On Tuesday, the US technology and medical health sectors rebounded strongly at the end of the session, driving the index to stabilize and rebound temporarily. At the close, the Nasdaq rose by 1.75%, the S&P 500 index rose by 0. 16%, and the Dow fell by 0.42%, down nearly 2.4% in early trading.
International oil prices fell sharply, and US crude oil futures prices fell below $0/00 per barrel for the first time in the past two months. Affected by this, the US energy sector continued to weaken.
Nasdaq rebounded strongly under the leadership of large technology stocks.
On July 5, local time, US stocks opened lower and went higher, and the three major indexes closed mixed.
At the close, the Dow Jones index fell 129.44 points, or 0.42%, to 30,967.82 points, and once fell more than 700 points in early trading. The Standard & Poor's 500 Index closed up 6.06 points, or 0. 16%, at 38310.39, down nearly 2.2% at the beginning of the session. The Nasdaq Composite Index closed up 194.39 points, or 1.75%, at1/322.24 points. The first session fell below 1.9% with an amplitude of 3.7 1%.
On the surface, large-scale technology stocks rose across the board, which could drive the Nasdaq to rise strongly. Meta, the parent company of Facebook, rose more than 5%, Google rose more than 4%, Amazon, NVIDIA and Nye rose more than 3%, and Apple and Microsoft rose more than 1%. Tesla closed up 2.55% and fell more than 4% at the beginning of the session.
On the same day, the European Parliament overwhelmingly passed the Digital Services Law and the Digital Market Law, which will take effect around 5438+0 in June 2024, and are considered to be mainly aimed at American Internet giants such as Google, Apple and Amazon.
It is reported that the Digital Services Law stipulates that large portals and social media companies operating in the EU must strengthen the censorship of illegal content and the protection of user data. "Digital Market Law" requires large-scale platform companies called "gatekeepers" not to abuse their dominant market position to suppress other competitive enterprises, and not to forcibly push advertisements or install application software without users' permission. Enterprises that violate the above two laws will be severely punished.
Popular China stocks were among the top gainers, with Li and Xpeng Motors up more than 6%, Alibaba and Weilai up more than 3%, Pinduoduo up 2.78%, and JD.COM, Netease and Shell down more than 65,438+0%.
Since the beginning of this year, the Federal Reserve has raised interest rates many times, and the major indexes of US stocks recorded the biggest decline in the first half of the year in about half a century. In the early morning of Thursday, Beijing time, the Federal Reserve will announce the minutes of the June meeting on interest rates, and the market will pay close attention to FOMC members' attitude towards monetary policy.
The energy industry has suffered setbacks.
WTI crude oil futures fell below $65,438+000.
On the 5th, energy stocks continued to weaken, leading the decline in US stocks. Among them, Shell and ConocoPhillips fell more than 6%, ExxonMobil and Total fell more than 3%, and Chevron and Western Petroleum fell more than 2%.
International crude oil futures prices fell sharply. In August, WTI8 crude oil futures closed down 8.93 US dollars, down 8.24% to 99.50 US dollars/barrel. This is the first time in the past two months that the US crude oil futures price has fallen below 100 USD/barrel. Brent September crude oil futures closed down 8.86 USD, or 7.94%, to 102.77 USD/barrel, both the biggest one-day drop since mid-March.
Crousaz, global director of OPIS, said that the growing public concern about the economic recession is the main driving force for the recent selling of oil and gasoline futures. Citigroup's report predicts that if the global economy slows down to recession this year, Brent crude oil futures prices may fall to $65 a barrel by the end of this year.
According to the latest quarterly analysis of natural gas market released by the International Energy Agency, global natural gas consumption will decrease slightly this year and increase slowly in the following years due to soaring prices and possible further reduction of Russian natural gas supply. According to the report, the global natural gas consumption is expected to decrease by 0.5% compared with the level of 202 1 this year; It is estimated that by 2025, the global natural gas demand will only increase by 654.38+40 million cubic meters compared with 202 1. The annual growth in 2002/kloc-0 will reach17.5 billion cubic meters.
At the same time, the International Energy Agency's forecast for the growth of natural gas demand in 2024 is lowered by 60% compared with the previous forecast. According to the report, this is mainly due to "weak economy and small-scale energy transformation from coal or oil to natural gas".
It is worth noting that the Ministry of Industry, Trade and Resources of Korea announced on the same day that it plans to increase the proportion of nuclear power in Korea's national energy structure to over 30% by 2030. 202 1, accounting for 27.4%. The department also announced the resumption of the construction of two nuclear reactors. According to CCTV news reports, after taking office, South Korean President Yin Xiyue rejected the previous government's plan to phase out nuclear power, and promised to increase investment in the nuclear power industry, so that South Korea can regain its status as a major exporter of safe nuclear reactors.
