Two big negatives! The global stock market rebounded but A-shares fell sharply, and the reason for the crazy smashing of domestic capital was found
Recently, the global stock market ushered in a wave of rebound, however, the A-share market has fallen sharply, which has attracted the attention of the majority of investors. Why is that? The reason for the crazy smashing of domestic capital has finally been revealed!
First, let's look at the global stock market. Recently, as the COVID-19 epidemic has been gradually brought under control, countries around the world have taken measures to stimulate economic recovery, and the stock market has seen a round of rebound. European and American stock markets have updated record highs, and investor confidence has soared. However, the A-share market has seen the opposite situation.
Last night, US Treasury yields plummeted, the US dollar index continued to fall, and US stocks experienced sharp fluctuations in opening low and high. This is a problem that we have analyzed before, and US Treasury yields have become the core contradiction of the current global stock market. It is worth mentioning that a rebound is reasonable, and a non-rebound is unreasonable.
With the arrival of a new day, the Asia-Pacific stock market opened higher, A-shares and Hong Kong stocks also moved, and northbound funds bought one after another. The Hong Kong stock Hang Seng Index rose more than 2% at one point, but domestic capital continued to smash the market, causing the infrastructure sector to plummet and dampening market sentiment. Immediately afterwards, A shares also began to dive. In the afternoon, the dollar index strengthened, dragging Hong Kong stocks to the downside. Undoubtedly, only A-shares closed down in the global stock market today, and it showed a unilateral downward trend of high opening and low throughout the day, which is really disappointing. Let's break it down in detail.
Recently, the yield on 10-year U.S. Treasury bonds jumped above 4.8% due to the surge in U.S. Treasury yields, shocking U.S. financial markets and the economy. Last night, Fed Vice Chairman Jefferson made dovish remarks, saying officials were in a "cautious" position. More importantly, the Fed's "hawkish representative" and Dallas Fed President Logan also said that the recent rise in long-term Treasury yields means that the need for further tightening by the Fed is reduced.
This series of dovish statements by the Fed caused the US 10-year Treasury yield to plunge last night, while the US dollar index weakened, US stocks opened lower and higher, and the Nasdaq index rose by 0.39%.
In addition to the Fed's statement, there are two other positive news worth paying attention to:
According to CaiLian News Agency, as Inner Mongolia took the lead in firing the first shot of chemical bonds, the process of issuing special refinancing bonds nationwide accelerated. As of the evening of the 9th, Inner Mongolia, Tianjin, Liaoning, Yunnan, Chongqing and Guangxi have successively announced special refinancing bond issuance plans, with a total scale of 319.652 billion yuan.
Although A-shares suffered a one-sided decline throughout the day, we cannot ignore the impact of the above positive news. Overall, the current volatile state of the world stock market will continue for some time, but it also brings us more opportunities and challenges. As investors, you should remain calm and pay close attention to various favorable stimulus policies and changes in the macroeconomic situation in order to grasp the direction and timing of investment. Because to achieve long-term investment value growth, you need to have a lot of patience and wisdom.
While today's market performance is disappointing for A-share investors, it must also be acknowledged that volatility and correction are an inevitable process of market operation. However, it is believed that with the gradual implementation of various favorable policies and the gradual improvement of the macroeconomic situation, investors can still find opportunities suitable for themselves and realize wealth appreciation.
In the face of the impact of the two major bearishness, the A-share market was stormy for a while. However, we should also see that this does not mean that the A-share market is hopeless. At present, the domestic government is stepping up the reform of the capital market, further improving the transparency and legalization of the market, and attracting more foreign capital inflows. In addition, the fundamentals of economic recovery remain sound, and the potential of a market economy is huge. As long as the risks are reasonably grasped, investors can still find investment opportunities that suit them.
Here, we call on investors to maintain a calm and rational attitude, stabilize confidence in market fluctuations, and reasonably plan investment strategies. Cultivate wisdom in the face of adversity and leave fear behind, believing that there will always be light coming.
To sum up, the reason for the sharp decline in the A-share market is the large-scale outflow of global funds and the lack of domestic confidence. However, investors need not be overly pessimistic and firmly believe that the A-share market still has long-term investment value. In the face of adversity, stabilize confidence and seize opportunities in order to open up a new world in the market.
In the future investment journey, we must maintain a sense of awe of the market and enrich our investment knowledge at all times, no matter where and when. Believe that tomorrow will be better!
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