iFund- Daily Market Commentary

2019-08-23 04:36
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The US Secretary of State expects that the representatives of China and the US will continue the trade negotiations in the next week or within next 10 days. The trade war may end before the 2020 election, he also claimed Huawei is not the only Chinese company that poses a national security threat on the US. Prime Minister Conte resigned and condemned the Vice Premier Salvini for making the ruling coalition unsustainable.

  • The Dow Jones Industrial Average closed at 25,962.44 points, down 173.35 points or 0.66%. The Standard & Poor’s 500 Index closed at 2,900.51 points, down 23.14 points or 0.79%. The Nasdaq index closed at 7,948.56 points, down 54.25 points or 0.68%.
  • US Secretary of State Pompeo said he expects the representatives of China and the US will continue the trade negotiations in the next week or within next 10 days. The trade war may end before the US election in November 2020. He also claimed Huawei and other Chinese companies pose a national security threat to the United States.
  • Trump said the Fed would need to cut interest rates in a large scale. He also claimed it could bypass the Congress to cut capital gains tax.

  • The UK’s FTSE 100 index closed at 7,125.00, down 64.65 points or 0.90%. The Frankfurt DAX index closed at 11,651.18 points, down 64.19 points or -0.55%. The French CAC40 index closed at 5,344.64 points, down 26.92 points or 0.50%.
  • The EU rejected the call of British Prime Minister Johnson to restart the negotiations on the Brexit agreement, saying that the plan on Irish issues that Johnson hopes to abolish is an important part of the Brexit agreement.
  • The British Central Bureau of Investigation (CBI) announced that the UK’s CBI total industrial orders have stopped its fifth consecutive month decline in August, from negative 34 in July to negative 13 in August, far higher than market expectations of negative 25.

  • Japan’s Nikkei 225 index closed at 20,677.22 points, up 114.06 points or 0.55%. The yen closed at 106.320 against 1 US dollar, up 0.254%.
  • Japan’s August Manufacturing Sentiment Judgment Index fell for the three consecutive months, from 3 in July to minus 4 in August, which was the first negative pessimism since April 2013.

  • The Shanghai Composite Index closed at 2,880.00 points, down 3.09 points or 0.11%. The Shanghai and Shenzhen 300 Index closed at 3,787.73 points, down 3.36 points or 0.09%. The RMB closed at 7.061 against 1 US dollar, down 0.181%.
  • Sun Guofeng, director of the Monetary Policy Department of the People’s Bank of China, said that the reform and improvement of the LPR formation mechanism does not involve changes in market interest rates. The focus of the reform is the marketization of loan interest rates, so there is no direct impact on the RMB exchange rate.
  • Zhou Liang, vice chairman of the China Banking Regulatory Commission, said that the implementation of LPR will certainly help increase credit growth for the private, small and micro enterprises, and can help to reduce the financing costs of enterprises, especially private, small and micro enterprises.

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