US stocks fell, the Dow fell 250 points this week, US stocks Earthquake
7 am Beijing time, US stocks ended lower on Friday. The main stock index pulled up late, have emerged from the lowest intraday level at the close, the Dow closed down more than 250 points. New cases of the virus infected the global crown over 10 million. Investors are worried about the potential for outbreaks heavy blow to the world economy. US WTI crude oil plunged over 10%. 10-year US Treasury yields hit a record low. February non-farm payrolls strong.
Dow closed down 256.50 points, or 0.98%, reported 25864.78 points; Nasdaq down 162.98 points, or 1.86%, reported 8575.62 points; S & P 500 index fell 51.57 points, or 1.71%, reported 2972.37 points.
By market concerns about the global fight against the epidemic and its economy, the Fed emergency rate cut bailout, US presidential election primaries and some important economic data this week out of the US stock market roller coaster. Turbulent weeks of the major indexes, the Dow on Monday and Wednesday were up more than 1,100 points, Tuesday, Thursday, all recorded sharp decline. US stocks fell on Friday to continue to shock.
This week US stocks recorded gains. As of Friday's close, the Dow gained 1.77 percent one week, the S & P 500 index rose 0.59%, the Nasdaq Composite rose 0.1%. However, the three major indexes still in the callback area, namely the more their recent highs of more than 10%, less than 20%.
Friday, US Treasury yields continue to fall, the 10-year bond yields hit a record low. US Treasury bonds is considered one of the highest global security assets. In uncertain economic outlook, US Treasury bonds are sought after, bond yields fell.
US WTI crude oil on Friday closed down more than 10%. By the collapse in oil prices affect the US energy stocks lower across the board, Exxon Mobil fell 4.81%, down 4.93% Chevron, Schlumberger fell 7.63%, EOG energy fell 10.64%.
National economic adviser Kudlow: US stocks plunge is to be the bargain hunters
US President Trump's chief economic adviser Larry - Kudlow (Larry Kudlow) on Friday said the recent slump in US stocks, but investors should not overreact, there may be good investment opportunities, investment in the stock market, Americans You should bargain hunters.
Kudlow said, "long-term investors should seriously consider buying bargain stocks." He believes this is a wise investment strategy, because in spite of a sharp decline in the market recently and are concerned coronavirus could lead to a recession, the US economy remains "stable" .
Kudlow said US economic growth is expected to slow in the second quarter, the third quarter is also possible slowdown. If the huge global demand, the Fed should provide more dollars. US bond market may show market expectations for Fed policy. Or Congress will seek to introduce more stimulus measures.
The new confirmed cases of the virus crown over 100,000 Moody's said the increased risk of global recession
The current global confirmed cases of novel coronavirus infection has exceeded 100,000 cases, 3383 cases of death. Reuters statistics, the number of people worldwide infected with the new virus crown over 100,000. According to Xinhua News Agency reported, Johns Hopkins University released the latest real-time statistics show that as of August 6 EST (21:06 GMT May), the global crown new confirmed cases of pneumonia more than 100,000 cases, reached 100,113 cases.
The new global crown pneumonia epidemic worries intensified, Europe confirmed cases surge in Japan, South Korea, Iran's epidemic outbreak could have. Analysts believe that the market concerns about the global epidemic crisis will impact economic outlook led investors to panic selling.
The new crown virus outbreaks quickly spread around the world, to put pressure on risk assets, bonds and other safe-haven assets, gold be sought after. 10-year US Treasury yields fell to a record low, reflecting growing concern about the spread of the epidemic may be a heavy blow to global economic growth.
Moody's agency reported on Friday, said the spread of the new virus outbreaks of the crown, the global economy into recession risks increased. Moody's said: "For the United States, we currently expect 2020 real GDP growth will be 1.5 percent, lower than the previously expected 1.7%."
Seaport Global Securities general manager of bond trading director Tom di Galoma in Friday's report, wrote: "The new crown infection rate is increased exponentially, more US states declared a state of emergency."
Trump signed a $ 8.3 billion emergency spending bill called for the fight against SARS and then the Fed action
Trump on Friday signed a $ 8.3 billion emergency spending bill coronavirus. Trump also said: "I do not know whether to implement stimulus the Fed should cut interest rates and stimulus measures are expected to take the financial market will rebound..."
One of the most hawkish Fed policy-makers, the Kansas City Federal Reserve Chairman Xiaisite - George (Esther George), said quantify the impact on the stability and risk easing (QE) of the composition of the economy, while the asset purchase could lead to financial imbalances .
Some economists and strategists also believe that interest rates and other monetary policy tools to help the global economy could not withstand the shock effect caused by a coronavirus.
