iFund- Daily Market Commentary

2019-07-12 10:44
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11/7/2019

Fed Chairman Powell said there is room for interest rate cuts, and monetary policy may be too tight now. Besides, the latest US CPI is stronger than that of forecast, the extent of interest rate cut in July is expected to decline. Trump complained that China has not fulfilled its commitment to purchase US agricultural products at the G-20 summit.

      • The Dow Jones Industrial Average closed at 27,088.08 points, up 227.88 points or 0.85%. The Standard & Poor’s 500 Index closed at 2,999.91 points, up 6.84 points or 0.23%. The Nasdaq index closed at 8,196.04 points, down 6.49 points or 0.08%.
      • Federal Reserve Chairman Powell said that the Fed will have room for monetary easing, and monetary policy may be too tight now given that the neutral interest rate is lower than expected.
      • Trump complained that China has not fulfilled its promise at the G-20 summit to increase the purchase of US agricultural products. It claimed that Xi Jinping agreed that China would purchase a large amount of US agricultural products at the Osaka Summit.
      • The UK’s FTSE 100 index closed at 7,509.82 points, down 20.87 points or 0.28%. The Frankfurt DAX index closed at 12,332.12 points, down 41.29 points or 0.33%. The French CAC40 index closed at 5,551.95 points, down 15.64 points or 0.28%.
      • The Bank of England issued a financial stability report, and it is expected that the outcome of the no-deal Brexit may hit the value of pound, national debt and house prices, with a “substantial economic disruption” risk.
      • The minutes of the European Central Bank’s meeting in June showed that policymakers generally believe that they need to be prepared for policy easing, despite there are different views on which tools to be used.
      • Japan’s Nikkei 225 index closed at 21,643.53 points, up 110.05 points or 0.51%. The yen closed at 108.130 against the US dollar, up 0.731%.
      • Japan’s Ministry of Economy, Trade and Industry announced that after seasonal adjustment, Japanese third industry activity index fell by 0.2% month-on-month to 106.8, which was worse than market expectations of a 0.1% decline.
        • The Shanghai Composite Index closed at 2,917.76 points, up 2.46 points or 0.08%. The Shanghai and Shenzhen 300 Index closed at 3,785.22 points, down 1.52 points or 0.04%. The renminbi closed at 6.867 against 1 US dollar, up 0.242%.
        • The issue price of the first batch of 25 companies that listed in the technology innovation board was all settled on Wednesday, and the average price-to-earnings ratio was 53 times, significantly higher than the industry average of 33 times.
        • The Ministry of Commerce spokesperson Gao Feng pointed out that there are some foreign-funded enterprises worried on the China’s financial market, but according to current understanding, China has not experienced large-scale foreign capital withdrawal, and he stressed that China will not suppress any foreign-funded enterprises.



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