SMM News: may 6, Beijing time news of the United States stock index futures fell sharply before Monday, Dow futures fell 1.8%, the S & P 500 fell 1.6%, Na Index futures fell 2.0%.
The Chicago volatility index (VIX), known as the panic index, soared more than 45% today to a high of 18.80, its highest level since late January.
The collapse in global stock markets coincided with a collective rally in safe-haven assets: spot gold continued to rally today to a peak of $1285.60 an ounce, while the dollar continued to fall against the safe-haven yen, as low as 110.27.
Bloomberg economists Carl Riccadonna and Yelena Shulyatyeva wrote that the April non-farm payrolls report showed a strong rebound in the pace of hiring, sending encouraging signals. It shows that the temporary economic weakness expressed by Federal Reserve Chairman Powell at a news conference after the FOMC meeting is indeed fading. However, wage pressures are running low, leaving the prospect of potential inflationary pressures unclear.
As a result, the producer price index (Thursday) and consumer price index (Friday), to be released this week, will be closely watched for evidence that overall downward inflationary pressures have receded over the past few months.
Bloomberg economic research suggests that inflation will accelerate as unemployment continues to fall further below neutral levels-but that may not be obvious until the economy gets rid of the inventory backlog in the second half of the year.
No important US economic data were released on Monday.
Focus individual stock
Apple fell more than 3% before the market, on the news, the company was complained by Spotify, the European Union will officially launch an antitrust investigation against Apple.
The Boeing disk fell 2.25%. Reports say the Boeing plane ran off the runway when it landed in Norilsk, Russia.
The ninth city rose more than 6% before trading, and the company voted to increase capital and other proposals to promote cooperation with Jia Yueting's FF.
Disney, which fell 1.29% before trading, reached an agreement last week with Sinclair Broadcasting Group to buy its sports network for $9.6 billion.
Berkshire Hathaway fell 1.65% in front of trading as the company reported first-quarter results over the weekend and recorded an increase in net profit.
Dowdar, which fell more than 2 per cent before trading, announced today that it would buy Anadarco oil for $8.8 billion in African assets after buying it in the west.
Us automakers generally fell before the market, with Tesla down 1.97 per cent, GM down 2.91 per cent and Ford down 2.59 per cent.
Several senior Fed officials worry about "low inflation" and even publicly call for interest rate cuts
After Powell said he expected inflation to rise to the 2 per cent target, Evans, chairman of the Chicago Fed, and Brad, chairman of the St. Louis Fed, both said they were worried about inflation and that the Fed might need to cut interest rates.
Brad (Bullard), chairman of the St. Louis Fed, said Friday that the Fed's policy rate was "a little tight" and that the current inflation data were disturbing.
Chicago Fed Chairman Evans (Evans) said Friday that the Fed may need to cut interest rates if the U. S. economy weakens. He is concerned about continued weakness in inflation.
Last time it was used for 25 years, this time 215 days, what else could the Fed not do?
In its latest analysis, Bank of America Merrill Lynch points to the fact that it took 9146 days for the S & P 500 to reach a new high after a bear market that fell more than 20 per cent. Just like what happened on September 7, 1929 and September 22, 1954. But by 2019, it took only 215 days for the S & P 500 to rebound and surpass its all-time high.
Behind the sharp contraction in the stock market from bear to bull, a number of factors are playing a role, the most important of which is that the Fed has far more influence than it used to be. The Fed has long made it clear that it will never allow the market to fall sharply-because any sharp fall and / or recession would endanger the only remaining confidence in the wealth effect and the Fed's power.
Relying on the prosperity shaped by policy, of course, will not be fully affirmed by investors. So in the eyes of investors, what kind of strategy and attitude should be taken towards today's US stock market? Bank of America Merrill Lynch from the positioning, policy and profits of these three aspects, a comprehensive analysis of the trend of the U. S. stock market. Details.
Eurozone economy slows or is bottoming out PMI data for April shows signs of stabilising
Economic activity in the eurozone showed signs of stabilizing in April, with new signs that the eurozone slowdown may be bottoming out.
