Weekly

June 27th

Today's amplitude range

Powell admitted that it was a mistake for the Federal Reserve not to take action to combat inflation earlier. Now the Bureau is trying to correct it, saying that the rate of interest rate increase is unconditionally limited. He also admitted that

Austerity may lead to slower growth, but recession is not inevitable. The U.S. Federal Reserve has shown its determination to fight inflation. I believe it will not relent in raising interest rates this year, but

There are complicated factors behind inflation, including the fact that the virus still threatens the normalization of the global supply chain, and the rise of protectionism, which also makes consumers bear the cost in return for higher prices.

Price level. Finally, it is the future development of the situation in Eastern Europe. The sooner the war between Russia and Ukraine stops, the sooner the supply can return to normal, which will help the price drop, especially the price of crude oil. interest rate

It reflects the cost of holding gold, but there is a hidden phenomenon of higher inflation behind the interest rate hike. The gold market is at the bottom of the test, and it is expected to pick up, but it can wait for low absorption. Today's suggested volatility is $1818 to $1840.

Dollars.

After a period of rectification guided by Chairman Ji Jinping's thought, the domestic economy is trying to rescue the market in the near future. In the upsurge of global central bank interest rate hike, China still keeps lending in the market.

The interest rate remains unchanged; Later, Premier Li Keqiang of the State Council of China said that near the peak period of electricity consumption in summer, power plants should be encouraged to release coal production capacity, and power cuts should be resolutely prevented to avoid affecting people's livelihood and

Economic activities. We also studied and extended the policy of exemption from new energy vehicle purchase tax, further released the automobile consumption potential, and the market looked forward to the normalization of domestic production. The Hang Seng Index rose by 644 in a week.

Or 3.1%, to close at 21,719 points, which is set to regain 22,000 points.

European stock markets plunged more than 4% last week, the second worst week since the Russian invasion of Ukraine. Although Europe's economic prospects are blocked; War in Eastern Europe and Global Supply

Tension has led to worsening inflation, and the market expects the risk of recession to increase. However, there were still speculators who took the opportunity to rebound in the market yesterday, and the three major European stock markets finally developed individually. In a week,

Germany's DAX index fell 0.06%; Paris CAC index rose by 2.74%; Britain's FTSE 100 index rose by 3.24%. US Federal Reserve Chairman Powell attended the US Senate last week for two consecutive nights.

Court witness meeting.

At the meeting, he admitted that the Federal Reserve had misjudged the risk of high inflation before, because they underestimated the rate of inflation deterioration, saying that at that time, they only expected the virus pandemic to disappear with the emergence of live vaccine.

Loss, the supply chain problem will be solved naturally, resulting in the bureau not taking faster action to combat inflation. As it turns out, the problems in the supply chain have not improved, he explained, because of the recent global

Events beyond its control, especially the continuous influence of the Ukrainian war and the Covid-19 pandemic, made the situation worse, and the bureau finally had to intensify it.

Means to control inflation, indicating that tightening policies may lead to slower growth, and recession is not inevitable. Powell reiterated that the Federal Reserve did not try to trigger a recession.

Powell admitted that it was a mistake for the Fed not to take action to combat inflation earlier, and said that the recent action was still aimed at stabilizing prices, and the Fed did not try to cause a decline.

The intention to retreat. Powell's remarks are like a shot in the arm for the risk market. After four weeks of decline, the three major indexes on Wall Street finally rebounded last week. To sum up, the Dow Jones index

Up by 5.34%; The S&P 500 index rose by 6.95%; The Nasdaq Composite Index rose 7.35%. Investors waited and saw the upcoming speech of US Federal Reserve Chairman Powell at the beginning of last week, the gold market.

Quietly, Powell said last Wednesday that the US economic outlook is becoming more difficult under inflation, but later Powell said that he would never rule out any rate hike, showing the Fed's solution.

Determination of inflation, he added last Thursday. Tightening policies may lead to slower growth, and economic recession is not inevitable. Powell's remarks cooled the risk aversion, and the price of gold last week

It closed at $1827.3, falling by $13.1 a week, with the highest at $1847.9 and the lowest at $1817.

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