Closing: The three major U.S. stock indexes fluctuated and closed down, and popular Chinese concept stocks fell

The Bank of Canada, which was the first among the G7 countries to significantly raise interest rates by 50 basis points, raised interest rates by 50 basis points as scheduled, maintaining a hawkish tone, saying that inflation will rise further and may act more forcefully if necessary. The Canadian dollar and Canadian bond yields continued to rise.

U.S. economic data showed signs of cooling. The number of JOLTS job vacancies favored by U.S. Treasury Secretary Yellen in April fell by more than 450,000 from a record high in March, and the ISM manufacturing employment index shrank for the first time since November 2020, all revealing a potential shift in the employment situation. Markets are expecting May nonfarm payrolls released on Friday to also show a slowdown in manufacturing employment from the previous month. New orders and factory output continued to rise, pointing to solid underlying demand for U.S. manufacturing. A number of statistics show that the price sub-item of the US manufacturing industry is still at a high level. The Federal Reserve’s Beige Book report on regional economic conditions showed that high inflation was unbearable, and growth in some regions slowed down.

This year’s FOMC vote committee, St. Louis Fed President Bullard reiterated that he no longer recommends a one-time sharp interest rate hike of 75 basis points, and instead supports a single rate hike of 50 basis points, and does not recommend raising interest rates too quickly. The next year vote committee, San Francisco Fed President Daly said that interest rates need to be raised quickly to the neutral level of 2.50%. If supply and demand continue to imbalance, interest rates may be raised to a restrictive level, but monetary policy after July depends on data. Cleveland Fed President Mester, who also voted this year, will discuss the economic outlook on Thursday.

The Fed began shrinking its $8.9 trillion balance sheet on Wednesday, initially at a pace of $47.5 billion a month and gradually raising the cap to $95 billion a month over three months. Analysts say this is equivalent to an additional interest rate hike, and U.S. stocks may continue to fall in the next few months. Dimon, the chief executive of JPMorgan Chase & Co., the largest U.S. bank by assets, warned that the U.S. economy was “heading for a hurricane” due to the conflict between the Federal Reserve and Russia and Ukraine.

After the euro zone’s record inflation data was released yesterday, the euro zone and UK manufacturing Purchasing Managers’ Index (PMI) continued to weaken on Wednesday, hitting their slowest growth since November 2020 and January 2021, respectively. The European Central Bank’s “big hawk” and Austrian Central Bank President Holzmann said that inflation has broken a record, and the European Central Bank should raise interest rates by 50 basis points in July, and was supported by a Deutsche Bank research report.

U.S. stocks opened higher and moved lower, cyclical stocks performed the worst, most of Star Technology turned down intraday, China Concept Electric Vehicles dazzled, and European stocks fell more than 1%

On Wednesday, June 1, in the first trading day of June, the three major U.S. stock indexes originally opened higher collectively, and the Nasdaq, which is dominated by technology stocks, quickly rose by more than 1% at the opening. But U.S. stocks turned lower within an hour as U.S. manufacturing employment shrank for the first time since November 2020.

At the opening bell, the Dow rose 0.68%, the Nasdaq rose 0.79%, the S&P 500 rose 0.62%, and the most popular ones are likely to have outstanding gains. Electric vehicle manufacturers handed over brilliant transcripts. Xiaopeng Motors, Li Auto, and Weilai all rose by more than 1%.

At the beginning of the session, the Dow rose by more than 280 points or 0.9%, and once rose above the 33,000-point integer. The S&P broader market rose as much as 0.8%, the Internet index ETF and the energy industry ETF rose 2%, the global aviation industry ETF fell 0.8%, and the financial industry ETF fell 0.4%. The Nasdaq rose as much as 156 points or 1.3%, the Nasdaq 100 rose nearly 180 points or 1.4%, and the Russell 2000 small-cap stocks rose as much as 0.7%.

40 minutes after the opening bell, as the U.S. ISM manufacturing employment index fell below the 50 line for the first time in a year and a half in May, the gains of U.S. stocks narrowed rapidly. The S&P and the Dow fell first, followed by the Nasdaq and Russell small-cap stocks. back. In the opening hour, the Dow fell by more than 200 points, the S&P Bank Index fell by 2%, and the Nasdaq 100 turned down. At midday, U.S. stocks fell more than 1% across the board, with small-cap stocks down nearly 2%.

The Dow fell the deepest 405 points or 1.2%, the S&P fell the deepest 1.4% and once fell below 4100 points, the Nasdaq fell the deepest 180 points or 1.5%, fell below the 12,000-point integer, and the Nasdaq 100 fell the deepest 184 points or fell 1.5%, Russell small-cap stocks fell the deepest 1.8%.

