Yesterday, as the market was worried about the resurgence of the epidemic, global risk aversion rose again. Major Asia-Pacific stock indexes fell collectively, U.S. stock index futures plummeted, and even the traditional safe-haven metals gold and silver fell together. The epidemic is like a knife that has always hung over the world. The “Sword of Damocles” above financial markets.
The U.S. stock index futures failed to continue the rebound momentum last Friday, and the three major stock index futures all declined fell, and the declines were more than 2%. Fear indicators rebounded quickly. After the Chicago Board Options Exchange Volatility Index (VIX) hit its largest weekly increase since February last week, the index rose 15.3% to 41.60 on Monday.
Asia-Pacific stock markets closed sharply lower, with South Korea’s KOSPI200 plunging 4.91%, the Nikkei Index also closing down 3.47%, European stock markets also opened sharply lower, and the European Stoxx Index fell sharply. More than 2%, the three major stock markets in Germany, France and the UK all fell by more than 2%. The A50 futures index and the Hang Seng Index also fell more than 2%.
Late last night, the Federal Reserve announced that it would begin to purchase individual corporate bonds through the secondary market corporate credit facility. So far, this emergency facility launched during the epidemic has only purchased investment companies. Debt exchange-traded funds (ETFs). The Fed said in a statement: “The index is composed of all bonds issued by U.S. companies in the secondary market that meet the minimum rating, maximum maturity and other standard requirements of the instrument. This indexation method will form the basis of the instrument’s current practice of purchasing ETFs. Supplement.” The corporate bond purchase facility is one of nine emergency lending programs announced by the Federal Reserve since mid-March to combat the economic impact of the COVID-19 epidemic. The $250 billion vehicle has invested about $5.5 billion in corporate bond ETFs so far.
Early this morning, Sina Technology reported that the U.S. government confirmed on Monday that it would amend the ban on U.S. companies doing business with Huawei and allow it to cooperate in developing next-generation 5G network standards. U.S. Commerce Secretary Wilbur Ross confirmed reports that the department was taking action. The U.S. Department of Commerce and other government agencies signed off on the rule change, which is now awaiting publication in the Federal Register as early as Tuesday, local time, according to sources familiar with the matter.
After the news was announced, U.S. stocks rebounded. As of the close, the S&P 500 Index rose 0.83% to 3066.59 points; the Nasdaq Index rose 1.43% to 9726.02 points; the Dow Jones Index rose 0.62% to 25763.16 points.
In terms of crude oil, the Russian Ministry of Finance issued a statement last night saying that as oil prices recover, Russia will set export tariffs on crude oil and fuel oil in July at US$37.8/ton, which is 6 More than four times the US$8.3/ton in January. According to Bloomberg calculations, if one ton is equal to 7.33 barrels, the export tariff equivalent to Russia’s crude oil and fuel refining in July is US$5.16/barrel.
In addition, Saudi Aramco will reduce July contract oil supply to five Asian customers by 10% to 40%, according to refinery officials familiar with the matter. The reduction in contracted supply was concentrated in heavier grades of crude oil from three of the customers. Contracted supplies from three other Japanese refineries were not cut in July after reductions in the previous month.
Yesterday, Brent crude oil and WTI crude oil both opened lower and fell 5% during the session. As of 2 a.m. today, Brent crude oil futures’ intraday gains expanded to 3%; WTI crude oil futures’ gains expanded to 2.2%.
In terms of the epidemic, there has been a sudden and unexpected increase in Beijing recently. Yesterday, the Beijing Municipal Government Information Office held the 117th regular press conference on epidemic prevention and control. According to the press conference, on June 14, nucleic acid testing institutions in Beijing tested a total of 76,499 people, with 59 positive results. Xu Hejian, deputy director of the Propaganda Department of the Beijing Municipal Party Committee and director of the Information Office of the Beijing Municipal People’s Government, said that a cluster of epidemics occurred in the Xinfadi market, and the risk of the epidemic spreading in Beijing is very high. Urgent and decisive measures will be taken, focusing on Xinfadi and surrounding areas. Implement the most stringent epidemic control and comprehensive traceability work, fully cover key areas, key areas, and key population groups, gradually expand the scope of testing, and promptly discover confirmed cases and asymptomatic infections.
