After suffering a week-long selloff, U.S. stocks rebounded led by value stocks, with the energy and financial sectors, which had led declines for days last week, leading the way and small-cap stocks outperforming. And some of the leading technology stocks, including Tesla and Amazon, fell dragging down the Nasdaq had fallen in early trading.
Along with the rally in U.S. stocks, the dollar turned lower intraday, falling off a 10-week high; U.S. bond prices retreated, with 10- and 30-year yields rebounding intraday, coming off four-month lows, and 2-year yields, which spiked on Friday, temporarily saying goodbye to one-year highs.
China’s central bank interviewed some banks and payment institutions about speculation in virtual currency trading. CCB, ICBC, Postbank and Alipay, which were interviewed by the central bank, announced that they are prohibited from providing services for virtual currency trading. Bitcoin and other cryptocurrencies plunged across the board, dropping more than 10% during the day.
As bitcoin plunged, related concept stocks fell hard. MicroStrategy (MSTR), a business intelligence software company that bought more than 13,000 more bitcoins on Monday, fell more than 10% intraday, with the division holding more than 100,000 bitcoins in total. Coinbase (COIN), the largest U.S. cryptocurrency exchange and the No. 1 cryptocurrency exchange, fell more than 3%.
In commodities, China’s National Development and Reform Commission and the General Administration of Market Regulation jointly investigated iron ore spot market transactions, with domestic iron ore plunging and other ferrous futures also dipping; crude oil futures accelerated to the upside, refreshing the new two-year high set last week after Iran’s next President Leahy made a tough statement at his first press conference after his election; precious metals such as gold, which fell on Friday, and copper, such as LON, added to the falling dollar Base metals such as copper rebounded.
In European markets, European stocks also rebounded, while European bond prices fell and yields rebounded. Commentary said that optimism about the economic recovery was fueled by a speech by European Central Bank President Christine Lagarde, who said that economic growth in the eurozone could rebound faster than expected as consumers start spending again, and reiterated that the ECB will keep its accommodative monetary policy.
Dow ends five-month losing streak with biggest gain in three and a half months S&P hits biggest gain in two and a half months Energy sector rises over 4% to lead small-cap indexes up over 2% Bitcoin concept MSTR falls nearly 10%
The three major U.S. stock indexes, the S&P 500 and the Dow Jones Industrial Average both opened higher, the Nasdaq Composite Index opened slightly higher and then quickly turned lower, turning up in early trading, the relative worst performance. The S&P has risen more than 1% at the end of the morning session, the Dow was up more than 600 points at lunchtime, with a maximum gain of nearly 620 points, a percentage increase of more than 1.8%. The Nasdaq fell 0.5% in early trading when the new daily low, and rose more than 0.8% in midday trading when the new daily high.
Finally, the three major indices closed up collectively for the first time since June 11, the S&P and the Dow all erased Friday’s losses, respectively, to end a four-day and five-day losing streak.
The Dow closed up 586.89 points, or 1.76%, at 33876.97 points, the largest closing percentage gain since March 5 and the largest point gain since March 1, out of the closing trough since April 1 hit last Friday, down more than 500 points on Friday fell nearly 1.6% to create the largest decline on May 12. The S&P closed up 1.4%, the largest closing gain since April 5, after falling about 1.3% on Friday the biggest drop since May 12 and hit a new low since May 21. The Nasdaq closed up 0.79% at 14,141.48 points, after closing down 0.92% on Friday.
Small-cap stocks were well ahead of the broader market, with the value-cap-dominated small-cap index Russell 2000 opening higher and closing up 2.16%, nearly erasing all of Friday’s losses. The tech-heavy Nasdaq 100 index closed up 0.62%.
Dow components, American Express rose more than 4%, Boeing rose more than 3%, Chevron rose nearly 3%, Goldman Sachs rose more than 2%. S&P 500 of the 11 major sectors, Monday only fell more than 1% of the utilities closed down, energy rose more than 4%, up far more than other sectors, followed by more than 2% of finance, real estate rose more than 1.9%, the bottom of the increase is to close less than 0.1% of health care and more than 0.1% of information technology.
