iFund- Daily Market Commentary

2019-08-06 07:18
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The U.S. Treasury Department announced that China will be listed as a currency manipulator. China’s central bank governor Yi Gang has said that he will not deal with trade disputes by exchange rate and the RMB will remain as a strong currency. The Chinese Ministry of Commerce confirmed the suspension of US agricultural product purchases. As the trade war escalated again, US stocks hit their biggest decline this year.

  • The Dow Jones Industrial Average closed at 25,717.74 points, down 767.27 points or 2.90%. The Standard & Poor’s 500 Index closed at 2,844.74 points, down 87.31 points or 2.98%. The Nasdaq index closed at 7,726.04 points, down 278.03 points or 3.47%.
  • The U.S. Treasury Department announced that China will be listed as a currency manipulator and the US will engage with the International Monetary Fund to eliminate the unfair competitive advantage brought about by the depreciation of the renminbi.
  • The National Federation of Farmers said that Trump’s strategy of escalating and confronting does not solve the unfair trade practices with China and it makes things worse. It is also reported that after the Sino-US trade war escalated, Chinese buyers have sought to buy Brazilian soybeans the next day.

  • The UK’s FTSE 100 index closed at 7,223.85 points, down 181.81 points or 2.47%. The Frankfurt DAX index closed at 11,658.51 points, down 213.93 points or 1.80%. The French CAC40 index closed at 5,241.55 points, down 117.45 points or 2.19%.
  • Market research firm Sentix survey data showed that after the seasonal adjustment, the euro zone’s Investor Confidence Index in August deteriorated for the third consecutive month, from negative 5.8 to negative 13.7, far worse than the market expectation of negative 7.
  • Markit data showed that the final value of the Purchasing Managers’ Index (PMI) in the Eurozone in July was slightly revised down, from an eight-month high of 53.6 in June to 53.2.

  • Japan’s Nikkei 225 index closed at 20,720.29 points, down 366.87 points or 1.74%. The yen closed at 106.110 against the US dollar, up 0.716%.
  • Jibun Bank/Markit data showed that after the seasonal adjustment, Japan’s Service Purchasing Managers Index (PMI) unexpectedly fell to 51.8 in July from 51.9 in June, lower than the market expectation of 52.3.

  • The Shanghai Composite Index closed at 2,821.50 points, down 46.34 points or 1.62%. The Shanghai and Shenzhen 300 Index closed at 3,675.69 points, down 71.75 points or 1.91%. The RMB closed at 7.039 against 1 US dollar, down 1.433%.
  • Former Chinese central bank official Sheng Songcheng claimed that the renminbi is depreciating against the US dollar, but the renminbi remains stable against others currencies. It is expected that the renminbi exchange rate will remain basically stable.
  • Xinhua News Agency published a commentary article, pointed out that the US announced that it intends to impose an extra 10% tariff on US$300 billion worth Chinese exports, it is a serious violation of the consensus between the heads of state of China and the United States.

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