Nightmare! Us Shares Have Been Blown For Fourth Times In 10 Days.

The three major indexes of the US stock market in New York fell again on the 18 day.

Panic in the financial markets has not been effectively alleviated by the outbreak of the new crown pneumonia epidemic, and the market is surging in the panic of the US economy in recession. On the same day, the US stock market opened sharply lower in the morning, and the S & P 500 index fell more than 7%, triggering the fusing mechanism again, and stopping for 15 minutes. This is the fourth time that the US stock market has flocked in 10 days.

After the deal, the three major indexes continued to fall, and the S & P 500 fell 10%. By the end of 18, the Dow Jones Industrial Average fell more than 1200 points, fell twenty thousand points, closed at 19898.92 points, or 6.3%, while the standard & Poor's 500 stock index closed at 2398.10 points, or 5.18%, while the Nasdaq composite index closed at 6989.84 points, or 4.7%.

European stock market fell sharply on 18 th

Although many European countries have launched economic stimulus measures, the new crown pneumonia epidemic and the market's worries about the economic recession have led to the three largest European stock index falling on the 18 day.

By the end of the day, the average price index of the 100 stocks in the London stock market fell 4.05% to 5080.58. Among them, the cruise company Carnival Corp shares fell more than 34%, Airbus Airbus fell 22%. In other two major European stock indexes, the CAC40 index of the French stock market in Paris closed at 3754.84 points, or 5.94%, while the DAX index of Germany's Frankfurt stock closed at 8441.71 points, or 5.56%.

International oil prices plunge 18 days

Price war and weak demand and other factors continue to affect, international oil prices fell sharply on the 18 day. As of the end of the day, the New York Mercantile Exchange delivered light crude oil futures in April, down $6.58, or 24.4% at $20.37 a barrel, according to Dow Jones market data, the lowest level since February 20, 2002. Brent crude oil futures for May delivery fell 3.85 US dollars to close at $24.88 a barrel, or 13.4%, the same price level since May 2003.

Analysts believe that the main reason for the collapse of international oil prices is that there are problems at both ends of supply and demand. In terms of demand, the new crown pneumonia epidemic has led to a sharp decline in global demand for crude oil, while supplies, Saudi Arabia and Russia are ready to continue to increase production may further stimulate oil prices decline.

International gold price falls 18 days

On the 18 day of the US stock market melting and the impact on the international epidemic situation, the massive sell-off of gold by investors led to a sharp fall in international gold prices on the 18 day. The gold futures market of the New York Mercantile Exchange was the most active gold futures in April, 18 days, down 47.9 US dollars from the previous trading day, closing at 1477.9 US dollars, or 3.14%. Some analysts have warned that falling gold prices may be a deflationary signal that the economy may begin to decline.

The New York stock exchange will close the trading hall.

Due to the intensification of the new crown pneumonia, the New York stock exchange will temporarily close the trading hall on the 23 th of this month. All the activities will be carried out on the electronic trading platform. At present, you need to measure your body temperature before entering the trading hall entrance. ?

Market worries about unemployment prospects

I hope the White House will introduce more radical measures to fight the epidemic.

Financial commentator Chen Qian: on Tuesday of the United States on Tuesday, when the market was celebrating the 1 trillion dollar stimulus policy launched by the government of the US government and led to the rebound of US stocks, it might not have been thought that trillions of dollars had only one day to support market sentiment. Before the opening of US stock market on Wednesday, the US stock index touched the limit line. After that, the US shares opened low, hovering around 5%.

Later, the White House held a press conference, President Trump announced a further fight against the epidemic policy, including the launch of the "national defense production act" to give the government the right to force us companies to produce military supplies including medical supplies. However, the US stock fell all the way during the press conference and was blown again after the end of the press conference, which is the fourth blow in the downtrend. After 15 minutes of trading, the market continued to fall. At most, the Dow Jones Industrial Average fell nearly 10%, once erasing all gains since Trump took office. The final decline narrowed slightly, because in the late news, the Senate passed a bill to protect the American people's paid vacation and unemployment insurance. The news eased the market to a certain extent, but the Dow still fell 6.3%, while the S & P 500 fell nearly 5.2% while the Nasdaq composite index fell 4.7%.

Why is there another slump in the market? There are two possible reasons: one is that the market is worried about the economic outlook, and the two is that the market is still not buying the White House's rescue policy.

First, in the early market, there were reports that Treasury Secretary Mnuchin warned Republican members that if the anti epidemic bill was not passed by Trump, the unemployment rate in the United States could soar to 20%. Although Trump and Mu u chin have denied the 20% data, it is clear that this makes the market more worried about the impact of the development of the epidemic on the US economy. In addition to the unemployment rate, representatives of the restaurant industry and retail industry have formally sent letters to the White House for help in addition to airlines. So how much can the white house save? How bad is the economic impact? Uncertainty makes market participants dare not stay in the stock market, just want to stay away from the market at this time.

Second, many people still feel that the White House is far from enough. Bill Ackerman, a well-known investor, said the Trump administration should block the country for 30 days, which is the only option to save the US economy. He said that the US approach is slowly causing people to panic, causing businesses to drain cash reserves one by one. Therefore, the market is indeed looking forward to the government's more radical measures to fight the epidemic. The above two points are the fundamentals for US stocks to fall again.

There is also a concept of risk. It is also a point of view discussed in Wall Street on the last two days - "risk parity". It means investing different assets in the investment fund, placing eggs in different baskets, including stocks, bonds, US dollar index, natural gas, oil and gold. Many American Funds adopt this pattern of hedging, because in normal markets, different types of assets go away. When risky stocks fall, funds will flow into security assets such as bonds, yen or gold, so as to reduce the overall risk. However, the asset setting of risk parity has failed in this market. We can see that many asset classes such as stock market, US debt, oil, gold and so on are being sold at the same time. The basket of eggs loaded at the same time has been overturned. Under such circumstances, the impulse function of the risk parity mechanism has failed, and even if there is a high leverage in the middle, it is more likely to trigger a sharp rise in the market. Plummeting.

The most important thing is the fundamental question: how can the United States finally control the epidemic? This is the key to quell the financial turmoil. Before that, the roller coaster market for US stocks is likely to continue. We should continue to fasten our seat belts.