is little room for interest rate cuts and little effect."
The Guotai Junan team believes that after this round of interest rate cuts, there is very limited space for subsequent interest rate cuts for the global central bank, but referring to the words of Fed Chairman Powell: "We recognize that interest rate cuts will not reduce the infection rate or repair the broken supply chain. The liquidity brought by interest rate cuts may be difficult to offset the impact of the epidemic on demand.
"The biggest problem in the market right now is not the virus epidemic, but the emerging liquidity crisis. Frankly speaking, it is terrible and it has really knocked down investor confidence in the market," said Kent Engelke, chief economic strategist at Capitol Securities Management.
What will happen to global stock markets when many countries enter a state of emergency?
According to the WHO report, the number of confirmed cases of new coronary pneumonia worldwide on the 13th increased by 7,499 cases to 132,758 over the previous day; the number of death cases increased by 342 to 4,955 over the previous day. In the face of the epidemic, many countries have declared a state of emergency.
Incomplete statistics, fifteen countries including the United States, Italy, Spain, Bulgaria, Poland, Latvia, the Czech Republic, Colombia, Ecuador, Slovakia, Hungary, the Philippines, Guatemala, Palestine, and Lithuania have declared a state of emergency.
The measures adopted mainly include prohibiting entry of citizens of countries with severe epidemics, suspension of schools, closure of large places, and prohibition of large public activities.
On March 13, local time, Trump announced at a press conference at the White House Rose Garden that the United States has entered a state of emergency due to the new crown pneumonia epidemic. Photo by Chen Mengtong
With the spread of the new crown pneumonia epidemic and the multi-country release of water to rescue the market, will the global stock market continue to stage a "roller coaster" market?
European Central Bank President Lagarde said the spread of the new crown pneumonia epidemic has exacerbated market volatility and will have a great impact on the economy.
Peter Tuz, president of Chase Investment Counsel, Virginia, said: "If we see the number of new crown virus cases stabilizing, this could be a fairly short-term bear market. But if we don't see this, it may continue For months. "
Ryan Detrick, senior market strategist at LPL Financial, noted, "With the onset of the new crown virus, we realize that the long-term data will 'fall off the cliff'. The crown virus will have a lasting impact on the economy, but we do not Think that the end of the world will come. "
The Nobel laureate in economics, Robert Shiller, the economist who first proposed the concept of "irrational prosperity", also warned recently that the market collapse is far from over and that panic has just begun. Global stock markets and the economy are now Extremely vulnerable.
"The epidemic is destroying business activity and willingness to invest, and 'the fact-based phobia epidemic does not necessarily keep pace with scientific reality, but it is often impressive, which is very dangerous for the stock market.'" Robert Schiller pointed out .
Summary of the rise and fall of important global stock indexes this week.
Ren Zeping, chief economist of the Evergrande Group and president of the Evergrande Research Institute, said that we are on the verge of the global economic and financial crisis, and the global pandemic is the fuse that is fundamentally the vulnerability of the global economic and financial society. From the perspective of the financial cycle, this may be a total liquidation, which will come sooner or later.
We will wait and see what happens to the global stock market next week. (Finish)