First-time jobless claims in the U.S. last week set a new low in more than a year since the outbreak of the epidemic. Federal Reserve Chairman Jerome Powell continued his dovish stance on the second day of congressional hearings, reiterating that while inflation has accelerated to the upside, it is too early to start withdrawing easing, while the Bank of Canada’s third tapering of bond purchases, a new statement from Bank of England officials, and St. Louis Fed President Bullard reiterating that it is time to withdraw easing all reveal some hawkish tendencies from global central banks.
Investors weighed the comments of central bank policy makers and economic data such as China’s second quarter GDP, waiting for new market catalysts. Most of the major stock indexes in Europe and the United States fell, Treasury yields mostly continued to move down, and the dollar restarted its rally on Wednesday just after the retreat. The new “King of Debt” Gundlach commented that the reason why the price of U.S. bonds can still rise when inflation data is high, yields can still fall, because the financial system is full of liquidity, U.S. bonds are buyers.
U.S. stocks, including Wednesday’s record high Apple, seven blue-chip technology stocks fell during the day, technology and energy-led sector pressure on the broader market, the Nasdaq fell for three days in a row, the S&P and the Dow were down during the day. Morgan Stanley and U.S. Bancorp second-quarter earnings better than expected, shares opened higher in early trading, up 1.7% and 4.8%, respectively, the financial sector in general rebounded. aIG announced a $2.2 billion sale of life and retirement services business to BlackRock part of its shares rose more than 3.8%, BlackRock once rose more than 4%. European stocks, on the other hand, were led lower by energy stocks hit by the continued decline in crude oil.
Bank of England Deputy Governor Dave Ramsden said the central bank may need to consider tightening money sooner than expected because inflation could rise to 4 percent later this year. Bank of England monetary policy member Michael Saunders said that if economic activity and inflation continue to meet current trends, it may be appropriate to “quickly” remove some of the monetary stimulus. U.K. government bond yields rebounded, while other European countries’ bond yields remained lower; the pound became the only G10 currency to rise against the dollar.
Cryptocurrencies failed to repeat Wednesday’s reversal as the dollar rallied, with bitcoin approaching $31,000 intraday, back to a nearly three-week low, while only coin was the only mainstream cryptocurrency to retain its gains.
Among commodities, crude oil sank further, with U.S. oil hitting a near one-month low. OPEC+ has yet to reach a deal to increase production, but analysts expect the UAE to eventually reach a compromise with other oil producers, and U.S. gasoline inventories increased last week instead of falling, fueling market concerns about supply, and some countries restarted their anti-epidemic blockade due to a mutated virus, hitting the demand outlook; gold, fueled by continued downward movement in U.S. bond yields hit another fresh high of about one month; most industrial metals such as copper rallied, with Lund tin accelerating to rise above $33,000 for the first time in a decade, commenting on the release of economic data as the market looks to China for new stimulus initiatives.
Dow hits second highest again Energy and IT sectors lead S&P lower Nasdaq three consecutive negative Amazon leads leading tech stocks Chip stocks drag down broader market Morgan Stanley and some other bank stocks rally
The three major U.S. stock indexes opened lower collectively. The Dow Jones Industrial Average, which had fallen 170 points earlier in the session, had turned higher more than once in early trading and held on to gains after turning higher at midday. The S&P 500 opened lower and stayed down. The Nasdaq Composite Index continued to move down in general, once down more than 1% in midday trading, only in the early trading had a short turn up.
Finally, the three major stock indexes only the Dow closed higher, up 53.79 points, or 0.15%, at 34,987.02 points, refreshing the closing second highest set on Wednesday, up two days in a row. The S&P closed down 0.33% at 4360.03 points, down from the second highest close set on Wednesday. The Nasdaq closed down 0.7%, its biggest closing loss in a week, at 14,533.13, down three days in a row.
The value-cap-dominated small-cap index Russell 2000 closed down 0.55 percent. The tech-heavy Nasdaq 100 closed down 0.71%, underperforming the three major indices for the first time this week.
