iFund- Daily Market Commentary

2019-07-04 01:08
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Trump once again accused China and Europe of currency manipulation, and foreign exchange analysts predict that the US may intervene in the currency market. The Sino-US trade team will hold talks over the phone in the coming week. The three major US stock indices hit record highs. Iran has issued an “ultimatum” to Europe and will restart the nuclear reactor if it fails to fulfill its promise.

      • The Dow Jones Industrial Average closed at 26,966.00 points, up 179.32 points or 0.67%. The Standard & Poor’s 500 Index closed at 2,995.82 points, up 22.81 points or 0.77%. The Nasdaq index closed at 8,170.23 points, up 61.14 points or 0.75%.
      • Trump criticized China and Europe for manipulating the exchange rate and called on the United States to adopt a reciprocal approach in his tweet. Analysts believe this indicates that the US Treasury may intervene in the US dollar to drive down the US dollar exchange rate.
      • Kudlow, director of the White House National Economic Council, said that the Sino-US trade team will hold talks over the phone in the coming week. White House trade adviser Navarro said that trade representative Wright Heze will meet with Chinese Vice Premier Liu He soon to discuss trade issues.
      • The UK’s FTSE 100 index closed at 7,609.32 points, up 50.13 points or 0.66%. The Frankfurt DAX index closed at 12,616.24 points, up 89.52 points or 0.71%. The French CAC40 index closed at 5,618.81 points, up 41.99 points or 0.75%.
      • Iran has issued an “ultimatum” to Europe. If European countries cannot provide a promised economic guarantee before the July 7 deadline, Iran will restart a sealed nuclear reactor and strengthen uranium enrichment activities.
      • The European Commission did not take disciplinary action against Italy on the debt issue, and the Italian government debt rose significantly.
      • Japan’s Nikkei 225 index closed at 21,638.16 points, down 116.11 points or 0.53%. The yen closed at 107.630 against the US dollar, up 0.585%.
      • Japanese Prime Minister Shinzo Abe said that there is no need to raise the sales tax to more than 10% in the next 10 years, as this may hinder the government’s efforts to rectify the state’s fiscal position.
      • The Shanghai Composite Index closed at 3,015.26 points, down 28.68 points or 0.94%. The Shanghai and Shenzhen 300 Index closed at 3,893.53 points, down 43.64 points or 1.11%. The RMB closed at 6.881 against 1 US dollar, down 0.067%.
      • According to informed sources, after the resumption of trade negotiations between China and the United States, China is considering buying small quantities of US agricultural products to show goodwill, but the number of purchases may not be as much as ever.
      • The Bloomberg survey shows that the market are cautious about the Chinese central bank’s strong stimulus measures such as interest rate cuts and required reserve ratio cuts (RRR cuts). It is expected that the current strength of the national debt may be difficult to continue.

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