The ECB adopted a symmetric inflation target of 2%, implying that it would keep easing for longer, but this dovish gesture failed to undo the decline in European stocks. Many governments around the world have recently restarted curfews or other epidemic prevention measures due to the spread of mutated viruses such as Delta; Japan declared a state of emergency in Tokyo for the fourth time during the epidemic, and all Olympic venues in the Tokyo metropolitan area were empty for events. The market fears that the epidemic backlash is hurting the economic recovery and European stocks plunged, with nearly 60% of sectors down at least 2%. European bond yields continue to fall also continued to pressure the banking sector.
U.S. stocks retreated, with the three major stock indexes posting their biggest intraday losses since May, with the financial, materials and technology sectors leading the decline. Some sectors such as energy, supported by a rebound in crude oil, rallied at midday, with the industrial sector turning up and the two leading technology stocks – Tesla, which had been down for days, and Amazon, which had been at a record high – also turning up, helping to narrow losses in the three major stock indexes. Some commentators say that the unexpected drop in U.S. bond yields earlier this week has been a warning sign that U.S. stocks, which are at high valuations, are now following the lead of their “best buddies” U.S. bonds and starting to reflect concerns about economic growth and mutating viruses.
Top Chinese stocks continue to sink on regulatory implications. China’s General Administration of Market Regulation urges e-commerce platform companies Taobao and Jindo to verify and deal with the sale of false test reports; the Consumer Protection Bureau of the CBRC says large Internet platforms charge 6%-7% attraction fees, pushing up the cost of financing companies; CCTV hot commentary says let school district houses “cool down” and let education equity The CCTV commentary said, let the school district house “cool” down, let education equity “hot” up. Education stocks New Oriental and Good Future once fell more than 10% during the session, highway education had fallen nearly 7%, drops once fell nearly 8%, Poundland fell more than 6%, Alibaba fell more than 4%. The three new energy vehicle stocks, including Azure, continued to fall despite the RideLink saying the chip shortage would ease significantly in the third quarter.
The market is concerned about whether the mutated virus will jeopardize the economic outlook, which in turn will affect the Fed’s process of withdrawing easing and the risk of inflation retreating. U.S. bond prices rose for the eighth consecutive trading day as yields continued to fall. The benchmark 10-year U.S. bond yield fell through 1.25% intraday for the first time since February, and the 30-year yield fell below 1.9% for the first time since February.
The ECB’s establishment of a new inflation target, coupled with concerns about the spread of a mutated virus, spurred the euro to strengthen, and the dollar index turned lower intraday, falling off a three-month high. Cryptocurrencies were not spared and retreated en masse, with bitcoin falling below $33,000.
In commodities, the official U.S. release of last week’s EIA gasoline inventory decline was almost 3.5 times higher than market expectations, and crude oil inventories fell 70% higher than market expectations, crude oil rallied, but uncertainty over production increases due to disagreements within OPEC limited crude oil gains; economic concerns pressured industrial metals such as copper mostly retreated; U.S. stocks fell originally favorable safe-haven asset gold, but gold prices turned lower during the day and lost ground after the bell at the important Psychological barrier of $ 1800. Analysis says, the U.S. stocks after hours plunge may trigger investors to sell gold and other part of the profit-making assets, seeking cash to make up for the loss.
Three major U.S. stock indexes hit the biggest intraday drop in more than a month and the biggest closing drop in nearly three weeks Financial sector led the decline Tesla Amazon rose New Oriental fell more than 9% again
The three major U.S. stock indexes opened lower collectively, gradually narrowing some of their losses after setting new daily lows in early trading. The S&P 500 index fell nearly 1.6% in early trading when it hit a new low since last Wednesday, June 30, the largest intraday drop since May 19, narrowing to within 0.8% at midday. The Dow Jones Industrial Average fell more than 530 points in early trading when it hit a new intraday low in two weeks since June 24, a percentage drop of more than 1.5%, the largest intraday percentage drop since June 18 and the largest intraday point drop since May 12, down less than 300 points at the end of early trading. The Nasdaq Composite Index fell 2% at the beginning of the session when it hit a new intraday low since June 25, the largest intraday decline since May 12, and the decline had narrowed to within 1% near midday.
