Financial industry September 30 news, investors continue to weigh the impact of the Fed's aggressive policy on the economy, while the Bank of England's emergency bailout action on the market boost gradually disappeared, risk aversion returned, the US stock market rally sentiment failed to extend the full line of decline, the Dow fell more than 450 points, the S&P fell more than 2% and hit the lowest closing point of the year and the new intraday low since 2020; Pharmaceutical stocks, new energy vehicle stocks, hotel and leisure stocks fell sharply, and Wei Xiaoli performed poorly, of which Wei Lai and Xiao Peng both fell by about 10%.
By the close, the Dow Jones was down 456.15 points, or 1.54 percent, at 29,227.59 points; the S&P 500 was down 77.64 points, or 2.09 percent, at 3,641.40 points; and the Nasdaq composite was down 314.13 points, or 2.84 percent, at 10,737.51.
Gold futures delivered on the New York Mercantile Exchange for December fell $1.40, down nearly 0.1 percent to close at $1,668.60 an ounce, up 2.1 percent on Wednesday. Silver futures fell 17 cents to $18.712 an ounce, or 0.9 percent, in December. Palladium prices rose $42 in December, up 1.9% to $2,211.10 an ounce; Platinum prices rose 0.01 percent in January to close at $860.20 an ounce, down 60 cents. Copper futures for December delivery rose 6 cents to $3.418 a pound, or 1.8 percent.
West Texas Intermediate November futures fell 92 cents on the New York Mercantile Exchange to close at $81.23 a barrel, down 1.1 percent or nearly 4.7 percent on Wednesday. ICE Euronext Brent crude futures fell $0.87 to $87.18 a barrel in December. The November Brent crude near-month contract, which will expire at Friday's close, fell 83 cents to $88.49 a barrel, or 0.9 percent. Back at the New York Mercantile Exchange, gasoline fell 2.7 percent in October to $2.5076 a gallon and heating oil fell 1 percent to $3.4146 a gallon in October, with both October contracts expiring on Friday. Natural gas prices fell 1.2 percent in November to $6.874 per million British thermal units.
Most of the hot Chinese stocks fell on Thursday, and the Nasdaq Golden Dragon China Index closed down 4.7% preliminarily. Daily Excellent Fresh fell more than 18%, Weilai fell more than 10%, and Xiaopeng Automobile fell more than 9%. Zhihu fell more than 8%, Ideal Auto fell more than 6%, Bilibili and Futu Holdings fell more than 5%, iQiyi, Manbang, Vipshop, Weibo fell more than 4%, NetEase, Qudian, Pinduoduo, Tencent Music, Jingdong fell more than 3%, Baidu and Alibaba fell more than 2%.
The group car rose more than 25%, Medical Beauty International rose more than 16%, Golden Sun Education rose more than 13%, Lanting Jishi rose more than 11%, Uxin rose more than 8%, Mushroom Street rose more than 5%, Haiyin Wealth rose more than 4%, Taihe Cheng Medical, Qilian International, Fanhua Financial Holdings, Dewei, etc. rose more than 3%, Ucommune, Fuwei Film, China Natural Resources, Mingchuang Premium, Haichuan Securities, etc. rose more than 2%, Baosheng Technology, China Global Shipping, Basket Technology, Juhao Mall, Siku, Tuniu, etc. rose by more than 1%.
Pintitanium fell more than 22%, Daily Excellent Fresh fell more than 18%, Qutoutiao fell more than 17%, Asia-Pacific wire and cable fell more than 14%, EHang, Lujin Holdings fell more than 13%, China Green Forest Agriculture, BOSS Direct Hire, Digital Sea Shares, Lychee, etc. fell more than 11%, Su Xuantang, Yuehang Sunshine, Weilai fell more than 10%, Rong Lianyun Communications, Xiaopeng Automobile fell more than 9%, Continental Science Instrument, Zhihu, Yingxi Group, Jiufu and other companies fell more than 8%, the ninth city, everything is new, Dingdong buy vegetables, 21Vianet, Wanguo Data, Cheetah Mobile, Nine Purple New Energy, Shang Multiplier Section, Lexin, O.R.G. Seed Industry, etc. fell more than 7%. New energy vehicles rose and fell, with Weilai falling more than 10%, Xiaopeng Automobile falling more than 9%, and Ideal Auto falling more than 6%.
Fed Mest: There's no reason to slow down rate hikes right now
Fed officials reiterated that they will continue to raise interest rates to curb unacceptably high inflation, and that the market now understands the message. Their remarks also put some pressure on the market, and today's three major US stock indexes opened low and went low, and the Nasdaq once fell more than 3%. Cleveland Fed President Mester said she believes U.S. financial markets are not in trouble and that the Fed will not change its current tightening policy for the time being.
