On Wednesday, the prospect of aggressive interest rate hikes by the Federal Reserve was still affecting the market, and the US stock market closed down collectively for four consecutive trading days, with the three major indexes all falling by more than 4% in August. On Friday, after Fed Chairman Powell gave a hawkish speech, the US stock market has been under pressure so far. Powell stressed that while the risk of a recession is higher, interest rates must be raised further until inflation is contained.
According to a comprehensive Xinhua News Agency and CCTV news report, the Russian side reported on August 31 that the Russian army destroyed multiple command structures and ammunition depots of the Ukrainian army in Kherson and Donetsk and other places in the past day, and intercepted more than 50 Ukrainian rockets of various types. The Ukrainian side said that the Ukrainian army carried out operations on the southern front, Donetsk and other places and attacked the Russian army on the southern front. The White House said the G7 finance ministers would meet on September 2 to discuss proposals to cap the price of Russian oil.
The three major U.S. stock indexes closed lower en masse
Most of the popular Chinese stocks rose
The three major U.S. stock indexes closed down across the board on the 31st, and as of the close, the Dow fell 0.88% to 31510.43 points, the S&P 500 index fell 0.78% to 3955 points, the Nasdaq fell 0.56% to 11816.2 points, and the US stock market fell for four consecutive days.
Source: Wind
The popular Chinese stocks performed brightly, with Yiren Jinke up 54.59%, Zhifu up 33.28%, and Shang multiplier up 11.43%; In terms of decline, Yixian E-commerce fell by 12.31%, and Tiandihui fell by 12.06%. Chinese-listed new energy vehicle stocks rose and fell, with WEILAI Up 0.61%, Xiaopeng Motors up 1.48%, and Ideal Auto down 0.1%.
Europe's three major stock indexes closed down across the board, with the German DAX down 0.97% at 12834.96, the French CAC40 down 1.37% at 6125.1, and the UK FTSE 100 down 1.05% at 7284.15.
Source: Wind
In terms of commodities, international oil prices fell on August 31. As of the close of the day, light crude oil futures for October delivery on the New York Mercantile Exchange fell $2.09, or 2.28%, to close at $89.55 a barrel; Brent crude futures for October delivery in London fell $2.82, or 2.84%, to close at $96.49 a barrel.
In addition, European benchmark Dutch october gas futures prices closed down 9.6 percent on Wednesday to 239.91 euros/MWh, down 13 percent at one point during the day. Due to light trading, the market is very volatile.
The 10-year Treasury yield rose as high as nearly 8 basis points to 3.19 percent, a two-month high. The yield on the 30-year long bond also rose 8 basis points to 3.3%. The two-year yield, which is more sensitive to monetary policy, rose as high as 3.5 basis points, up 3.50 percent to a fifteen-year high. Short-term bond yields remain significantly higher than long-term bond yields, underscoring concerns about an impending recession.
Bond yields in major European countries have hit their biggest monthly gains in decades, largely due to the gas crisis exacerbating inflation concerns and pushing up expectations of hawkish interest rate hikes at the European Central Bank, which some analysts say are closely following the development of the energy market.
Cleveland Fed President Mester said wednesday that the federal funds rate is expected to be above 4 percent next year. The current federal funds rate ranges from 2.25%-2.5%, which means there may be at least 150 basis points of room for improvement.
U.S. Democratic Senator Elizabeth Warren said she was very concerned that the Fed would plunge the U.S. economy into recession and that the Fed's interest rate hike policy would put people out of work; The high inflation rate in the United States is caused by supply chain problems, the COVID-19 pandemic, and the Russian-Ukrainian conflict, and Powell has no solution to these fundamental problems.
Market participants believe that next, the non-farm data that will be released on Friday and the CPI data that will be released on September 13 are worth paying attention to. Florian Ielpo, chief macro officer of Lombard Odier Asset Management, said that the market is currently full of many conflicting elements, which instinctively push investors to enter the market and bottom, but the fundamentals of the market show that the situation will deteriorate further, and this imbalance is more likely to induce market volatility.
The Office of the Investment Director (CIO) of UBS Wealth Management released a report saying that in the face of the current high inflation environment, investors have underestimated the willingness of central banks such as the Federal Reserve to tighten policy, and the market's reaction to the latest remarks of Fed Chairman Powell is in line with this observation. The agency believes the Fed will raise interest rates by another 100 basis points before the end of the year, and if U.S. inflation does not cool as expected, the risk to the U.S. economy will increase.
Credit Suisse advised investors to under-allocate global stocks because central bankers stressed at the Jackson Hole meeting that inflation would be curbed by raising interest rates. Michael Strobaek, credit Suisse's global chief investment officer, wrote that claims of an early dovish turn by the Fed and other major central banks are now clearly unreliable, with markets now facing slower economic growth, rising recession risks and high inflation, so "the coming months could be painful."