Nomura Securities analyst, said: "This idea ingrained in the financial markets, that is, when the severe global economic downturn, the central banks to rescue the economy through policy rate cut even if the coronavirus caused by the recession and other circumstances are different. the market also looking forward to the same policy action. "
Nomura Securities analyst noted that the current economic downturn is not beyond the fundamentals of asset prices and other financial factors but by the spread of a new virus triggered, and therefore "the most important and best emergency response measures, the most important health and safety policy. "
The market expected the Federal Reserve will cut interest rates again in mid-March
The new crown global virus outbreak spread, the prospects for economic growth is facing a serious threat, forcing some central banks including the Fed lowered its benchmark interest rate. On Tuesday, the Federal Reserve cut the federal funds target rate by 0.5 percentage points, the benchmark federal funds rate down to 1% -1.25%, which is the US central bank since the 2008 financial crisis in the first emergency cut interest rates. The market expected the Fed meeting March 17 to 18 on will cut interest rates again. According to CME FedWatch tool shows that in the next meeting in two weeks, the Fed cut interest rates again by 50 basis points the likelihood is about 80%.
Thursday night, the Dallas Fed chief Xiluo Bo - Kaplan (Rob Kaplan) said the popular new crown virus outbreak could last three to five months, but he was optimistic that the United States does not believe the outbreak occurred because the economic recession.
Kaplan said: "I still believe that this year the United States will be able to weather the storm." Kaplan is the Federal Open Market Committee (FOMC) voting member this year. FOMC monetary policy meeting will be held on March 17-18.
However, some people wonder whether the Fed's monetary policy makers have the ability to bring to curb the rapid spread of the deadly virus potential economic harm.
Deutsche Bank's global head of currency research George Saravelos said:. "We do not agree with the Fed's statement that 'there is still room for the central bank to tackle the crisis' argument regarding"
February non-farm employment data is strong, did not shake the market expected the Federal Reserve to cut interest rates
Economic data side, the US Labor Department reported that new US February non-farm payrolls recorded 27.3 million, higher than the previous value of 22.5 million (revised to 27.3 million) and the market expected 17.5 million. Together with the release of the US unemployment rate in February was 3.5 percent, before the expected values are 3.6%. Average hourly earnings steady year on year increase of 3%.
US companies remain strong in February, recruitment rate, which is a huge boost to the economy, in addition to the United States wage growth and stable growth, increase workers' working hours, a further decline in the unemployment rate last month, returned nearly 50-year low.
Although the February non-farm data were very strong, but did not shake the market expected the Fed to cut interest rates. After the payrolls data, the market is 100% expect the Fed to cut interest rates again by 50 basis points at a meeting on March 18; and will continue to cut interest rates by 25 basis points at the April meeting. Overall, the market that the Fed will cut interest rates three times in total during the year, a total of 75 basis points.
Stocks
JP Morgan, Morgan Stanley, UBS, Deutsche Bank and other Wall Street bank stocks generally lower.
British Petroleum, Chevron, Exxon Mobil and other oil stocks fell sharply.
Gold stocks higher, Barrick Gold, Kinross Gold, Harmony Gold and other net are rising.
Deutsche Bank will be Apple 's target price cut from $ 395 to $ 295. The bank will also AMD price target to $ 50 from $ 42.
Starbucks is expected to be virus epidemic in China, its second-quarter revenue decreased by $ 4-4.3 billion.
Tesla shares lower. Recent media reports said it overstated revenue by cutting warranty costs.
According to media reports, in terms of chip technology, Intel has fallen behind TSMC and Samsung , Intel executives have also recently publicly acknowledged this.
Other markets: international crude oil fell US plunged over 10%
Asian markets Friday, the Shanghai Composite Index fell 1.2 percent, the Shanghai and Shenzhen 300 index ended down 1.6%. Tokyo's Nikkei 225 index closed down 2.2%. South Korea's Kospi index ended down 2.2%.
European stock markets face European FTSEurofirst 300 index ended down 3.67 percent, Britain's FTSE 100 index ended down 3.5 percent, Germany's DAX index fell 3.3 percent, the French CAC index fell 4.0%, Spanish IBEX index fell 2.7%.
New York Mercantile Exchange, gold futures for April delivery rose $ 4.40, or 0.3 percent, to close at $ 1672.40 / ounce, the highest intraday rise to $ 1690.70 / oz.
This week the price of gold has risen to $ 105.70, an increase of 6.79 percent for the biggest weekly rise since 2011, the number of dollars and percentage gain.
Silver for May delivery fell 13 cents, or 0.7 percent, to close at $ 17.263 an ounce. The most active contract terms, silver rose 4.89% this week.
New York Mercantile Exchange, April delivery of West Texas Intermediate crude oil (WTI) futures prices fell close to $ 4.62, a drop of up to 10.1%, to close at $ 41.28 / barrel, the highest closing low since November 28, 2014.
London Intercontinental Exchange, May Brent crude futures fell $ 4.72, down 9.4%, to close at $ 45.7 / barrel, the lowest close since June 22, 2017.
WTI crude oil fell 7.8 percent this week, Brent crude oil fell 8.9%.