"No sense of security" sweeping the world? Look at the anxiety in Europe and the United States.
A 2018 survey by the OECD (OECD) sparked reflection. Because OECD countries are among the richest in the world, they spend an average of more than 20 per cent of GDP on social policy, or about $8000 per person per year.
Only 20% think they can use public welfare when they need it. Only 25% said the government had given them enough income support to deal with unemployment or raising children. Only 20 per cent thought they had enough income to support their condition in the event of illness, disability or old age. Fifty-nine per cent did not believe that they had received a share of public benefits commensurate with their taxes. 2/3 of high-income earners think they need more public support.
Bank of America survey: 70% of small businesses in the United States have begun to prepare for recession
Fears of a recession still seem to hang over the United States.
More than 2/3 of business owners surveyed by BofA said they had taken steps to prepare for the recession, including keeping more cash or planning spending cuts. Of the 69 per cent of business owners who have begun to prepare for the recession, only 19 per cent have access to a certain credit line ahead of time, a figure that BofA's head of small business, Sharon Miller, says is too low.
Although s & p hit an all-time high, nearly 25 per cent of stocks are still at least 20 per cent above their 52-week high. Stocks such as Macy's, Activision, Nvidia (183.01,-0.18,-0.10 per cent) and FedEx performed even worse, down 30 per cent from 52-week highs.
Chad Morganlander, a portfolio manager at Washington Crossing Advisors, warned against being seduced by stocks that look like discounts.
European Union: European Commission plans to increase Natural Gas imports from the United States
The EU will seek to double (LNG) imports from the US by 2023 to reduce dependence on Russian gas while easing trade tensions with the US. The European Commission, which is responsible for coordinating the trade policies of 28 EU countries, said recently that it plans to increase its annual imports of liquefied natural gas from the United States to 8 billion cubic meters by 2023, twice as much as in 2018.
The committee also said it would use the first EU-US Energy Commission high-level forum in Brussels to discuss further enhancing the transatlantic LNG trade relationship.
The European Union is the world's second-largest natural gas market after the United States, with imports accounting for about 70 percent of the market, and Russia is its largest single supplier.
IMF supports carbon dioxide tax
Lagarde, managing director of the World Monetary Fund, and Jasper (Vitor Gaspar), director of the organization's Ministry of Finance, said that in order to abide by the objectives of the Paris climate agreement, global carbon emissions must be reduced by 1/3 by 2030, To that end, carbon dioxide should be taxed at about $70 a tonne.
They point out that there is a growing consensus that taxation is "the most effective tool" to limit fossil energy consumption and the resulting carbon dioxide emissions. The relevant taxes can provide the necessary funds for the transformation of renewable energy.
The impact of different levels of taxation on carbon dioxide emissions varies from country to country.
European Council President Tusk warns of risks to the rise of American technology giants
European Council President Donald Tusk said in Warsaw on Friday that The world needs to be alert to the rise of American technology giants such as Google (1185.4, 22.79, 1.96 per cent), Apple, Facebook (195.47, 2.94, 1.53 per cent) and Amazon (1962.46, 61.64, 3.24 per cent).
The European Union has been calling for stronger controls on the way social media companies handle consumer personal data.
In May last year, GDPR privacy regulations issued by the European Union gave regulators the power to impose fines of up to 4 per cent of their global revenues for corporate violations.
Whose economic recovery? The number of homeless people in New York is at an all-time high
Although the US stock market has reached an all-time high and the unemployment rate has fallen to its lowest level since 1969, the number of homeless people in the country is also breaking new records.
According to (AHAR), the 2018 annual homelessness assessment released by the U.S. Department of Housing and Urban Development (HUD), more than 550000 Americans are homeless every night, including 78676 in New York City alone, or about 14 percent of the country's homeless population.
Recently, the American homeless Alliance also released the latest "homeless status report" pointed out that although in February this year, an average of 63615 people slept in free shelters provided by the New York government, an improvement over last year. But the number of homeless singles reached a record 18212, up 150 per cent from 2009.
These surging figures show that Wall Street makes very little money to those at the bottom of the economic ladder, nor do they get a slice of the so-called economic recovery.