Of the S&P 500’s 11 major sectors, five closed lower and six closed higher on Thursday. Declining sectors, down 1.4% in energy led the decline, followed by a decline of more than 0.8% in information technology, non-essential consumer goods and telecommunications services fell more than 0.6% and 0.5%, respectively, health care fell nearly 0.3%. Rising sectors, up 1.2% led by utilities, essential consumer goods and finance rose 0.4% or so industrial and real estate rose more than 0.2% and 0.1%, respectively, materials rose slightly.
FAANMG six major technology stocks, in addition to Microsoft remained down throughout the day, the other all turned down during the day, Amazon closed down nearly 1.4% led the decline, Google parent company Alphabet fell nearly 1%, Facebook and Nifty fell more than 0.9%, Apple fell more than Apple fell more than 0.4% off the record high set on Wednesday, Microsoft fell more than 0.5%.
Chip stocks dragged down the performance of the broader market, semiconductor ETF SOXX fell more than 2%, chip stocks TSMC fell more than 5%, NXP, Nvidia, Microchip Technology fell more than 4%.
Some bank stocks rebounded, the five largest banks, Citi closed up more than 0.4%, JPMorgan Chase rose more than 0.2%, Morgan Stanley rose nearly 0.2%, all turned up in late trading, while Tuesday and Wednesday led by Bank of America fell more than 0.1%, Goldman Sachs fell nearly 0.3%. In addition, Wednesday closed up nearly 4% of Wells Fargo closed up more than 0.1% by virtue of the end of the turn up, U.S. Bancorp rose more than 3%.
After the announcement of the transaction, AIG closed up more than 3%, BlackRock closed up nearly 4%.
Most of the popular Chinese rose, Chinese ETF CQQQ rose nearly 0.5%, KWEB slightly up. Baidu rose more than 2%, Alibaba, Tencent ADR and Poundland were up more than 1%, and Jingdong rose nearly 1.9%. Although Tesla fell, but the three Chinese new energy vehicle stocks rose generally, Xiaopeng car and ideal car rose nearly 2%, Azera car rose more than 1%.
In Europe, the pan-European stock index Euro Stoxx 600 fell for two days in a row, just saying goodbye to record highs before falling into a one-week low. Among the sectors, only chemicals, which rose more than 0.1% on Thursday, and basic resources, which rose slightly, did not close lower. Retail and oil and gas both fell about 2.8%, far ahead of other sectors. Among individual stocks, due to rising raw material prices and product volume climbing costs and issued a profit warning of wind energy companies Siemens Gamesa plunged more than 14%, the largest decline in two years, in the bottom of the Stoxx 600 constituents performance. Following Tuesday, major European stock indexes fell across the board for the second day this week, falling at least about 1% on Thursday.
The 10-year U.S. bond yield fell below 1.30% intraday for the first time this week
After leaving a week high on Wednesday, U.S. 10-year benchmark Treasury yields continued to fall on Thursday, U.S. stocks once fell below 1.30% at lunchtime, back to Friday’s intraday level, the first intraday drop below 1.30% in four days this week, an intra-day drop of nearly 5 basis points to about 1.30% at the close of U.S. stocks, an intra-day drop of more than 4 basis points.
European government bonds were mostly higher in price on Thursday, but British bond prices retreated and yields rebounded. British 10-year benchmark government bond yields rose 3.6 basis points during the day to 0.664%; German bond yields fell 1.4 basis points during the same period to -0.334%.
U.S. oil fell more than 2% again, hitting a new low of nearly one month
International crude oil futures fell for two consecutive days. Brent September crude oil futures closed down 1.72% at $73.47 per barrel, a new low since July 7, and the first time since July 7 to close below $74.
U.S. WTI August crude oil futures closed down 2.02% at $71.65/barrel, hitting a new low for the same-month contract since June 18 and closing below $72 for the first time since June 18.
Although the U.S. oil fell more than 2% for the second consecutive day, but the decline in both U.S. oil and BOP was moderated from Wednesday. U.S. oil and BOP closed down 2.82% and 2.26% respectively on Wednesday, with U.S. oil down 4% and BOP down more than 3% during the session.