By the close of trading, major U.S. stock indexes had fallen for two straight days, erasing most of their gains since last Thursday. The S&P 500 closed down nearly 31 points, or 0.75%, at 4,101.23 points. The Dow closed down nearly 177 points, or 0.54%, at 32,813.23 points. The Nasdaq closed down nearly 87 points, or 0.72%, at 11,994.46 points. The Nasdaq 100 fell 0.7%, while Russell small-cap stocks fell 0.5%.

According to the analysis, the inflation panic has turned into a growth panic, and the market is worried that inflation has not peaked, which will stimulate the Federal Reserve to make a more hawkish policy response, thereby increasing the possibility of the economy falling into recession. This year, the Federal Reserve will raise interest rates by 50 basis points three times. The probability remains high. Citigroup warned that “the pain of global equity markets is not over”, and the latest risk of lower corporate earnings forecasts will send the U.S. stock market back into a bear market.

Except for Amazon, star technology stocks turned lower during the session and closed mixed. “Metaverse” Meta and Netflix both rose 3% and then fell more than 2%, Apple rose 2% and then fell slightly, Microsoft and Google parent company Alphabet both closed slightly higher after the intraday decline, Amazon rose more than 4% and then closed It rose more than 1%, rising for five consecutive days to a new one-month high. Tesla rose 1.8% and then fell more than 2%, nearly giving back its gains since last Thursday. The surprise departure of Sheryl Sandberg as Meta’s chief operating officer deepened the company’s share price decline.

Chip stocks also turned lower during the session. The Philadelphia Semiconductor Index rose 1%, then turned down 2.8% and closed down 1.6%. The daily high once rose above 3,100 points, falling for two consecutive days, and it was close to giving up all gains since last Thursday. Intel and AMD halved and closed down 0.6%, while Nvidia fell nearly 2%.

Goldman Sachs believes that software stocks that have been hit hard in the early stage, such as Microsoft, will usher in a good bargain-hunting opportunity. Salesforce, a Dow component and cloud-based enterprise customer management software company, raised its full-year profit forecast.

The material sector and financial stocks related to the economic cycle led the broader market, with Goldman Sachs down about 3% and JPMorgan Chase down more than 2%. Travel-related stocks also struggled, with Boeing down about 2 percent and leading the Dow’s losses. Norwegian Cruise Line and United Airlines fell more than 5%.

Energy stocks rose with oil prices. Delta Air Lines raised its second-quarter revenue outlook to return to 2019 levels, but warned that it would not increase capacity before the end of the year. The stock price fell more than 5%, and other airline stocks fell broadly. Levi’s fell 1.5% and then rose more than 1%, raising its sales outlook for the next five years. British shoe brand Dr. Martens rose nearly 30% at one point, and it expects annual revenue to be higher due to price increases. Deutsche Bank’s asset management DWS Group fell more than 6%, German prosecutors raided the headquarters of Deutsche Bank and its major shareholder Deutsche Bank on allegations that ESG investments misled investors, and the CEO of DWS resigned.

Popular Chinese concept stocks also turned down intraday. China Prospective ETF KWEB fell 1.9%, CQQQ fell 0.8%, and the Nasdaq Golden Dragon China Index (HXC) fell 1.6%. Among the four Nasdaq 100 constituents, Jingdong fell 0.6%, Pinduoduo fell 2.7%, NetEase fell 2.9%, but Baidu rose 0.7%. Among other stocks, Alibaba fell 2.8%, Tencent ADR fell 0.5%, but Station B rose 0.9%. “Three idiots in car manufacturing” only Xiaopeng Motors fell, NIO and Ideal Motors rose by more than 1%, and the new Chinese car-making forces accelerated their deliveries in May. Ideal and Xiaopeng Nezha both exceeded 10,000. increase. Weibo’s first quarterly report exceeded expectations, and advertising revenue maintained positive growth. It closed slightly down after rising more than 5%.

European stocks fell on fears that the record-breaking inflation data would strengthen the case for a hawkish ECB to raise interest rates sharply. The pan-European Stoxx 600 index closed down 1.04%, falling for two consecutive days, basically erasing all gains since last Thursday, but the auto index rose 2% to a two-month high. U.K. and Italian stock indexes both fell nearly 1 percent. Russia’s RTS index closed up more than 1.1 percent.

Interest rate hike expectations have boosted, and the yields of European and American government bonds have risen sharply. Concerned about economic growth, the U.S. bond yield curve has flattened rapidly

Inflation and interest rate hikes continued to be the focus. Under the collective boost of expectations of interest rate hikes by major central banks around the world, bond yields in Europe, the US and Canada rose sharply. The impact of the central bank’s hawkish interest rate hikes on economic growth also continued to worry investors, with the U.S. Treasury yield curve flattening.