Ultimately, the three major indices collectively closed lower, all hitting their biggest closing losses since June 18. The Dow closed down 259.86 points, or 0.75%, at 34,421.93 points, a new closing low since June 29. The S&P closed down 0.86% at 4320.82 points; the Nasdaq closed down 0.72% at 14,559.79 points, and the S&P both closed at the lowest level in the last four days.
Value stocks dominated the small-cap index Russell 2000 had fallen more than 2.6% at the beginning of the session, once close to erase all the losses in the afternoon, but since then the decline has expanded again, closing down 0.94%, continuing to lose ground on the broader market. The technology-heavy Nasdaq 100 index closed down 0.6%.
S&P 500 of the 11 major sectors, Thursday only a slight increase in the industrial one closed up, down nearly 2% of the financial leader fell, materials and telecommunications services fell more than 1%, information technology fell more than 0.9%, the smallest decline was less than 0.1% of real estate and non-essential consumer goods.
Most of the leading technology stocks fell, but Tesla, which closed lower for several days, fell more than 3.7% at the beginning of the day and turned up at midday, closing up nearly 1.3%. FAANMG six major technology stocks, down 2% at the beginning of the day, Amazon also turned up at midday, closing up more than 0.9%, the third consecutive day to close at a new high; while Google parent company Alphabet and Facebook fell more than 1%, Nifty fell nearly 1%, Apple fell more than Microsoft fell 0.9%.
Top Chinese stocks generally underperformed the broader market for the third consecutive day, with Chinese ETFs KWEB and CQQQ down more than 3% and 2%, respectively. On its sixth day of trading, Drip closed down nearly 6% and P&P Culture fell more than 25%. Among education stocks, New Oriental closed down more than 9% for the second day in a row, and High Way closed down more than 1.8%, but Good Future turned up to close up more than 0.5% in late trading. Among e-commerce stocks, Alibaba fell 3.8%, Jingdong fell more than 2%, and Jindo fell more than 1%. New energy auto stocks, Xiaopeng car fell more than 3%, Azera car fell nearly 1%, ideal car fell more than 0.7%. In addition, Tencent ADR and Baidu both fell more than 3%. After-hours MSCI confirmed the inclusion of DDT in its index on July 15, and DDT rose more than 1% after the bell.
In Europe, the pan-European stock indexes just rebounded on Wednesday plunged, with the Euro Stoxx 600 index hitting a new low since June 3 and the biggest closing drop since May 11. Sectors fell across the board on Thursday, with 11 of the 19 sectors down at least 2%, led by retail, which fell more than 3%, and basic resources, which fell nearly 3%. Among individual stocks, Dutch-listed Tencent’s major shareholder Prosus fell more than 4%. Among the major national stock indexes, German and British stocks are the largest decline since June 17, France and Italy and Western stocks are the largest decline since April 20.
The 10-year U.S. bond yield fell below 1.25% for the first time since February The 30-year yield fell below 1.90% for the first time since February
U.S. 10-year benchmark Treasury yields fell below 1.25% at one point in the European stock market, the first intraday drop through 1.25% since February 16, the third consecutive day of new intraday lows since February, down more than 6 basis points during the day, U.S. stocks rallied before the bell, erasing most of the decline, had a short re-up to 1.30%, U.S. stocks had been approaching 1.30% in the morning and midday trading.
The 30-year U.S. bond yield also fell below 1.90% when the 10-year yield hit a record low, also hitting a new low in more than four months, U.S. stocks had regained 1.90% in pre-market and stood steady at 1.90% in early trading.
The 30-year parity inflation rate, reflecting market expectations for inflation over the next 30 years, fell to a line of 2.18%, a new low since March.
By late New York, the 10-year U.S. bond yield was slightly above 1.29%; the 30-year U.S. bond yield was close to 1.927%, down about 2 and 1 basis points, respectively, during the day.
Yields on U.S. bonds of all maturities fell for an eighth consecutive day overall, with prices rising for eight straight days, the longest streak since November 2018.
