iFund- Daily Market Commentary

2019-06-06 01:38
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5/6/2019

It is reported that the United States and Mexico have not reached an agreement to avoid tariffs, and Fitch downgrades Mexico. The Fed’s Beige Book shows that the economic situation has improved and grown slowly. The EU initiated a disciplinary process against Italy to warn of the “snowballing” effect of debt. The People’s Bank of China said it would provide timely support to small and medium banks with temporary liquidity problems.

      • The Dow Jones Industrial Average closed at 25,539.57 points, up 207.39 points or 0.82%. The Standard & Poor’s 500 Index closed at 2,826.15 points, up 22.88 points or 0.82%. The Nasdaq index closed at 7,575.48 points, up 48.36 points or 0.64%.
      • It is reported that the United States and Mexico concluded negotiations on Wednesday and did not reach an agreement to avoid tariffs. Trump said that the negotiations have made progress, but not enough. Fitch downgrades Mexico to BBB. Moody’s adjusts Mexico’s rating outlook from stable to negative.
      • The Fed’s Beige Book shows that overall economic activity has “slow growth” from April to mid-May, which is better than the “slight to moderate speed” of the previous period.

      • The UK’s FTSE 100 index closed at 7,220.22 points, up 5.93 points or 0.08%. The Frankfurt DAX index closed at 11,980.81 points, up 9.64 points or 0.08%. The French CAC40 index closed at 5,292.00 points, up 23.74 points or 0.45%.
      • The EU initiated a disciplinary process against Italy, paving the way for a preliminary fine of 3.5 billion euros to the country. EU warns of the “snowballing” effect of debt.
      • Prime Minister Conte said that the current target of GDP in 2019 is a deficit of 2.1% . Based on available data, it can be assumed that the public administrative net deficit of Italy in 2019 will be much lower than the forecast of the European Commission.

      • Japan’s Nikkei 225 index closed at 20,776.10 points, up 367.56 points or 1.80%. The yen closed at 108.310 against the US dollar, down 0.332%.
      • According to the data from Nikkei/Markit, after the seasonal adjustment, Japan’s  Purchasing Managers’ Index (PMI)  fell for three months in a row from 51.8 in April to 51.7 in May which is four-month low. The service provider’s confidence in the prospects for the coming year once again hit the half-year low in March.

      • The Shanghai Composite Index closed at 2,861.42 points, down 0.86 points or 0.03%. The Shanghai and Shenzhen 300 Index closed at 3,597.11 points, down 1.36 points or 0.04%. The RMB closed at 6.907 against 1 US dollar, up 0.025%.
      • The People’s Bank of China said it would provide timely support to small and medium banks with temporary liquidity problems.
      • The Financial Stability Board of the central bank said that the overall leverage ratio is generally stable, stabilizing at around 250% for the past eight consecutive quarters, and the ratio for the latest quarter has increased by a few percentage points which is related to the change of  GDP deflator.







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