iFund- Daily Market Commentary

2019-05-07 01:19
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6/5/2019

US Trade Representative Wright Heze said the US will raise tariffs on Chinese goods on Friday, accusing China of abandoning its promises. However, it also added that the Sino-US trade talks will continue this week. Trump’s tariff threat has greatly reduced the efforts of Federal Reserve Chairman Powell to curb interest rate cuts. Money market traders expect that the Fed will cut interest rates by 25 basis points by April 2020.

      • The Dow Jones Industrial Average closed at 26,438.48 points, decreased by 66.47 points or 0.25%. The Standard & Poor’s 500 Index closed at 2,932.47 points, decreased by 13.17 points or 0.45%. The Nasdaq index closed at 8,123.29 points, decreased by 40.71 points or 0.50%.
      • US Trade Representative Wright Heze said on Monday that the US plan to raise tariffs on Chinese goods on Friday, accusing China of abandoning some of the promises that have been already made during the negotiations. However, he added that the Sino-US trade talks will continue this week, the representatives of China will visit Washington on Thursday and Friday.
      • Trump’s tariff threat has greatly reduced the efforts of Federal Reserve Chairman Powell’s efforts to curb interest rate cuts. Money market traders expect that the Fed will cut interest rates by 25 basis points by April 2020.

      • The UK’s FTSE 100 index closed at 7,380.64 points, increased by 0.00 or 0.00%. The Frankfurt DAX index closed at 12,286.88 points, decreased by 125.87 points or 1.01%. The French CAC40 index closed at 5,483.52 points, decreased by 65.32 points or 1.18%.
      • According to the data of Sentix survey, the euro zone’s investor confidence index rose sharply from 0.3 decrease in April to 5.3 increase in May, hitting the six-month high, far exceeding market expectations of 1.2.
      • Eurozone’s retail sales growth decelerated monthly to zero in March after seasonal and work day adjustments, above market projection of a 0.1% decline.

      • Japan’s Nikkei 225 index closed at 22,258.73 points, increased by 0.00 points or 0.00%. The yen closed at 110.790 against the US dollar, increased by 0.632%.
      • 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, the highest level since October last year, and exceeded market expectations of 1.1%.

      • The Shanghai Composite Index closed at 2,906.46 points, decreased by 171.88 points or 5.58%. The Shanghai and Shenzhen 300 Index closed at 3,684.62 points, decreased by 228.59 points or 5.84%. The RMB closed at 6.765 against 1 US dollar, decreased by 0.451%.
      • The People’s Bank of China said that the reduction of the required reserve ratio for small and medium-sized banks is aimed at establishing a policy framework and increasing support for the real economy. Bloomberg economists expect China will lower the benchmark at least once in the second quarter or the beginning of the third quarter.
      • The profit of Chinese enterprises has fallen to a 12-year low since the trade conflict with US. According to Bloomberg data, the median profit margin of Chinese listed non-financial companies in 2018 fell to a new low of 7.76% since 2006.




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