This week, the United States will release a series of economic data, and correspondingly, China will also announce several macroeconomic figures. Undoubtedly, the global financial markets will be significantly affected by these news.
Last night, the consumer survey data released by the United States had both positive and negative aspects, leading to gains and losses in the three major U.S. stock indices.
The Dow Jones Industrial Average finally halted its four-day consecutive decline, slightly rising by 0.12% last night. However, looking at the intraday trend, there was still a significant drop before the close. It once rose above 29,600 points at its highest, but fell back to 29,239 points by the end of the day, dropping nearly 400 points, with a net increase of only 36 points for the entire day.
But in comparison, it has far outperformed the Nasdaq and S&P 500 indices, which continued to decline last night, especially the Nasdaq index, which fell by 1.1%. This is also the fifth consecutive trading day of decline for both the Nasdaq and the S&P 500.
Looking at the cumulative decline so far this year, the Nasdaq leads by a significant margin, with a current cumulative decline of 33.36%, followed by the S&P 500, which has fallen by 24.7%. The Dow Jones Industrial Average is still the best among the three, with a current decline of 19.5%.
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Last night, the New York Fed released the results of a consumer survey, with the expected inflation rate for the next year at 5.4%. This expected value is 0.3 percentage points lower than the feedback from last month's survey, and it is also the lowest level since last September over the past year. This indicates that consumers believe inflation is gradually changing.
For the Federal Reserve, this may be an encouraging piece of news, suggesting that the past several interest rate hikes have begun to have a certain effect.
However, in the same survey data, there is a more worrying piece of information.Consumers' expectations for future household expenditures are continuously slowing down, reaching the lowest level this year. Moreover, they have dropped nearly two percentage points from 7.8% in August, marking the largest single-month decline in the history of this data.
This data more accurately reflects the current economic situation. The Federal Reserve's continuous interest rate hikes to control inflation have severely damaged the economic conditions of ordinary American residents. As a result, people have no choice but to keep reducing their future spending plans.
The lack of consumption will inevitably feedback to the economy, and it will soon be seen that corporate investments will contract, profits will decline, and then be reflected in the financial market, with stock prices falling further.
From this, it can be concluded that the temporary decline in U.S. inflation is at the expense of ordinary American families.
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The decline in technology giant stocks last night was not small, with semiconductor stocks falling particularly sharply, with TSMC falling by 6%, and ASE Technology falling by 9%.
In other technology stocks, Netflix fell by 7%, and Tesla's decline was close to 3%. Microsoft, Apple, and Amazon's declines all exceeded 1%.
The decline in Chinese concept stocks was also not small. The China Golden Dragon Index fell by 3.4% again. After a sharp decline the day before, Bilibili fell by 7% yesterday, Ctrip's decline exceeded 10%, and Alibaba, Baidu, and Pinduoduo's declines all exceeded 4%.
The financial market in the UK is also very chaotic now.
At the end of September, the UK government introduced a large-scale tax cut plan, leading to a market collapse.Subsequently, the Bank of England intervened to rescue the market by repurchasing UK government bonds, and the government also announced that the previous tax cut plan would be significantly adjusted.
However, yesterday the Bank of England made a statement indicating that it would not extend the duration of the market rescue.
In recent days, UK government bonds have continued to decline, and the British exchange rate has fallen for five consecutive trading days.
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