SMM5 month 6 news: the first trading day in May finally ended, the A-share three major stock indexes encountered open the door black the whole line plummeted, the Shanghai index fell 5.58%, the Shenzhen Composite Index fell 7.56%, the gem index fell 7.94%, the Shanghai Composite Index fell 5.58%, the Shenzhen Composite Index fell 7.56%, and the gem Index fell 7.94%. The market is everywhere, a total of 1062 stocks in the two cities fell by the limit, 3466 stocks fell, and the number of stocks down more than 8 per cent reached 1918! The beauty since the beginning of the year suddenly disappeared, making people feel as if they had returned to 2018 overnight.

Not only have A shares fallen badly enough, but stock markets around the world have seen a general sharp drop. The Hang Seng Index in Hong Kong has fallen by more than 3%, other Asian stock indexes have generally fallen by more than 1%, and major European indices have opened down nearly 2%. At one point, the three major US stock index futures fell more than 2 per cent, while the panic index VIX rose more than 10 per cent. It can be predicted that US stocks will also be doomed tonight.

In commodity markets, two barrels of oil fell nearly 2 per cent, six non-ferrous metals collectively fell, the black system performed slightly better, and iron ore, coking coal and coke all rose by varying degrees.

In the foreign exchange market, the volatile offshore renminbi fell below 6.82 at one point and is now stable around 6.78, down 500 points.

There have been reports that US President Donald Trump has once again threatened to impose tariffs, sparking panic in global markets. At a press conference held by the Ministry of Foreign Affairs on 6 May, a reporter asked US President Trump about his claim to impose tariffs on Chinese goods and the next round of Sino-US economic and trade consultations. Foreign Ministry spokesman Geng Shuang said, With regard to the US threat to impose tariffs on Chinese products, similar situations have occurred many times before. What I can tell you here is that the Chinese team is preparing to go to the United States for consultations. The Foreign Ministry spokesman's words may bring some confidence to the market.

It is worth mentioning that less than a minute before the opening of trading in the morning, the central bank rarely announced a targeted reduction in the standard for small and medium-sized banks from May 15, 2019, releasing 280 billion of the funds, all of which were used to make loans to private and small and micro enterprises.

In this regard, economist Deng Haiqing said that the central bank generally announces major monetary policy operations after the end of trading time, and the possible consideration is to reduce the impact on the market. At the same time, it can reduce the information asymmetry caused by the speed of obtaining information in the market. The central bank's announcement of major monetary policy operations in intraday trading could be aimed at boosting market confidence. Affected by external factors, overseas risky assets have fallen sharply, and it can be expected that the impact on the Chinese stock market will only be greater, not less. The Shanghai Composite index fell 3 per cent at the start of trading, confirming a serious lack of confidence and the need for policy hedges.