The global stock market plummeted, and the Middle East conflict was paid by A-shares, and Huijin bought the bottom of more than 100 billion yuan
Last night, Federal Reserve officials were hawkish, and the dollar index and U.S. Treasury yields both strengthened, suppressing the performance of technology growth stocks, and the U.S. stock Nasdaq fell for five consecutive days. Today, the Asia-Pacific stock market opened wildly, and there were reports of the resurgence of the conflict between Iran and Israel, gold and crude oil soared, the market risk aversion heated, and the global stock market was panic selling, with the South Korean Composite Index, Nikkei 225, and the Hong Kong Hang Seng Technology Index all falling more than 3%. But then it was reported that the conflict was not as fierce as imagined, gold and crude oil dived, and the Asia-Pacific stock market also bottomed out, but the closing was still a sharp fall, but I didn't expect the A-share 419 curse to be realized in this way.
Let's take a look:
Fed officials hawkish
Last night, the number of initial jobless claims in the United States was 212,000 last week, with an estimate of 215,000 and a previous value of 211,000, which is at a recent low.
Atlanta Fed President Bostic has repeatedly stated that he expects to cut interest rates only once this year. In his speech on Thursday, he reiterated this point, saying that his view on the likely timing of the first rate cut was "the end of the year" and that "I am willing to be patient".
Fed's Williams said that he has not yet felt the urgency of cutting interest rates, and may even raise interest rates if the data supports it.
Due to the hawkish comments of Federal Reserve officials, the dollar index and U.S. Treasury yields both strengthened last night, suppressing the performance of technology growth stocks, and the Nasdaq closed down 0.52%, which has fallen for the fifth consecutive day.
The semiconductor sector fell sharply
As the U.S. employment and inflation data in March exceeded expectations, the market's expectations for the Fed to cut interest rates have been repeatedly adjusted, and even expectations that there may not be a rate cut this year, which has caused the yield of the U.S. 10 bonds to soar. In addition, geopolitical conflicts have driven up commodities such as crude oil, reflation expectations have risen, and the market environment of high interest rates and high inflation is very unfavorable for technology growth stocks.
TSMC announced its first-quarter earnings report last night, in addition to AI, consumer electronics and automobiles fell short of expectations, TSMC fell nearly 5%, and today's A-share semiconductor sector also fell sharply.
In the market environment of high interest rates and high inflation, global technology growth stocks are in a headwind period, which is style suppression, and the turnaround of technology growth stocks may have to wait until the yield of the US 10 bonds peaks and falls.
Here is a reminder of the risks of resource stocks, the current pricing of resource stocks has included the Fed's interest rate cut expectations, global economic recovery expectations, and geopolitical conflict expectations. In fact, due to the resilience of the U.S. economy, the Federal Reserve may delay cutting interest rates, and the rebound of the U.S. economy in the early stage is on the one hand stimulated by the downward trend of market interest rates, and on the other hand, there is also the wealth effect brought by the continuous rise of U.S. stocks to support consumption. However, at present, the yield of the US 10 bonds has soared to 4.6%, which will suppress the recovery of manufacturing and real estate, and the weakening of US stocks will weaken the wealth effect, and it is difficult for the US economy to continue to strengthen.
The European economy is in recession, and although the conditions for an interest rate cut have been met, the ECB may also delay the rate cut due to the Fed's delay in cutting interest rates, taking into account exchange rate factors. Stagflation generally ends in a recession, and this round may not be able to escape.
Huijin bought hundreds of billions of dollars
The first quarter report of 2024 recently released by some funds confirmed that in the sharp adjustment market in the first quarter of this year, Central Huijin bought heavily. At present, Huijin has spent about 145 billion yuan on the three broad-based ETFs that have disclosed quarterly reports, of which about 53 billion yuan has been purchased for Harvest CSI 300 ETF, about 56 billion yuan for ChinaAMC CSI 300 ETF, and about 36 billion yuan for ChinaAMC SSE 50 ETF.
Finally, as of the close, the Shanghai Composite Index fell 0.29%, the ChiNext Index fell 1.76%, the Hong Kong Hang Seng Index fell 0.90%, and the Hang Seng Technology Index fell 2.23%. The turnover of the two cities shrank to 0.86 trillion, more than 3,500 companies fell, and northbound funds sold nearly 6.5 billion yuan, net selling for four consecutive trading days.
Risk Warning:
The stock market is risky, investment needs to be cautious, this article does not constitute investment advice, readers need to think independently