China Fund News reporter Jin Youzhi
The situation in Russia and Ukraine, which has plagued the market for a long time, has finally eased, and the two sides have negotiated to maintain a ceasefire agreement. The Russian stock market also "hi", at one point soared 8%.
U.S. stocks, on the other hand, did not perform well, with the Dow plunging 765 points during the session. Technology stock leader Tesla also fell sharply, even after releasing a bright financial report, last year's annual net profit achieved a 665% increase, the market is still not satisfied, crazy smashing made Tesla plunge 11%.
In addition to the large fluctuations in the stock market, the energy market is not calm late at night. The U.S. gas February contract suddenly went in a historic frenzy, surging 70 percent intraday, creating the biggest gain ever.
Finally talked about! Russia and Ukraine maintain a ceasefire
Russian stocks soar 8%
Late at night, the Russian stock market, which has recently fallen sharply, suddenly surged, and the Russian RTS index rose 8% intraday.
On the news side, Russia and Ukraine agreed to maintain the ceasefire agreement in the negotiations.
Moscow said talks with Ukrainian, German and French officials were "not simple" and that despite their differences, they supported a ceasefire agreement in eastern Ukraine in 2014, even as troops on both sides were preparing for war.
Ukrainian negotiator Andrei Yermak said all parties at the meeting supported a permanent ceasefire and that Ukraine was prepared to negotiate around the clock to avoid war and ease tensions in the border areas.
Earlier, ukraine and Russia held Normandy talks with representatives of Germany and France at the Elysee Palace in Paris on Wednesday as tensions escalated in Eastern Europe. It was also Moscow's first talks since the latest military build-up began on the Ukrainian border.
Before the talks, Andrei Yermak, an adviser to Ukrainian President Volodimir Zelensky, had said the meeting was "a strong signal of readiness for a peaceful settlement."
While the talks were in paris, French Foreign Minister Jean-Yves Le Derian told the French Senate, "We are taking all necessary measures to start the détente process." ”
It is reported that the talks lasted more than 8 hours.
Full-year profit soared 665%
Tesla plummeted 11 percent, wiping out nearly 700 billion in market value
When the Russian stock market soared, the performance of the US stock market was not very good, and tesla, the leader of technology stocks, suddenly fell sharply in the intraday.
Tesla just reported strong quarterly results, but the bearish factor in the supply chain caused its stock price to fall by more than 11%. On that day, its market value evaporated by $108.7 billion, or about 690 billion yuan.
According to Tesla's latest quarterly report, in the fourth quarter of 2021, Tesla achieved revenue of $17.72 billion, an increase of 65% year-on-year; net profit of $2.321 billion, an increase of 760% year-on-year; and earnings per share of $2.05, compared with $0.24 in the same period last year.
From the perspective of the whole year, Tesla achieved total revenue of $53.7 billion in 2021, an increase of 71% year-on-year; and achieved a net profit of $5.519 billion, an increase of 665% year-on-year.
In terms of deliveries, tesla delivered a total of 308,600 electric vehicles in the fourth quarter of 2021, and a total of 936,000 vehicles were delivered in the whole year, an increase of 87% compared with 2020. Tesla also expects evictions to grow 50% year-on-year in 2022.
Although the overall performance exceeded expectations, Tesla said that due to supply chain factors such as chip shortages, new models will not be produced in 2022, which makes the market full of concerns about its longer-term performance.
Musk said these factors ( referring to supply chain issues such as chip shortages ) are expected to remain in place in 2022 and will only be alleviated next year.
The market is full of expectations for the Tesla electric pickup truck Cybercruck, but Tesla announced that it will not produce new models this year, which makes the cybercruckeruck time once again postponed. Previously, the model was first planned to be launched in 2021.
The Dow hit more than 765 points during the session
The three major stock indexes opened high and went low and closed down
Tesla's slump has seriously dragged down the broader market.
The U.S. stock market was originally high, and the Dow once touched the high of 34773.32 intraday, but near the end of the session, the Dow shocked downwards, once touching the low of 34007.78, down 765.54 points compared with the high.
As of the close, all three major stock indexes closed lower, with the Dow down 0.02 percent at 34,160.78, the S&P 500 down 0.54 percent at 4,326.50, and the NASDAQ down 1.40 percent at 13,352.80.
As the stock market fell, gold also fell, falling below the $1800/oz mark.
"Crazy short rolling" makes history
U.S. natural gas surges 70% on disk
At a time when the stock market is fluctuating sharply, there are also big things in the energy market.
On Thursday afternoon, EST, the U.S. energy market suddenly saw a crazy short-selling market that was rare in history, and U.S. natural gas futures (February contracts) suddenly surged 70% intraday and soared to an all-time high.
At the close, its gains fell back to around 38 percent.
According to Bloomberg, a spokesman for CME Group confirmed the price increase, the biggest gain since the introduction of the natural gas futures contract in 1990, while the more actively traded March contract rose less than 10 percent.
The colder weather forecast, coupled with the sparse trading volume as the contract was about to expire, led to a sudden surge in the February contract for natural gas futures. Starting late Friday, a strong storm called Knoll Easter will emerge in the western Atlantic, bringing heavy snow and strong winds to parts of the East Coast, according to the Weather Channel. As heating demand climbs, the storm could push up demand for natural gas.
In addition, the decline in energy inventories is also an important reason for the soaring price of natural gas. The U.S. Energy Information Administration reported Thursday that domestic fuel supply had fallen by 219 billion cubic feet in the week ended Jan. 21. IHS Markit had predicted a decline of 209 billion cubic feet. Analysts pointed out that the weekly decline in fuel supply has caused U.S. inventories to be more than 10 percent lower than last year.
Phil Flynn, senior market analyst at Price Futures Group, commented, "That's why it's so dangerous to short natural gas in the winter. The analyst also added that this surge in contracts in February was another classic short selling that the gas market famously said, and that those who bet on low prices did not take into account that it was winter, and that "going short at a time of imminent expiration is particularly dangerous." ”
Tariq Zahir, global macro project portfolio manager at Tyche Capital Advisors, said it was not surprising that natural gas prices had soared as they did on Thursday.
Chinese stocks fell
China's Golden Dragon Plunges 4.5%
As U.S. stocks opened higher and lowered, Chinese stocks also fell on Thursday. JD.com fell 6.23%, Pinduoduo fell 6.01%, Bilibili fell 5.79%, Didi fell 4.18%, iQiyi fell 4.07%, Weibo fell 3.58%, Baidu fell 3.08%, NetEase fell 2.29%, Alibaba fell 1.39%.
The NASDAQ China Golden Dragon Index fell 4.5%.
Edit: Amman