Outside the crude oil market, the futures of major agricultural products also fell sharply. The most active 65438+February contract on the Chicago Board of Trade corn market closed at $5.785 per bushel, down 29 cents or 4.77% from the previous trading day. September wheat contract closed at $8.07 per bushel, down 39 cents or 4.6 1% from the previous trading day. Soybean 165438+ 10 contract closed at $0/3.16 per bushel, down 79.25 cents or 5.68% from the previous trading day.
US bond yields are upside down, and concerns about economic recession are not diminished.
The yield of US 2-year Treasury bonds is higher than 10-year yield, and it is higher than 5-year yield for the first time since March 2020. According to market analysis, this curve inversion phenomenon indicates that the economic slowdown will eventually lead to the downward trend of short-term interest rates. However, the yield of 10-year US bonds dropped sharply below 2.9%, which may indicate that the rate hike may slow down in the second half of the year.
In the foreign exchange market, the US dollar index rose 1.3% in the day, hitting a 20-year high of 106.796. After hitting the lowest level since the end of 2002, EUR/USD expanded its decline and now falls to 1.0267. According to market analysis, the weak economic recovery in Europe, rising energy prices and high debt ratio in southern European countries are the main reasons for the weakening of the euro.
On July 5th, the Organization for Economic Cooperation and Development (OECD) announced that the average inflation rate in OECD countries measured by the consumer price index reached 9.6% in May, the highest since August 1988. The reason for high inflation is the rise in energy and food prices. Among them, the average price of energy increased by 35.4%, and the average price of food increased by 12.6%. Among them, Turkey, Estonia and Lithuania have the highest inflation rates, and Turkey even reaches 73.5%. While Colombia, Japan, Luxembourg and the Netherlands maintained relatively stable prices.
The latest financial stability report issued by the Bank of England warned that the economic prospects of Britain and the world are "seriously deteriorating". Affected by the situation in Russia and Ukraine and other factors, the cost of energy and fuel around the world is rising rapidly, which makes the overall cost of living rise even faster. In response to inflation, many central banks around the world raise interest rates, and debt-ridden governments will be affected by interest rate hikes. This situation has already appeared in some euro-zone countries.
The Bank of England pointed out that the country's banking industry has enough capital and liquidity to support families and enterprises to fight against deteriorating economic expectations, but banks must increase reserve funds to meet the challenges. From now on, banks will be required to set aside an amount equivalent to 2% of their total assets as a buffer fund instead of the normal 1%.
US factory orders in May increased by 65,438+0.6% month-on-month, exceeding expectations, with the previous value of 0.30%. JonathanGolub, a strategist at Credit Suisse, believes that the US economy may avoid recession, but he lowered the expected performance of the Standard & Poor's 500 index at the end of the year, from 4,900 to 4,300. BillNorthey, senior investment director of Bank of America Wealth Management Company, also said that the risk of recession exists, and the possibility of it appearing later this year is increasing, perhaps early next year.
The second quarter earnings season of US stocks is about to begin, and companies such as Pepsi, Delta Air Lines, JPMorgan Chase and Citigroup will disclose their latest results next week. The Morgan Stanley report pointed out that compared with macroeconomic performance, the upcoming US stock earnings season is an important test for the future trend of US stocks.
The British Minister of Health and Chancellor of the Exchequer resigned because they lost confidence in the Prime Minister.
According to CCTV news, on the 5th local time, British Health Minister Said Dzhavid and Finance Minister Ricky Sunak resigned from the government because they lost confidence in Prime Minister Johnson.
Dzhavid said on social media that he had submitted his resignation to Prime Minister Johnson. Dzhavid said that it is a great honor to play this role, but it is a pity that he can't continue to work with his conscience.
Sunak said in his resignation: "The public expects the government to manage the country correctly, competently and conscientiously. I believe that these standards are worth fighting for, and our country is facing great challenges, which is why I resigned. "
On the same day, Prime Minister Johnson publicly apologized for his negligence in employing people and appointing Christopher Pincher, the deputy whip of the Conservative Party, as a government post.
Christopher Pincher, the deputy whip of the Conservative Party appointed by Johnson, was exposed as a "salty pig hand" and resigned on June 30. However, Pincher was subsequently exposed to more misconduct, causing public opinion to question whether Johnson knew his behavior and still entrusted him with a heavy responsibility.
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