In an interview with the media, Mestre said that while no one knows for sure whether there is a big problem lurking in the financial sector at the moment, so far, we have not seen a functional disorder in the market. Even though this is happening in the global market right now, we don't see that in the U.S. market.
Mestre also spoke about turbulent market conditions around the world. A day earlier, the Bank of England's Bank of England announced plans to buy government bonds to stabilize the declining British government bond market, putting more pressure on the new Prime Minister Truss's government.
U.S. jobless claims unexpectedly fell to a five-month low The labor market remains strong
Data released Thursday by the U.S. Department of Labor showed that initial jobless claims in the U.S. fell to 193,000 in the week ended Sept. 24, the highest since the week of April 23, 2022, and market expectations were 215,000. This suggests that the labor market remains fairly strong amid economic uncertainty.
In the 10 years before the COVID-19 outbreak, initial jobless claims averaged about 306,000, rarely less than 200,000. The number of U.S. jobless claims fell to 1.347 million in the week ended September 17, still at a record low, with market expectations of 1.388 million.
Former Bank of England governor: The Tlas government is weakening the country's economic institutions
Former Bank of England Governor Mark Carney has criticized British Prime Minister Gilas Truss for weakening the country's economic institutions and said her economic policies were to blame for the fall in the pound and British treasuries. "The message from financial markets is that in today's environment, unfunded spending and tax cuts should be limited," Mark Carney said. "These costs are higher borrowing costs for governments, mortgage holders and borrowers across the country."
He said the UK government's "mini budget" of sweeping tax cuts ran counter to the Bank of England's efforts to control inflation, adding that it would take some time for policies to stimulate economic growth to take effect. In addition, he pointed out that in the early days of the Tlas administration, there was a change in the Chancellor of the Exchequer, and the Office of Budget Responsibility (OBR), the government's financial regulator, was clearly marginalized.
"Some of the institutions that underpin an entire plan have been weakened, so the forecast without OBR has received a lot of commentary," he said. "Unfortunately, in the context of the severe global economic situation and financial market situation, and contrary to the purpose of the central bank's work, budget inadequacies have led to violent fluctuations in financial markets."
Tlas defends the tax cut plan: Britain faces severe economic pressure and must take urgent action
British Prime Minister Gilas Truss defended the controversial tax cut after the British government's massive unfunded tax cut plan triggered market turmoil. Tlas said: "We are facing a very, very difficult economic period, which is also a problem on a global scale. We must take urgent action to boost economic growth, which means making controversial and difficult decisions. She added: "I am well aware that the government has done the right thing. This is the right plan. ”
Less than a month into office, the Tlas government was hit by a crisis of confidence in its economic policies. On Friday, the Tlas government introduced Britain's most aggressive tax cuts since 1972 to boost the long-term growth potential of the British economy. The tax cuts are worth up to £45 billion, including the elimination of plans to raise corporate tax to 25%, the elimination of the top tax rate of 45%, and the drastic reduction of stamp duty. It is reported that the scale of the tax cut exceeds the tax cut introduced in 1988 under Thatcher's administration, and is the largest in half a century.
U.S. mortgage rates soared to 6.7 percent, the highest level since 2007
Data released by U.S. home mortgage giant Freddie Mac on Thursday (September 29) showed the U.S. 30-year fixed mortgage rate rose to 6.7 percent, the highest since 2007 and the sixth consecutive week of that data rising. This has led to a decline in buyer demand and a slowdown in U.S. house price growth.
For the week ended September 22, the average 30-year fixed mortgage rate was 6.29%. Freddie Mac noted that such large fluctuations in a week have only happened a few times in decades. Freddie Mac's chief economist said uncertainty widens the gap between services provided by different lenders and that "the huge difference in interest rates means that homebuyers are more important to shop with different lenders."
OPEC may announce production cuts again next week and officially start a tug-of-war with Europe and the United States
Organization of the Petroleum Exporting Countries (OPEC) member countries and some non-OPEC producers such as Russia will hold a monthly regular meeting of the "OPEC+" mechanism. In light of the latest oil market conditions, the main members of OPEC+ have begun to organize private meetings on topics related to oil production cuts in November, the three sources said.
One of the sources made it clear that OPEC+ has come "very close" to announcing production cuts again; The other two were more conservative, revealing only that member states did touch on the topic, but the potential cuts were still unclear.
Investors flock to safe havens! The size of the Fed's reverse repurchase use hit another record high
With rising interest rates and market turmoil, investors' demand for safe-haven soaring, and financial markets shifting from equities to fixed-income products, cash-like assets are now a popular choice for investors. On Wednesday, about 101 participants invested a total of $2.367 trillion in the Fed's overnight reverse repurchase (RRP) tool, breaking the all-time high of $2.359 trillion on September 22, the day after the Fed raised interest rates by 75 basis points.
