The fund jun opened a stock account, originally wanted to make money in the market, before the mid-life crisis to be financially free, but did not think, in 2020, one after another was pulled to witness history, witness the end of the global market Collapse. At a young age, I inexplicably witnessed history every 3 days, and encountered six or seven major changes that had not occurred in a hundred years...
On Friday, the U.S. stock market is soaring more than 9%, the weekend a share and cut the RRR, the 16th U.S. stock market, today's pre-market Fed and urgently exceeded expectations to cut interest rates to 0, and also launched 700 billion US dollars QE, it can be said that today's opening of the first three positive pounds, enough to let the index open dozens of points higher. However, the market that trades during the day, whether it is futures or the stock market, whether it is gold or silver, is full of sorrow.
The Fed's operation was as fierce as a tiger, hitting the global market and investors with a confused face.
First of all, the three major U.S. stock index futures opened directly down the stop fuse and lay straight all day, followed by a share also plummeted, and then the three major European stock indexes also surged 10%, the most panicked is a British listed company, the stock price once plummeted 100%, yes you read it right, the stock price fell to 0, and it is still a large-cap stock!
Finally, it was the turn of the US stock market, which was circuited at the opening. Fuse again. The world bears witness to history.
what a day！
Witness history again! For the third time this year
U.S. stocks plummeted and melted down again
On the evening of the 16th, the US stock market opened sharply, immediately triggering the third circuit breaker of the month and taking over the Asian and European market. The S&P 500 opened down 220.60 points, or more than 7 percent, to re-hit the circuit breaker and suspend trading; the NASDAQ fell 482.20 points, or 6.12 percent, at 7,392.73 points; and the Dow Jones fell 2,250.50 points, or 9.71 percent, at 20,935.16.
Trading is suspended for 15 minutes after that. Markets are still watching global policymakers' response to the pandemic. The Fed cut interest rates to zero and launched a $700 billion QE program to support markets and economies in fighting the negative effects of the coronavirus pandemic. But the Fed's interest rate cuts have failed to allay concerns about the outbreak.
The CBOE Volatility Index (VIX), which measures the level of market panic, rose more than 30 percent at one point, hitting a new high since the 2008 financial crisis.
As of press time, the three major U.S. stock indexes have fallen by about 10%. The Dow Jones fell nearly 2800 points at the most in the session, at one point more than 12%. I hope that the US stock market can rise back in the second half of the night.
In addition, gold and crude oil have collapsed.
TRUMP: God bless America
Earlier, when the Fed announced the rate cut, Trump said at a press conference that he was "very pleased" with the Fed's rate cut and that the market should be "excited" about the Fed's actions. There will be no more bad things about Powell for the next two months.
Trump said: "I congratulate the Fed on doing this. It's great for our country. "I have to say, I'm very happy. [The Fed] didn't choose to do it in four steps for a long time, but they chose to do it in one step. "I think the market people should be very excited."
And tonight, before the U.S. stock market opened, Trump posted on social networks: God bless america.
Why did the Fed amplify its moves and the market crashed instead?
Early Monday, Beijing time, the Federal Reserve urgently announced that it would cut the benchmark interest rate to near zero and launch a new round of quantitative easing with a scale of $700 billion to deal with the impact of the covid-19 virus on the US economy.
As a result, the market did not buy it, and the three major stock index futures directly lay down and fused.
Why is that? Market commentators say the market is currently in a sense of the end of the world. The Fed has run out most of the bullets, and the market is left running naked. Basically, the global economic outlook is cloudy.
There are also comments that the big troops that feel that the new crown and recession have not yet arrived, and the ammunition depot here has been exhausted. For the Fed to cut interest rates, why is the market panicning more intense!? Some Wall Street analysts say that when you have a very powerful person around you suddenly like a madman, and it is an impromptu meeting, and it is pouring everything out, people will feel that this is a lack of confidence.
Teacher Ren Zeping commented that I drank and quenched my thirst in one sentence
1. In the face of the large-scale spread of the epidemic and the collapse of the financial market, this time the Fed once again offered the policy combination "zero annual interest rate + qe" in response to the 2008 international financial crisis, which is completely drinking and quenching thirst.
The global financial market avalanche, the epidemic is only the fuse, the root cause is the long-term over-development of the currency economic, financial and social vulnerabilities. Since the 2008 international financial crisis, 12 years have passed, and the United States and Europe have mainly relied on quantitative easing and ultra-low interest rates, resulting in asset price bubbles, rising debt leverage, widening wealth gaps among residents, social rifts, intensification of political views, and prevalence of trade protectionism. The United States is facing four major crises: stock market bubble, debt leverage, financial institution risk, and social tearing. Europe and Asia are facing the same problem. From the perspective of the financial cycle, this is a total liquidation, and sooner or later it will come.
