iFund- Daily Market Commentary

2019-05-02 01:24
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1/5/2019

The Fed will maintain the benchmark interest rate unchanged, but will cut the excess reserve rate by 5 basis points. Powell said that the inflation level may be suppressed by the temporary factors, the market expectations of interest rate cuts are lowered. The US Treasury Secretary said that the Sino-US trade negotiations in Beijing on Wednesday were fruitful and negotiations will be continued in Washington next week.

    • The Dow Jones Industrial Average closed at 26,430.14 points, down 162.77 points or 0.61%. The Standard & Poor’s 500 Index closed at 2,923.73 points, down 22.10 points or 0.75%. The Nasdaq index closed at 8,049.64 points, down 45.75 points or 0.57%.
    • The Fed will keep the benchmark interest rate unchanged and reiterate that it should keep patient in making the interest rate change decision. Besides, the Fed decided to lower the interest rate on excess reserves (IOER) by 5 basis points to 2.35%.
    • The latest round of Sino-US trade negotiations ended in Beijing on Wednesday. US Treasury Secretary Mnuchin said the meeting were fruitful and will continue consultations in Washington next week.
    • The UK’s FTSE 100 index closed at 7,385.26 points, down 32.96 points or 0.44%. The Frankfurt DAX index closed at 12,344.08 points, up 0.00 or 0.00%. The French CAC40 index closed at 5,586.41 points, up 0.00 points or 0.00%.
    • The growth rate of Eurozone economy has unexpectedly accelerated in the first quarter, as Spain’s performance was good and Italy is recovering from recession, it eased the pressure on the European Central Bank to increase stimulus measures.
    • The Italian Statistical Office announced that Italy’s initial consumer price index (CPI) in April rose slightly to 1.1% year-on-year while the CPI monthly increase slightly slowed to 0.2%, both of which met market expectations.
    • The Japanese market is closed for holidays.
    • Japan’s Ministry of Internal Affairs and Communications announced that Tokyo’s consumer price index (CPI) accelerated from a 0.9% increase to a 1.4% increase in April, which is the highest value since October last year, and it exceeded market expectations of 1.1%.

    • The Chinese market is closed for holidays.
    • China announced new measures to further open up the financial industry, including plans to remove restrictions on the proportion of shares held by Chinese commercial banks, and to remove the asset requirements for foreign banks to set up banking institutions in China.
    • In the State Council’s Daily Meeting, it emphasized the need to maintain employment stability and determined to use the 100 billion yuan unemployment insurance fund to help people to learn more vocational skills.








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