Most of the leading technology stocks closed up, but Tesla had fallen more than 2% in early trading, turned up at lunchtime, and then turned down at the end of the day, closing down 0.4%. FAANMG six major technology stocks, only down more than 0.7% of Nifty and down more than 0.9% of Amazon closed down, Apple, Microsoft, Facebook were turned up in early trading, closed up 1.4%, 1.2% and 0.8%, respectively, Google parent company Alphabet Alphabet, Google’s parent company, closed up 1.4%, and only turned down briefly early in the day.
Among bitcoin and blockchain-related concept stocks, MicroStrategy (MSTR) closed down 9.7% and Coinbase closed down more than 2.9%. Among blockchain Chinese stocks, Ninth City (NCTY) fell more than 11%, while two major mining machine makers, Ebon International (EBON) and Kanan Technology (CAN), fell more than 8% and 7% respectively, China Net Carrier (CNET) fell more than 6%, and Xunlei (XNET) fell more than 5%.
Most of the popular Chinese stocks fell, Zhihu fell nearly 5%, Beili Beili fell 4%, Poundland, Xiaopeng car fell more than 3%, Tencent ADR fell more than 1%, Azera car fell more than 0.8%, Alibaba fell nearly 0.6%, Baidu fell more than 0.4%, ideal car closed flat; microblogging rose more than 3%, the pre-market rumors have reached a privatization agreement of Mileage to rise more than 2%.
In Europe, after hitting its biggest drop in more than five weeks on Friday, the pan-European stock index Euro Stoxx 600 hit its biggest closing gain since June 1, coming out of a two-week low. In various sectors, up nearly 3% of the automotive and components is leading, followed by more than 1.6% rise in chemicals. Among individual stocks, shares of Morrisons, the U.K.’s fourth-largest supermarket chain, surged 34.6 percent, the best performance among the Stock Exchange 600 constituents. The division rejected a takeover bid worth 5.52 billion pounds from private equity firm Clayton, Dubilier &Rice. Major European stock indexes rebounded collectively on Monday, with Germany’s stock index, backed by auto stocks, posting its biggest gain in a month.
Dollar index falls off two-month high Bitcoin falls below $32,000 for first time in two weeks Ether hits four-week low Dogcoin falls more than 20%
The ICE Dollar Index (DXY), which tracks the exchange rate of a basket of six major U.S. dollar currencies, had been above 92.30 in early Asian trading, up 0.16% when it set a new daily high, and continued to fall after European stocks turned lower early in the session, with U.S. stocks falling below 91.83 at lunchtime, down more than 0.4% during the day, falling away from the intraday high set since early April when it rose above 92.40 on Friday.
By Monday’s U.S. stock market close, the dollar index was below 91.90, down 0.4% intraday; the Bloomberg Dollar Spot Index fell 0.4%, giving back most of Friday’s gains.
The offshore yuan (CNH) fell for a seventh straight day, with the yuan at 6.4672 against the dollar at 5:59 p.m. GMT on 22nd, down 56 points from Friday’s end of trading in New York, having approached the 6.48 mark during the day, a new intraday low since May 6.
Bitcoin (BTC) continued to move lower on Monday, European shares had fallen below $31,800 during the day, hitting a new intraday low since June 8, falling below $32,000 for the first time since June 8, down more than $4,000 from the intra-day high, a percentage drop of more than 12%, since then the decline has narrowed, the U.S. shares were once back on $33,000 in early trading, the U.S. shares closed above $32,600, the latest down about 8% in 24 hours.
Ether (ETH), the second largest cryptocurrency after Bitcoin in terms of market capitalization, had fallen below $1,900 during the European session, continuing to set a new low since May 23, down nearly 17% from the intra-day high, and closed above $1,940 in the U.S., down more than 12% in 24 hours.
CoinMarketCap data shows that mainstream cryptocurrencies had all fallen more than 10% during the day on Monday, and by the close of U.S. stocks, Dogecoin (DOGE), the seventh largest cryptocurrency by market capitalization, had fallen the most in the last 24 hours with a cumulative drop of more than 25.4%, while the 13th largest cryptocurrency, Litecoin (LTC), fell more than 12%, and the fifth, sixth and 12th largest cryptocurrencies, Cardano (ADA), Ripple (XRP) and Bitcoin Cash (BCH) all fell more than 11%, and the fourth largest cryptocurrency, Coin (BNB), fell more than 10%.
