Weekly

August 30 th
 
Today's volatility range:

Global quantitative easing has come to an end, and U.S. contraction will definitely start before the end of this year. However, the variant virus still threatens the pace of global economic recovery. With the Federal Reserve controlling liquidity to reduce inflation,

I am also afraid that raising interest rates will hit corporate profits, hurt the job market, hinder economic recovery and delay the pace of raising interest rates. Low interest rate is beneficial to gold, a non-interest-bearing investment tool. There are non-agricultural data this week.

It will definitely affect the timetable for the Fed to reduce its debt purchase. Today's proposed amplitude is between 1809 and 1823.
 
 
Global demand continued to recover. Hong Kong's exports in July were slightly better than expected, but it was estimated that due to the epidemic, imports only increased by 26%, which was lower than expected. During the period, there was a trade deficit of 35 billion yuan. The population data also shows that

Hong Kong's economy is on the surface, and the prosperous market in recent rows is due to the improvement of the atmosphere of catering and some retail industries caused by coupons. In fact, more industries are still trapped under Covid-19, and the policies of the Hong Kong Government also prove that the economy is still in a trough.

Last week, it was announced that the existing 35 types of government fees and charges would be extended or reduced, thus reducing the revenue of the Government Treasury by $2 billion. However, the Hong Kong stock market has completely deviated from Hong Kong's economic indicators, and the performance of mainland enterprises has an influence on the main changes.

Hang Seng Science and Technology Index rose 7.25% in the whole week, which inflated Hang Seng Index and closed at 2.25% in the whole week.

 
European data performed unevenly last week. On Friday, influenced by Federal Reserve Chairman Powell's remarks at the annual meeting of the global central bank, the performance of the week turned to rise, and the German DAX index rose by 0.28%; The CAC index in Paris, France rose by 0.84%;

The FTSE 100 Index rose 0.85%. The US House of Representatives decided to speed up the review of Biden's $1 trillion cross-party infrastructure draft. The news is good for the future, and the three major indexes of US stocks have reached new highs one by one, coupled with the attention of global investors on Friday

At the annual meeting of the global central bank, Powell, chairman of the Federal Reserve Board, released pigeons, saying that the road to interest rate cuts is still far away, and the US stock market rose sharply again. The three major Wall Street indexes rose across the board last week, and the Dow Jones index rose by 0.96%; The S&P 500 Index rose

1.56%； The Nasdaq index rose 2.26%.

An explosion occurred in Kabul, the capital of Afghanistan, and the risk aversion warmed up. The gold price failed to test the important barrier of $1,800 twice at the beginning of last week. Obviously, the explosive power of geopolitical risks is less than the power of quantitative easing, which is related to Powell's global situation

Speaking at the annual meeting of the central bank, he said that at the meeting of the Federal Open Market Committee in July, like most participants, he believed that if the overall economic development was in line with expectations, the pace of asset purchases should be slowed down this year.

Although significant progress has been made in employment, the variant virus has further spread; He and his members will continue to assess the data of virus introduction and the evolving risks, so there is still a long way to go to raise interest rates. The price of gold reversed on Friday

Reversing the plot, due to the ideal economic data in the United States, inflation is heating up, and the price of US 10-year government bonds has risen. The gold price was supported in the early stage and touched above $1,800. However, Powell delivered a speech at the annual meeting of the global central bank, which he proposed at the beginning

It is appropriate to start debt reduction this year, and it is said that if the policy is implemented at an untimely time, it will bring harm. The market saw Powell willing to reduce the purchase of bonds first, and the price of gold was immediately inserted to 1785 US dollars. After Powell added, the United States began to gradually shrink

The move of the bond purchase plan is not equal to the signal that the interest rate increase is coming. The market understands that Powell used to play the role of a pigeon as an eagle, and the gold price regained its upward trend, finally closing at $1817, rising by $25, and rising by $37 in a week.

For detailed analysis and operational suggestions, please CLICK the following link to join the group and check with the administrator
https://t.me/mingtakchat