U.S. gasoline and natural gas futures also continued to fall. NYMEX August gasoline futures closed down 1.9% at $2.25/gallon, down two days in a row, while NYMEX August natural gas futures closed down 1.3% at $3.61 per million British thermal units, down three days in a row.
Dollar index rallies, up for third day this week Bitcoin pushes down to $31,000 for a near three-week low Cryptocurrencies among cryptocurrencies with coin alone up
The ICE dollar index (DXY), which tracks the exchange rate of a basket of six major currencies of the dollar, had turned down in the Asian midday and early European shares, European shares fell below 92.30 in the morning when the new daily low, down nearly 0.15% during the day, European shares turned up in the middle of the day after a road trip, U.S. shares approached 92.70 in the midday, up more than 0.3% during the day, but and Tuesday and Wednesday rose above 92.80 approaching last Wednesday’s record since the beginning of April There is still a distance between the intraday high level.
By Thursday’s U.S. stock market close, the dollar index was at 92.50 above 92.575, up nearly 0.2% intraday, the third day of gains this week; the Bloomberg Dollar Spot Index rose 0.3%, recovering most of Wednesday’s losses.
Offshore yuan (CNH) retreated, with the offshore yuan at 6.4613 yuan against the U.S. dollar at 5:59 p.m. GMT on the 16th, down 21 points from Wednesday’s late New York session, falling away from the late New York high set on Wednesday since June 17, and trading overall in the 6.4568-6.4717 yuan range during the session.
Bitcoin (BTC) continued its downward spiral, with the U.S. stock once falling below $31,200 at midday, hitting a new intraday low since June 26, down more than $2,000 from the intraday high at the early Asian market point, a percentage drop of more than 6%, with the U.S. stock closing below $31,700, down more than 3% in the last 24 hours.
Ether (ETH), the second largest cryptocurrency by market capitalization after Bitcoin, fell below $1,890 at midday in U.S. stocks, approaching the new intraday low set on Wednesday when it fell through $1,880 since June 27, and fell nearly 8% from the intraday high in early Asian trading, with U.S. stocks closing below $2,000, down more than 3% in the last 24 hours.
CoinMarketCap data shows that most mainstream cryptocurrencies retreated on Thursday, and by the U.S. close, Dogcoin (DOGE), the eighth largest cryptocurrency by market capitalization, was down more than 5% in the last 24 hours, the worst performance among the top 10 cryptocurrencies, while Litecoin (LTC), the 13th largest cryptocurrency, fell nearly 5%, Bitcoin Cash (BCH), the 12th largest cryptocurrency, fell more than 3%, and the fifth and sixth largest cryptocurrency Cardano (ADA) and Ripple (XRP) fell nearly 3%, while the fourth largest cryptocurrency Coin (BNB) rose nearly 3%, and only Coin was up among the top 10 cryptocurrencies.
London-based copper recovers $9,400, London-based tin hits $33,000 for the first time in a decade, nearing all-time highs, gold and platinum hit one-month highs
London base metals futures were mostly higher on Thursday. Copper and nickel rebounded, with copper regaining $9,400, its highest level in four days this week, and still failing to recover the $9,500 barrier, while nickel approached the four-month high set on Tuesday. Zinc ended a three-day losing streak, bidding farewell to a more than two-week low. Lead ended its two-day losing streak. However, LEN tin rose for four days in a row, hitting a ten-year high for four days in a row to close at $33,130 per ton, closing at $33,000 for the first time in a decade and approaching a record high. But LUN aluminum fell for two days in a row, falling further away from the one-week high.
New York gold futures rose for the third day in a row, COMEX August gold futures closed up 0.2% at $1829.00 per ounce, the second consecutive day of record closing high since June 16, approaching $1830 for the first time since June 16, but the rise was less than the 0.8% close on Wednesday. New York silver and platinum futures rose for the second day in a row, with silver futures closing up 0.5%, a new high since July 2; platinum closed up nearly 0.9%, a new high since June 16. Palladium fell for the third day in a row, closing down 3.4%, a new low since June 29.
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