10-year and 30-year U.S. bond yields turn higher after hitting four-month lows
U.S. 10-year benchmark Treasury yields had fallen below 1.36% to 1.354% in early Asian trading, hitting a four-month intraday low, down more than 7 basis points during the day, and have continued to rise since then, with European stocks accelerating upward after the opening bell, and European stocks erasing all declines and turning up during the day, with U.S. stocks rising above 1.49% in early trading, to about 1.49% at the close of U.S. stocks, up 5 basis points during the day.
30-year U.S. bond yields also V-shaped rebound, Asian markets had fallen below 2.00% to 1.929% in early trading, three consecutive trading days to a new four-month low, European stocks turned up during the day, U.S. stocks closed slightly above 2.10%, up more than 10 basis points from the intra-day low.
2-year U.S. bond yields turned down in early European stocks, and turned up during the day, U.S. stocks rose above 0.27% at the beginning of the session, approaching the one-year high set by the breakthrough of 0.28% on Friday, but then quickly fell back, U.S. stocks turned down in early trading, erasing the decline at lunchtime, to the U.S. stocks closed only slightly higher than the same period last Friday.
European government bonds fell in price collectively on Monday, with British and German bond yields rebounding. British 10-year benchmark government bond yields rose 1.6 basis points to 0.769% during the day; German bund yields rose 2.9 basis points to -0.171% during the same period.
The domestic black system in general fell iron ore fell nearly 9% after the night trading and fell more than 4% international crude oil hit a new high of more than two and a half years and the largest increase in four weeks
Domestic daytime black futures fell across the board, iron ore closed down nearly 9%, hogs fell nearly 7%, coke fell more than 5%, wire rod, hot coils, threads, coking coal fell more than 4%, the night black decline has eased, iron ore closed down more than 4%, hot coils fell 2.88%, threads fell 2.34%, coke, coking coal fell more than 1%, power coal fell slightly
International crude oil futures rose for two days in a row, the U.S. WTI crude oil rose more than 2% during the day, once rose above $ 73, Brent crude oil rose more than 1%, during the day had approached $ 75.
Finally, WTI July crude oil futures closed up 2.8% at $73.66/barrel, with the July contract set to expire on Tuesday, and the WTI main contract for August closed up 2.6% at $73.12/barrel. Brent August crude oil futures closed up 1.9% at $74.90/barrel.
Both U.S. oil and Brent oil posted their biggest closing gains since May 24 this year, with U.S. oil closing up more than 2 percent for the first time since June 1. U.S. oil refreshed the new closing high for the spot month contract since Oct. 10, 2018, set last Wednesday, and BSE hit a new high since Oct. 31, 2018.
Copper out of two-month trough fails to regain $9,200 Gold ends two-month negative streak out of two-month trough Palladium bids farewell to nearly April trough
London base metals futures rebounded on Monday except for the slightly lower LON lead, which was the only one to rebound on Friday. Copper, aluminum and zinc ended a two-day losing streak. Copper broke out of a two-month trough, but failed to regain $9,200 after falling below $9,200 for the first time in two months on Friday, closing at $9,180 per tonne, closing below $9,200 for the second consecutive day. LEN aluminum and LEN zinc broke away from their more than three-week and nearly eight-week lows, respectively. Lunnickel and tin reversed a four-day losing streak, both coming out of three-week lows. Lunn tin, which fell below $30,000 for the first time in two weeks on Friday, recovered from the $30,000 mark to close at $30,079/ton.
In precious metals, New York gold futures ended a two-day losing streak, out of a two-month low. COMEX August gold futures closed up 0.8% at $1782.9/oz, after hitting new lows in the main contract on Friday and Thursday since April 15 and April 30 this year, respectively. Although this Monday’s futures all but erased Friday’s losses, but last week gold fell about 5.9%, the biggest one-week decline since the week ended March 13 last year.
Platinum halted a four-day losing streak and closed up 0.9%, coming off a March 5 low hit on Friday. Palladium ended a two-day losing streak, closing up 3.6 percent at $2,558.3 per ounce, coming off a Feb. 26 low hit on Friday. New York silver futures rose for two days, COMEX July silver futures closed up 0.2% at nearly $ 26.03 / ounce, further out of the trough hit last Thursday since April 20, last week’s cumulative decline of 7.7%, down 7% on Thursday alone.
From the point of view of gains, gold, silver, copper and oil in the four major commodities, crude oil performed best on Monday.