The yield on the 10-year U.S. Treasury bond rose by nearly 11 basis points during the day, reaching a daily high of 2.95%, a two-week high since May 18. The 30-year long-term bond yield rose by nearly 5 basis points and once rose above 3.10%. The two-year U.S. bond yield, which is more sensitive to monetary policy, rose by up to 13 basis points, with a daily high of 2.67%, both hitting two. The five-year yield also rose more than 13 basis points to a new weekly high. In early U.S. stocks, U.S. bond yields had pulled back after an unexpected contraction in U.S. ISM manufacturing employment.

Yields on 10-year Italian bonds rose more than 9 basis points, leading the euro zone sovereign bond yields, amid a rebound in expectations for a rate hike by the European Central Bank. Yields on 10-year German and French bunds both rose more than 6 basis points, while 10-year British bund yields rose more than 5 basis points. At the same time, the Canadian bond yield rose on the “Central Bank Rate Hike Day”, the 10-year yield rose by nearly 12 basis points and stood at 3%, and the two-year yield rose by more than 16 basis points.

The tight supply outweighed the impact of the potential OPEC+ excess production increase, and the international oil price rose nearly 3 US dollars in intraday trading , both hovering at 118 US dollars

International oil prices closed up sharply narrowed. WTI July crude oil futures closed up $0.59, or 0.51%, at $115.26 a barrel. Brent crude oil futures for August ended up $0.69, or 0.60%, at $116.29 a barrel.

U.S. oil WTI rose as high as $3.19 or 2.8% in the day. The daily high rose above $117 and approached $118, re-approaching the nearly three-month high since March 9. International Brent rose as high as nearly $3 or 2.6%, and the daily high rose above $118, close to a two-month high. Both oil prices posted their sixth straight month of gains in May, their best performances since early 2011.

The analysis pointed out that an improving demand outlook and the European Union’s decision to impose the toughest sanctions on Russian oil are fueling supply concerns and pushing up oil prices. OPEC+ will decide July output on Thursday. People familiar with the matter said that OPEC+ did not discuss excluding Russia from the oil supply agreement. Previous analysis believed that the Gulf countries may increase production and limit the upside of oil prices. However, the fundamentals of supply and demand imbalances for crude oil, diesel and gasoline during the peak summer travel period in the northern hemisphere are the main catalysts for oil prices. OPEC lowered its forecast for the total global supply glut this year.

According to CCTV news, the national average price of regular gasoline climbed 5 cents on Wednesday to reach a new high of $4.67 a gallon. U.S. natural gas futures extended gains to 6.8% at $8.6960 per million British thermal units. But European natural gas ended lower, with ICE UK natural gas futures down 13% and European benchmark TTF Dutch natural gas futures down nearly 6%.

Interest rate hike expectations made the dollar up 1% and returned to 102 , the dollar rose above 130 against the yen, approaching the highest in 20 years

The market priced in that the Federal Reserve raised interest rates sharply by 50 basis points in June and July. The dollar index rose as much as 1% on Wednesday and returned to the top of the 102 mark, rising for two consecutive days to the highest since May 23, hitting a record of 101.29 on Monday. rebounded from a one-month low.

The euro fell more than 100 points or as deep as 1% against the dollar, falling below the 1.07 mark, retreating from a one-month high set on Monday, but rebounding significantly from a five-year low hit at 1.0348 in early May. The dollar rose more than 1% against the yen and rose above the 130 mark, re-approaching a 20-year high. USD/CAD fluctuated by 23 points in the short-term after the Bank of Canada announced a 50 basis point interest rate hike, pushing down to 1.26, the deepest drop of 0.3% in the day.

The hawkish expectations of the central bank have caused risk sentiment to ebb, and mainstream cryptocurrencies, which are positively correlated with changes in U.S. stocks, generally fell. The largest leader by market value, Bitcoin, fell nearly 7% and fell below the $30,000 round. Ethereum, the second-largest by market capitalization, fell more than 8% and fell below $1,800.

Inflation hedge gold closed up and pushed up to $1850, improving demand prospects pushed up London copper back to $ 9500

Gold futures for August delivery on COMEX closed up 0.04% at $1,848.70 an ounce, its fourth day of gains in five sessions.

Spot gold rose by more than $12 or 0.7%. The daily high was above $1,850. Earlier, it fell below $1,830 and hit a new two-week low. It was suppressed by the joint rise of the US dollar and US bond yields. But inflation concerns eventually led to a rebound in gold, a hedge against high inflation.

The demand outlook has improved and the world’s largest copper producer Chile’s copper production in April fell by nearly 10% year-on-year. London copper closed up $52 and returned to the $9,500 integer. Other London base metals fell in general, dragged down by a stronger dollar. London zinc stopped rising for three consecutive days, London nickel fell for two consecutive days, and London aluminum hit a new low in more than two weeks. However, the London Sea rose for four consecutive days. The intraday futures night market closed up and down differently, with iron ore up more than 2%.

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