Yingxi Group's transfer to nasdaq surged more than 80 times on the first day
On Wednesday, August 31, Eastern time, Addentax Group Corp. (ADDENTAX Group Corp.) from the powder single market OTC to the NASDAQ capital market in the attrition code, the opening of the day opened at $27, 5.4 times the issue price of $5, the morning session had narrowed gains, the stock price fell back to $12.95, from noon sharply pulled up, and finally closed at $656.54, up 8653.87% from the closing price of the OTC market in Japan on Tuesday, a day before the NASDAQ listing.
On Wednesday, two other Chinese "demon stocks" that have been up and down recently, MEGL and The Monk Multiplier Branch (HKD), closed up more than 33 percent and nearly 11 percent, respectively. But the cumulative decline in the most recent month has exceeded 90% and 80%, respectively.
As of Wednesday's close, Yingxi Group's total market capitalization reached $17.1 billion.
Media: The U.S. Department of Justice may be after the midterm elections
Announced charges against Trump
According to media reports on August 31, local time, people familiar with the matter revealed that if the US federal prosecutor determines that former President Trump violated the law, they may not announce the charges against him until after the November midterm elections to avoid affecting the election.
It is reported that the US Department of Justice has conducted a search of Trump's Mar-a-Lago estate on trump's suspicion of illegal possession of classified documents, in addition, another Justice Department investigation focused on Trump's efforts to overturn the 2020 presidential election.
Russian frigate "Strong"
Exercises in the waters of the Baltic Sea
The Information Service of Russia's Baltic Fleet said on Aug. 31 that the frigate "Strong" conducted exercises in Baltic waters.
Russia's Baltic Fleet said that during the exercise, the frigate "Strong" used the "Uranus" anti-ship missile system to launch electronic missiles at imaginary hostile ships, and destroyed air targets close to the target area through the artillery, air defense and other means of the air defense system. In addition, the frigate conducted electronic jamming exercises and exercises on the survivability of the ship and its passage through narrow channels.
Russia claimed to dismantle the southern Ukrainian offensive
Ukraine called it the attack on the Russian army on the southern front
Russian Defense Ministry spokesman Konashenkov reported on August 31 that the Russian army has dismantled the Ukrainian counter-offensive on the front line of Nikolayev-Krivoyrog in the past two days. In the past 24 hours, the Russian army has destroyed 10 command posts and 2 ammunition depots in Kherson, Dnipropetrovsk and donetsk regions. The Russians also shot down 7 Ukrainian drones and intercepted 57 rockets of various types, including Haimas multiple rocket launchers.
In addition, the Russian side also said that the Ukrainian army suffered serious losses when it launched attacks on some settlements in Kherson, Vinnytsia, Nikolaev and other areas.
On August 31, the leaders of the Donetsk region said that a number of missiles with a range of 300 kilometers for the use of multiple rocket launchers in Haimas had arrived in Ukraine. Donetsk civilian forces and Russian troops are planning to destroy the missiles.
Ukrainian President Zelenskiy said on August 30 that Ukrainian troops are operating on the southern front, Kharkiv and Donetsk.
The Southern Ukrainian Combat Command issued a war report on August 31 saying that as of 12:00 on August 31, the situation in the south was tense and volatile, but under the control of the Ukrainian armed forces. The Armed Forces of Ukraine have established fire control over the Kakhovka Bridge and the Antonovsky Bridge. In addition, the Ukrainian armed forces continued to attack russian logistics supplies, and many targets, including Russian control points, ammunition depots and air defense equipment, were attacked by Ukrainian missile and artillery units.
Iran's Islamic Revolutionary Guard Corps is released
An American unmanned boat under its control
According to media reports on August 31, iran's Islamic Revolutionary Guard Corps Navy took control of a US unmanned boat with lost navigation and communication in the Gulf waters on the 30th, and released the boat after informing the US side of relevant regulations.
According to reports, in order to ensure the safety of the route and prevent accidents, the Iranian Islamic Revolutionary Guard Corps Navy took timely action to control and tow the unmanned boat. A US destroyer then arrived in the waters where the incident occurred, and the Iranian side released the unmanned boat after informing the other side of the relevant safety requirements.
The report also said that in recent weeks, many US unmanned boats have been deployed to international waters and international shipping lanes in the Gulf region, and it is not clear what the US side intended for this deployment. If the navigation communication of the unmanned boat is interrupted, it may cause an accident at sea.
According to media reports quoting U.S. Navy officials, Iran's Islamic Revolutionary Guard Corps seized a U.S. unmanned boat on August 30 and tried to tow it away, releasing the U.S. Navy warship and helicopter when it approached. The unmanned boat carries cameras, radar and sensors for remote monitoring of the ocean.
Editor: Jianjian Chen, Yin Wang