In addition, from 0 to 24:00 on June 14, 3 new confirmed cases of new coronavirus pneumonia were reported in Hebei Province (resulting from the newly confirmed local cases in Beijing on June 11 close contacts). Baoding, Hebei Province declared wartime status and activated the wartime mechanism.
As for the epidemic in the United States, as measures are relaxed nationwide, several states in the United States have reported a recent surge in Covid-19 cases. The number of new cases in the United States exceeded 25,000 on Saturday. Refreshing the highest level since May 2. The number of infections in eight states in the United States in the past three days has reached the highest record since the epidemic. Arkansas, North Carolina, Texas and Utah all set records for hospitalizations on Saturday, and hospital bed occupancy in South Carolina reached 69% to 77%. The latest data from Johns Hopkins University shows that the disease has infected nearly 2.1 million people in the United States and killed more than 115,000 people.
Why did financial markets and precious metals fall together?
Market participants said that the main reason for the general decline in global financial markets on Monday was related to the pessimistic expectations that another outbreak of the epidemic may bring to the market. “The main reason for the sharp decline in the market again on Monday may still be the continued spread of the epidemic and the risk of a second outbreak. With the rebound of the epidemic in various countries, market tensions are unprecedentedly high. Against this background�Silicon market has been significantly undervalued after the continuous decline in the early stage. The market once experienced a situation where the market discounted the spot price and the spot price was lower than the production cost. Under the combined influence of improved sentiment on the cost side and continued improvement on the supply and demand side, valuation repairs began to appear on the market over the weekend.
“For manganese silicon, there is still room for further improvement in its subsequent supply and demand. The current pressure on the supply side has not been significantly relieved. The effect of alloy manufacturers’ production reduction will gradually be reflected in the future. In terms of output. Coupled with the gradual improvement in manganese ore market sentiment, there are expectations for further upward restoration of valuations in the future, and the bullish approach can still be maintained in the short term.” Liang Haikuan said.
State Reserve auction boosts soybean futures
In terms of agricultural products, Affected by the domestic soybean auction, the main contract of Douyi futures has continued to rise in recent days.
According to the senior soybean analyst of Nanhua Futures, the auction target of China Grain and Oils Company on June 12 was the 2017 national standard second-class soybeans. It planned to auction 60,486 tons, all of which were sold at the lowest price. 4,800 yuan/ton, the lowest transaction price was 5,140 yuan/ton, the highest price was 5,270 yuan/ton, and the average price was 5,216 yuan/ton.
“The first auction of State Reserve soybeans was successful. The soybeans in 2017 were able to fetch such a high price. Calculated based on the average price, the price when shipped to the southern sales area is basically 2.75-2.8 yuan/jin. , compared with the old grain in 2019, the price difference is no longer large, indicating that the market is really short of grain. If this level of popularity can continue, it is expected to continue to support soybean prices.” A senior soybean analyst at Nanhua Futures said that in the near future, Russian soybeans are expected to resume their domestic demand. Supply news has spread again, and Russian soybean imports may resume from June 13. However, due to the impact of the international epidemic, current uncertainties have increased the probability of delayed shipments.
In terms of sales areas, the above-mentioned analysts said that the wheat harvest in Henan, Anhui and other places has basically ended, and soybean trading has gradually resumed. However, due to the limited grain sources at the grassroots level, traders have difficulty in increasing quantities. , mostly consuming inventory. At the same time, heavy rains in the south have caused a large area of vegetables to be damaged by water, thereby boosting the demand for soy products. The market has reflected that the recent shipment situation has improved significantly, boosting traders’ quotations, and also bullish the market for domestic soybeans. “Taken together, the soybean spot market maintains a stable and slightly stronger trend in the short term. On Monday, the 2009 contract increased its positions and hit a new high of 4,799 yuan/ton during the day. It stood firm on the 5-day line and closed the positive line throughout the day, and the futures price of the 2101 contract made up for the increase. The 2009 and 2101 contracts The spread has narrowed slightly,” she said. </p