It is understood that the overnight interest rate paid by the Fed's reverse repurchase tool is 3.05%, up from 2.30% on September 22, which is also the highest yield offered by the Fed since it began issuing the tool daily in 2013. Some analysts say that in the face of the prospect of a rapid rise in interest rates, investors are shortening the maturity period of their holdings as much as possible so that they can allocate cash more flexibly if interest rates rise faster than expected in the coming months. This investment awareness has spurred money to flow rapidly into overnight instruments that do not have the risk of loss, such as the Fed's overnight reverse repo.
Well-known hedge fund managers in the United States: There will be a recession in 2023 The stock market may stagnate in the next decade
Stan Druckenmiller, a prominent billionaire hedge fund manager, expects the U.S. to see a recession in 2023 and the stock market likely to stagnate over the next decade. "I would be shocked if we didn't experience a recession in 2023," he said. He added that it was not ruled out that there would be a "very bad situation".
Stan Druckenmiller points out that the problem is the decade-long, $30 trillion quantitative easing policy, which has led to the current environment. He said it was long overdue for the Fed to stop implementing loose monetary policy. "When you have spare money to buy bonds, bad behavior occurs."
Stan Druckenmiller slammed the Fed for saying central bank policymakers "put themselves and the country and, above all, the people of this country in a bad position." "Inflation is a killer. In order to maximize employment in the long term, you need stable prices. ”
Another 75 basis point hike in November? Wall Street has frequently warned that the risk of a hard landing is increasing
As the Fed continues to raise interest rates quickly and violently this year, warnings have emerged that the U.S. economy will fall into recession. Now, economists are worried that such aggressive rate hikes by the Fed could lead to a hard landing after a slow response to rampant inflation. Legendary investor and billionaire Stanley Druckenmiller also warned on Wednesday that there would be a recession in the United States in 2023 and that the market could stagnate over the next decade.
Bank of America: U.S. stocks are still falling, and the S&P 500 index may continue to decline until October
Stephen Suttmeier, technical strategist at Bank of America, said: "We mark 14,000 points as the maximum support level for US stocks in August. Last week, the NYSE composite index fell below this level, which we think is a sign that the stock market will be lower, and the bear market in the S&P 500 will continue into October. Suttmeier pointed out that the S&P 500 index has broken below the rising trend line since the beginning of June and will also fall to the low of 3400 points. Both the Dow and the Dow Jones Transportation Average hit new year-to-date lows last week, once again confirming the main bearish trend for 2022 based on Dow Theory.
Buffett swept Western Oil again and bought 6 million shares in three days
While the performance of energy stocks also seems to be starting to falter with the recent pullback in oil prices – Occidental shares have fallen by about a fifth in less than a month. However, this does not seem to affect the buying enthusiasm of "stock god" Buffett.
On Wednesday, Buffett's Berkshire Hathaway filed with the U.S. Securities and Exchange Commission (SEC) showed that the company had bought another 5,985,190 shares of Western Petroleum Corporation, increasing its stake to 20.9 percent. Berkshire said in its filings that the acquisitions took place between Sept. 26 and Sept. 28 and cost a total of about $352 million. Based on Occidental's closing price of $61.41 on Wednesday, Berkshire currently holds about 194.4 million Occidental shares, worth about $11.9 billion, excluding preferred shares and warrants.
Bilibili's conversion to a dual primary listing on the Hong Kong Stock Exchange came into effect on October 3
On September 29, the official website of the Hong Kong Stock Exchange showed that Station B was converted from a secondary listing to a major listing on the Hong Kong Stock Exchange, which will officially take effect on October 3. At that time, Station B will become the first TMT (technology, media, communications) company in China to complete the voluntary conversion from secondary listing in Hong Kong to dual major listing.
After the conversion to a dual primary listing, Station B can attract more potential investors on the Hong Kong Stock Exchange, enhance the liquidity of the company's shares and the flexibility in the capital market. In addition, after the dual major listing, Station B is also expected to be eligible to be included in the Hong Kong Stock Connect in the near future. Hong Kong Stock Connect is a link between the Chinese mainland and the Hong Kong capital market, after being included in the Hong Kong Stock Connect, Chinese mainland investors will be able to directly trade the company's stocks on the Hong Kong Stock Exchange, which is conducive to Station B attracting Beishui funds, and also creates more convenience for Chinese mainland investors to directly invest in Station B. At the same time, the Class Z common shares listed on the Hong Kong Stock Exchange and the American Depositary Shares listed on the NASDAQ Global Select Market in the United States are convertible to each other.
Ideal Car: The Ideal L8 will be officially released at 15:00 on September 30
On September 30, 2022, Ideal Auto announced the Ideal L8 (up to 400,000 yuan), an intelligent luxury six-seater medium and large SUV for families. The ideal L8 exhibition car will arrive at the ideal automobile retail center across the country for everyone to experience during the National Day, and officially start delivery in early November.
This article originates from the financial world