Weekly

February 26 th

Today's volatility range:

After the gold price lost the psychological barrier of 1800, the yield of US 10-year treasury bonds rose, attracting conservative funds into the bond market. Although the current sluggish US labor market is difficult to push up inflation,

However, Biden's $1.9 trillion stimulus plan will soon be released. Besides distributing cash, it will raise the minimum wage in policy. With American consumption habits, it will inevitably push down the real interest rate.

Gold is still promising in the medium and long term. Today's suggested volatility is between 1760 and 1790 US dollars, with 1759 as the watershed, falling below the target of 1754.

The Financial Secretary, Chen Maobo, announced in his budget that he was going to submit a bill to increase the stamp duty rate on stocks from 0.1% to 0.13%. The market immediately dropped by about 3% yesterday, reflecting the negative factor of the increase in technology cost.

It is estimated that the Financial Secretary Chen Maobo's view on yesterday's stock market decline is naturally that the stock market rises and falls, which is common. Otherwise, he will not mention the capital gains tax. If the capital gains tax really works,

Not only Hong Kong stocks, but other investment markets are bound to shrink. But what is even more outrageous is that, when attending the radio broadcast of beacon smoke yesterday, Financial Secretary Chen Maobo revealed that during the preparation of the Budget, he had considered increasing salaries tax and profits tax.

However, the idea was postponed with compassion for the public. Thinking of raising taxes in a counter-cyclical way, it can be said that the Financial Secretary is really creative and is not affected by the objective environment, which is commendable!

EU leaders will hold a video conference yesterday to discuss border arrangements under the new pneumonia epidemic. As the COVID-19 epidemic is still severe, European Commission President Ursula von der Leyen said that EU people are getting tired of the epidemic.

However, we should not relax at this stage. EU leaders will maintain the restrictions on non-essential tourism, but will continue to study and introduce vaccination certificates.

In order to allow vaccinated people to have greater freedom of movement in EU countries, so as to save tourism. French President Mark Long admitted that the epidemic situation deteriorated due to the new variant virus.

EU residents' travel can be considered, and there must be a mechanism, and it should not be too loose. All three major European stock markets fell, and the German DAX index fell 0.68%; French CAC index fell 0.24%; Britain's FTSE 100 index fell 0.11%.

Yesterday, the United States announced that the GDP in the fourth quarter of last year increased by 4.1% quarter by quarter, slightly lower than the market expectation of 4.2%, but contracted by 3.5% for the whole year, the worst record in 75 years, reflecting the impact of the epidemic on the American economy.

Coupled with the increase in the yield of government bonds in 2 years and 10 years, which hit risky assets, the new york stock market immediately fell when it opened, and the three major indexes opened lower and closed lower. The Dow Jones index finally broke the cable on the seventh day and fell 3.52%;

The Standard & Poor's Index fell 1.73%; Nasdaq index fell 2.43%. The US dollar index weakened yesterday, once falling below the 90-point level. The weakness of the US dollar was beneficial to the upward trend of gold prices, but the price of US 10-year treasury bonds fell.

The coupon rate has climbed to 1.6%, hitting a new high in one year. The rising coupon rate has weakened the attractiveness of gold hedging. In addition, the US core durable goods order announced last month and the first application for unemployment benefits last week,

The number of people was better than expected, which further hit the performance of gold price. The highest price of gold was $1,804 per ounce, and the lowest price dropped to $1,765 per ounce when entering the US market, and finally closed at $1,770 per ounce, down $33.

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