When the dollar strengthened and many central banks around the world raised interest rates to fight inflation, which led to recession panic, the market ushered in "Black Monday" and the tide of selling risky assets continued.
Stock indexes of major countries fell across the board, and US stocks collectively closed down for five consecutive trading days. Among the 11 sectors of the S&P 500 index, only consumer necessities stocks rose slightly, hitting a new low in 2022. The Dow fell 20% from its high point in early January, and fell into a bear market for the first time since the outbreak of the new crown epidemic. So far, the three major indexes have all fallen into a bear market. The pan-European Stoxx 600 index also hit its lowest level since November 2020, and the Russian stock market plunged 11% in intraday trading.
The yield of U.S. bonds jumped by double digits in all maturities, and the 10-year yield rose by 22 basis points to the highest since April 2010. The British debt frenzy caused the 10-year yield to soar by more than 40 basis points, reaching 4% for the first time since 2010. The dollar rose above 114, the highest level in 20 years, and the pound fell to the lowest level in history.
Oil prices and important commodity indexes fell to the lowest level in more than eight months, oil distribution fell below $85 for the first time since January, and natural gas in Europe fell. Gold fell for two consecutive days, hitting a two-and-a-half-year low, while Luntong fell to a two-month low, while Lunaluminum was the lowest in 18 months.
Michael Wilson, chief US strategist at Morgan Stanley, warned: "Historically, the strength of the US dollar has led to some kind of financial/economic crisis. If you need to pay attention to the destruction of the market at some point, then now is the time. "
[overnight U.S. stocks]
Among the large-scale Chinese stocks, Alibaba rose 0.14%, Baidu rose 0.61%, Netease rose 0.43% and Pinduoduo rose 1.02%.
Among the large US technology stocks, Apple rose 0.23%, Amazon rose 1.20%, Google A fell 0.58% and Netflix fell 1.03%.
[global index]
[global goods]
The main contract of WTI crude oil closed at $76.31 per barrel, down 3.09%; The main contract of Brent crude oil closed at $83.94 per barrel, down 2.57%; The main contract of crude oil in the previous period closed at 606.40 yuan per barrel overnight, down 3.05%.
Overnight, the Shanghai gold main contract closed down 0.56% to 382.70 yuan per gram; Shanghai Bank’s main contract closed down 2.18% to 4,315.00 yuan per kilogram.
[overnight news]
Pound crash triggered a political shock: Conservative MPs called for interest rate increase, and Labour Party pointed its finger at overturning tax cuts.
As the pound fell to a record low against the dollar, more and more Conservative MPs began to sit still. As the ruling party in Britain, some Conservative MPs believe that the Bank of England needs to intervene in the decline of its own currency, such as raising interest rates urgently, in order to ease the market’s excessive nervousness about the government’s economic plan. According to foreign media reports, the Bank of England is increasingly likely to raise interest rates urgently. A former minister who did not want to be named said, "When people start to think about whether there will be an emergency, it means that the political prospects (of the Conservative Party) are very bad."
The cause of natural gas leakage in Beixi 2 pipeline is unknown at present.
According to media reports, the Danish Maritime Administration observed natural gas leakage in the southeast of Bornholm Island in the Baltic Sea, Denmark, and has detected the leakage in the place where the Beixi 2 natural gas pipeline runs. The German government said that it was in contact with Danish authorities and would cooperate with local law enforcement agencies to find out what caused the leakage of pipeline natural gas.
Federal Reserve votes this year: interest rates will not fall next year, and restrictive interest rates should last longer.
Cleveland Fed President Meister said that she would like to see inflation cool for many months before it reaches its peak. Another FOMC voting member this year, Boston Fed President Collins, said that inflation may reach its peak, and raising interest rates will lead to an increase in unemployment, but not necessarily a recession. Bostic, president of Atlanta Federal Reserve, who has the right to vote in FOMC in 2024, also admitted that raising interest rates may cause some people to lose their jobs, but thought that the economy may slow down in a "relatively orderly way".
EU countries with serious internal differences plan to postpone the "Russian oil ceiling"
The EU plans to postpone the "capping" of Russian oil until a broader sanctions plan is agreed. The veto of Cyprus and Hungary forced the European Commission to postpone the plan.
[company news]
A fire broke out in Tesla’s German factory.
In the early morning of Monday (September 26th) local time, a fire broke out in the Tesla Super Factory in Gruenheid. In the early hours of the morning, the fire broke out at an outdoor recycling point in the northeast of the factory. About 800 cubic meters of cardboard, paper and sawdust caught fire, and then the fire department of Gruenheid received an alarm call from the factory at 03:33 local time. After several hours of fighting by 50 firefighters, the fire was not controlled until the morning, and no casualties occurred.
Netflix set up the first in-house game studio.
On Monday (September 26th), local time, streaming media giant Netflix announced that it would set up its first in-house video game studio, which will be located in Helsinki, Finland and led by Marko Lastikka. Amir Rahimi, vice president of Netflix Game Studio, said in a statement: "This is another step in our vision of building a world-class game studio, which will bring all kinds of enjoyable and deeply attractive original games to hundreds of millions of users around the world, without advertisements or in-app purchases."
FF board reorganization gets another $100 million in financing.
Faraday Future ("FFIE") announced on Monday that it had reached a final agreement with the company’s major shareholder FFTop(FF Global Partners) on financing and board restructuring. According to the agreement, FF received financing of up to 100 million US dollars from Daguan and American ATW Partners investment institutions. At the same time, FF Top, the major shareholder of FF, and FFIE formally reached a package of governance structure adjustment agreements including restructuring the board of directors. Sue Swenson, the current executive chairman, and Brian Krolicki, the former chairman (current director), will resign. This means that Jia Yueting and his partner team regain control of FF Company.