2. The correct way to deal with it is to control the epidemic as soon as possible, exchange short-term costs for long-term victories, and then stabilize growth with fiscal policy as the mainstay and monetary policy as a supplement.
According to the successful experience of China and Singapore, in the face of a large-scale outbreak of the epidemic, it is first necessary to control the epidemic and resume production and life, provide short-term liquidity and tax cuts, and then gradually stimulate economic growth and employment. The Fed directly released water from the currency, the steps were wrong, from the original arrogance and lack of attention to the current panic.
3, I feel that the United States is so engaged, trade protection, currency release, politics is kidnapped by populism, currency is kidnapped by politics, is going into the fire, self-destruct martial arts.
Originally, the market economy, democratic society, the American dream, and universal values have guided the direction of human civilization in the past hundred years, but now the United States is still very good, but it has begun to fade.
If China can promote fiscal policies based on new infrastructure and tax cuts, expand opening up, multi-level capital market construction, and improve income distribution and social governance, the national fortune will come.
U.S. President Donald Trump said at the White House that he was very satisfied with it. "It's a big step forward and I'm very happy, and there are a lot of people on Wall Street who are very happy!" This makes us finally the same as other countries! ”
This is the first time that Powell has received "praise" from Trump since he took office as Fed chairman in early 2018, and it is also the first time since Trump became president that he has expressed his recognition of the Fed, after Trump has expressed his dissatisfaction with the Fed's high interest rates countless times.
However, the market thinks that this is the Fed throwing the pot, and the picture is this: Fed Chairman Powell said to President Trump that I tried my best. The cards that should be played, I'm out. The back is up to you.
CICC analysts said the Fed's approach was very controversial and nominally in response to the impact of the epidemic. We think this move may cause market controversy: should it be interpreted as a situation so serious that it has to be extraordinary, or should it be interpreted as a policy that is determined to maintain economic growth? Moreover, after this move, the conventional interest rate tools in the United States are basically exhausted, and if the economy has a greater impact in the future, it can only rely on fiscal and other unconventional monetary policies.
Some commentators said that the Fed's two interest rate cuts are completely fatal suicide rate cuts. Just as several shareholders joined together to hold a deck of cards to fight the landlord, the Fed took the lead in throwing out the two kings and four 2s, saying" I can do everything I can do, and if something goes wrong, don't tell me I'm not working hard." Officials in other departments were still holding 56789 and two pairs of 10 in their hands, and they were directly dumbfounded.
European stock markets have been slashed
The share price of some listed companies once fell to zero
At present, the global epidemic is more serious in Europe, and the United Kingdom has adopted an alternative approach: herd immunity.
THE WHO daily epidemic report shows that as of 10:00 CET on the 15th (17:00 Beijing time on the 15th), the number of confirmed covid-19 cases outside China increased by 10,955 from the previous day to 72,469, and the number of deaths outside China increased by 333 from the previous day to 2,531.
Italy is close to 25,000, with 3,477 new cases today. Spain surpassed South Korea to become fourth in the world, declaring a national lockdown. Germany has confirmed more than 5,000 cases and closed its borders to five surrounding countries.
Let's look at the European stock market, which was wiped out. The three major stock indexes, the UK FTSE France CAC40 German DAX, have fallen nearly 40% this year.
European stock markets even had a strange scene, after the opening of the British stock market, the British multinational food processing and retail company, the world's second largest sugar and baker's yeast producer United Foods (lon: abf, hereinafter referred to as Abf) opened 5% lower, but the stock price plummeted 100% after the opening hour, suspended by the London Stock Exchange.
abf is one of the top 10 food companies in the world and one of the five largest companies in Europe by market capitalization.
Bloomberg data show that before the "crash" plunge, the stock price of AbPay Foods was 1559.5 pence, corresponding to a market value of 1235.124 billion pence (about 108.004 billion yuan), which means that the market value of more than 100 billion yuan of AB Foods was instantly extinguished. However, Bloomberg trading data shows that after briefly hitting a 100% drop, AB Foods' share price is back to pre-plunge levels.
The matter sparked a heated discussion on Weibo.
Finally, I wish A shares can survive! The A50 is currently pulling up, down around 2%.
Source: China Fund News