China Fund News Taylor
Brothers and sisters, the "419 curse" was fulfilled as scheduled, but what I didn't expect was that this time it was caused by Israel!
The so-called "419 curse" refers to April 19 every year, and if it is a weekend, it is two days before and after that day, and A-shares are prone to a sharp fall. This miraculous phenomenon has been evident since 2007.
Today's reason, I believe that Taylor does not need to explain more, is caused by the conflict between Israel and Iran, which has caused the entire Asian market, including Japan and South Korea, to fall sharply, and investors are paying for it!
On Friday, Israel launched a retaliatory attack on Iran, with a person familiar with the matter saying Israel acted in retaliation for Iran's previous massive drone and missile attacks on its territory. Such a move would risk further plunging the two countries into a vicious cycle of escalation, which could lead to war.
According to the source, the target of the attack was the area around Isfahan. According to Iranian media and social media reports, explosions occurred near the city of Isfahan, where Iran has nuclear facilities and drone factories, while Iranian provinces activated air defense systems after the detection of suspicious flying objects.
The state-run Islamic Republic News Agency (IRNA) said its reporters had not seen massive destruction or explosions anywhere in Iran, and that there had been no incidents at Iran's nuclear facilities.
The U.N. nuclear watchdog said Iran's nuclear facilities were not damaged in any way after airstrikes in Isfahan province on Friday and called on the region to exercise restraint.
The IAEA said its head, Rafael Grossi, "continues to call on all to exercise extreme restraint and reiterate that nuclear facilities should never be the target of a military conflict." ”
Iranian media have just published footage and images of calm scenes in the country after airstrikes. An Iranian official said air defense systems intercepted three drones after receiving reports of an explosion near a military base in the central region.
Isfahan Airport is back to normal operations after the country's airports were closed earlier in Tasnim, according to semi-official sources in Tasnim.
Jun Rong Yeap, market strategist at IG, said the escalation of the conflict showed that "retaliatory actions by both sides will continue longer" and that the expansion of the conflict could jeopardize oil supplies or trade routes. Asian countries, which are net energy importers, are particularly vulnerable to soaring oil prices, he said.
Christopher wong, a Singapore FX strategist at OCBC Bank in Singapore, said the explosion in Iran was a big blow to risky assets, including stocks and most currencies. While policymakers in the region and the US have collectively taken a more aggressive stance to reassure FX markets, the resurgence of geopolitical shocks could unsettle market sentiment. During this period, safe-haven assets such as gold, the US dollar, the Swiss franc and the Japanese yen are likely to see further demand.
The event has left markets in turmoil, with Asian stock markets plummeting and the Nikkei Stock Average posting its biggest drop in 2024.
Gold and oil rose sharply at one point.
U.S. stocks dived pre-market.
As of the close, the Shanghai Composite Index fell 0.29%, the Shenzhen Component Index fell 1.04%, the ChiNext Index fell 1.76%, and northbound funds sold a net of 6.5 billion yuan. A total of 1,617 stocks rose and 3,365 declined.
Well, that's it for the market, happy weekend everyone!