On August 5, 2024, I believe that all shareholders will firmly remember this day. Black Monday once again enveloped the global stock market, and then under this haze, is it an opportunity or an end?
The global stock market fluctuated and the cryptocurrency liquidated
Yesterday, a stock market storm swept the world, and the stock market directly turned into a "green grassland", and key indices were green-
Source: Wind;
Asia-Pacific markets plunged across the board
Japan's stock market crashed across the board yesterday. By the end of the day, the Nikkei 225 index plunged more than 13% intraday to 31,458.42 points, the biggest single-day drop in nearly 34 years. The circuit breaker mechanism was triggered many times during the intraday session, and trading was suspended for a time.
Source: Straight Flush; Nikkei 225 in Tokyo;
Turning back to Korea, the Korea Composite Index and Korea KOSDAQ Index fell more than 10% and 13% intraday, respectively, triggering an intraday circuit breaker.
Source: Straight Flush; Korea Kospi Index;
Japan and South Korea have collapsed, and other stock markets in the Asia-Pacific region have also begun to follow suit. The Singapore Straits Index fell by about 5% intraday, and the Taiwan Weighted Index fell by more than 8%...
Source: Straight Flush; Taiwan Weighted Index;
Dragged down by the external stock market, the A-share and Hong Kong stock markets, which had bucked the trend, also began to turn around. As of the close, the Shanghai Composite Index, the Shenzhen Component Index, and the ChiNext Index all fell more than 1%.
Source: Straight Flush;
The Asia-Pacific market generally presents a situation of "stepping on the accelerator to the end, no one gets off".
But even in the case of "green grassland", A-shares are still the best performing and the lightest green in the world!
The cryptocurrency market has taken a heavy turn
Global stock markets are volatile, and the cryptocurrency market is not immune. Represented by Bitcoin, it once fell below the $49,000 mark. According to the data, in the past 24 hours, more than 270,000 people in the whole market have liquidated, with a total amount of more than $1 billion.
数据来源：coinglass；
The reasons for the collapse are geometric, and there are many problems with the US-Japan alliance
This large-scale stock market crash is mainly due to several factors-
The Bank of Japan raised interest rates
Historically, every interest rate hike in Japan has corresponded to the node of the financial crisis.
Source: BCA Study 2024;
Peter Berezin, a global strategy researcher at BCA Research, a well-known independent macroeconomic research institution, once exclaimed:
Image source: Internet;
Then again, why can the Bank of Japan's interest rate hike affect global stock markets?
In fact, the most important thing is that Japan's interest rate hike has led to the appreciation of the yen, breaking the original yen arbitrage trading model. For arbitrageurs, the appreciation of the yen means that the cost of arbitrage increases, and investors are forced to choose to close their positions and lift the arbitrage trade. Large-scale asset inflows and outflows affect the global stock market, futures, bond markets, etc.
United States non-farm payrolls data fell short of expectations
On August 2, local time, the United States Bureau of Labor Statistics released non-farm payrolls data: United States non-farm payrolls increased by 114,000 in July, expected 175,000, and the number of new jobs in June was revised down from 206,000 to 179,000. The unemployment rate rose to 4.3%, rising for the fourth consecutive month and the highest since October 2021.
The data came in far short of expectations, raising concerns about a hard landing for the United States economy.
Source: Wind, Haitong Securities Research Institute;
Warren Buffett slashed Apple's position sharply
Over the weekend, Warren Buffett's companies sold United States Apple shares sharply, from 780 million shares in the first quarter to only 400 million shares now, cashing out nearly 100 billion US dollars. This also caused Apple's stock to plunge in the premarket on Monday.
Source: Straight Flush;
As an investment directional figure in the industry, the sharp slashing of technology giant stocks is undoubtedly a heavy blow to market confidence. The already fragile capital market is now only fragmented.
The renminbi bucked the trend and the stock markets gradually rebounded
Yesterday, the renminbi appreciated sharply again. The data showed that the USD/CNH reached 7.0836 intraday, a new high since the beginning of the year.
Source: Straight Flush;
The offshore renminbi has continued to soar in recent days, rising by more than 1,500 points from its highest point. The onshore yuan rose more than 1,000 pips against the dollar.
Renminbi assets are gradually gaining strength.
Today, the Japan stock market, the Korea stock market, and the Chinese Taiwan stock market have all launched a major counteroffensive. The Nikkei 225 index rebounded more than 10% at one point, and the Korea Kospi index and the Taiwan weighted index rebounded more than 3% at one point. It is worth mentioning that the main A-share index also rose in a narrow range at today's close.
Source: Wind;
What do you think about whether the "Black Monday" incident is an opportunity for asset allocation or the end of the financial crisis?
*This article is for learning and exchange purposes only, and the types of funds and stocks in the content are for illustration purposes only and do not constitute any investment advice. Investment is risky, and you need to be cautious in your choice.