European Treasuries ended their price streak on Thursday with the exception of German bonds, whose yields continued to fall. The yield on Britain’s benchmark 10-year Treasury note climbed 1.2 basis points to 0.612% during the day; the yield on German bunds fell 0.9 basis points to -0.307% over the same period.
The dollar index turned lower off a three-month high during the session, and bitcoin fell below $33,000 to a new low of more than a week
The ICE dollar index (DXY), which tracks the exchange rate of a basket of six major currencies, had risen above 92.79 in early Asian trading, approaching the intraday high set by Wednesday’s rise above 92.80 since early April, and fell nearly 0.16% during the day, before continuing to fall, with European stocks turning lower early in the session and U.S. stocks falling below 92.30 in early trading to set a new daily low, down more than 0.4% during the day.
By Thursday’s U.S. stock market close, the dollar index was below 92.40 at 92.374, down nearly 0.3% for the day; the Bloomberg Dollar Spot Index fell 0.2%.
Bitcoin (BTC) European shares fell below $32,200 during the day, hitting a new intraday low since last Sunday, June 27, down more than $2,000 from the early Asian session intraday high, a percentage drop of more than 7%, before rebounding, with U.S. shares having briefly regained $33,000 at midday and closing slightly below $33,000 in the U.S., down more than 4% in the last 24 hours.
Ether (ETH), the second-largest cryptocurrency by market capitalization after Bitcoin, fell below $2,130 during the European session to a new intraday low since last Saturday, July 3, and fell more than 11% from its intraday high in early Asian trading, before rebounding slightly, and remained below $2,200 at the U.S. close, down more than 8% in 24 hours.
CoinMarketCap data shows that mainstream cryptocurrencies retreated collectively on Thursday, with ETH leading the decline by the U.S. stock close, Dogecoin (DOGE), the seventh largest cryptocurrency by market capitalization, down nearly 8% in the last 24 hours, while the fourth and sixth largest cryptocurrencies, BNB and Ripple (XRP), fell nearly 6%, the 14th largest cryptocurrency, Litecoin (LTC), fell more than 5%, and the The 12th largest cryptocurrency, Bitcoin Cash (BCH), fell more than 4%, and the fifth largest cryptocurrency, Cardano (ADA), fell more than 3.7%.
Crude Oil Breaks Out of Three-Week Low, Ends Two-Goal Streak
International crude oil futures rebounded after back-to-back days of losses, erasing most of Wednesday’s losses and breaking out of a three-week trough.
U.S. WTI August crude oil futures closed up 1.02% at $72.94/barrel, off Wednesday’s record closing low for the spot contract since June 18; Brent September crude oil futures closed up 0.94% at $74.12/barrel, after hitting a new closing low for the main contract since June 17 on Wednesday.
U.S. gasoline and natural gas futures also ended a two-day losing streak. NYMEX August gasoline futures closed up 2.2% at $2.2552/gallon; NYMEX August natural gas futures closed up 2.6% at $3.688 per million British thermal units, both erasing Wednesday’s losses.
Copper retreats near two-week trough, tin falls off 10-year high Gold turns lower mid-day, ends five-game winning streak, leaves three-week high after losing $1,800
London base metals futures mostly retreated on Thursday, with copper giving back almost all of Wednesday’s gains and approaching the two-week trough hit on Tuesday. Tin ended a five-day gain streak and temporarily fell off a 10-year high. Zinc fell off a one-week high. Aluminum fell for a fourth straight day, hitting a two-week low. However, lead rebounded; nickel rose for two days, further off its two-week trough.
Gold futures in New York had risen nearly 1% during the European session, approaching $1,820, but turned down since the U.S. pre-market. Finally COMEX August gold futures closed down 0.1% at $1,800.20 per ounce, ending a five-day streak of gains, falling off the closing high set on Wednesday since June 16, after-hours losses expanded, losing the $1,800 mark, once below $1,794, down nearly 0.5% during the day. New York silver futures also turned lower during the day, eventually closing down 0.54% for the third consecutive day of losses. Platinum fell for three days in a row, closing down 0.7%. Palladium ended a three-day streak of gains.