European and American stock markets generally fell last week. The new round of economic stimulus measures in the United States was difficult to produce and investor sentiment was hit.
pandemic in Europe may further hit the economy. These factors are expected to continue to exert pressure on market trends this week. The crude oil market will continue to face downward pressure due to weak demand and the threat of rising supply.
The three major stock indexes of the New York stock market fell last week. As of the close of the 23rd, the Dow Jones Industrial Average closed at 28,335.57 points, a decrease of 0.95% last week; the S&P 500 stock index closed at 3465.39 points, a decrease of 0.53% last week; the Nasdaq Composite Index closed at 11548.28 points, The drop last week was 1.06%.
The analysis believes that the outlook for the new round of fiscal stimulus measures in the United States is unclear, which became one of the important factors affecting the trend of US stocks last week.
The US election is approaching, and the progress of negotiations on fiscal stimulus measures and the latest development of the pandemic are still the focus of market attention.
Financial reporting season highlights economic uncertainty
At present, it is very unlikely that the two parties in the United States will advance new stimulus measures before the election, and progress in vaccine research and development is still one of the key factors in determining economic prospects.
Looking ahead this week, more important US listed companies will disclose financial reports and profit guidance, such as technology companies such as Microsoft.
Statistics show that currently less than half of the listed companies that provide profit guidance are as many as in previous years, indicating a huge uncertainty in the economic outlook.
The market predicts that based on the good performance of Microsoft’s personal computer business and cloud computing business, its performance may be better than expected.
In terms of China’s concept stocks, the photovoltaic company JinkoSolar plunged 20% after hitting a record high on the 21st, and fell more than 10% on the 23rd.
Since the end of September, the news of JinkoSolar’s spin-off and listing has caused its share price to rise 180% within a month.
Some analysts pointed out that the popularity of the photovoltaic concept this year has also been reflected in A shares and US stocks, mainly due to the rapid recovery of photovoltaic market demand from the pandemic.
The pandemic continues to pressure European stocks
The three major European stock indexes fell across the board last week.
The London Stock Market “Financial Times” average price index of 100 stocks on the 23rd closed at 5,860.28 points, a decrease of 1.00% last week; France’s Paris stock market CAC40 index closed at 4,909.64 points, a decrease of 0.53% last week; Germany’s Frankfurt stock market DAX index It closed at 12645.75 points, a drop of 2.04% last week.
The analysis believes that the second wave of Coronavirus in Europe is currently raging, and the market continues to worry that if the pandemic in Europe does not improve or even continues to deteriorate, the new blockade measures may hit the already weak economy.
If the pandemic data deteriorates further in the future, the panic in the financial market may continue to heat up. In addition, the post-Brexit trade relationship between the UK and the EU will be extended to the 28th.
The risk of no-deal Brexit still makes the market worry that it will have a negative impact on the European economy and financial markets.
Oil demand worries hard to dissipate
International oil prices dropped significantly last week. As of the close of the 23rd, the price of light crude oil futures for December delivery on the New York Mercantile Exchange closed at $39.85 per barrel, a decrease of 2.52% last week; the price of London Brent crude oil futures for December delivery closed at 41.77 per barrel.
The analysis pointed out that investors’ concerns about weak demand for oil consumption have intensified, leading to a decline in oil prices, and that downward pressure on oil prices will continue in the future.
The new round of fiscal stimulus measures in the United States has not yet been reached, and the prospects for the US economic recovery are unpredictable.
At the same time, the demand for crude oil in Europe may reappear due to the rebound of the pandemic, and the market is still facing pressure from shrinking demand. From the supply side, the market has no clear factors to support oil prices. U.S. crude oil production is expected to rebound soon after the impact of Hurricane Delta is eliminated; meanwhile, Libyan crude oil production is expected to continue to rebound.
The US dollar fell 2.70% last week.
The most active December gold futures price on the New York Mercantile Exchange gold futures market closed at US$1905.2 per ounce on the 23rd, a decrease of 0.06% last week; the price of silver futures for December delivery closed at US$24.675 per ounce, an increase of last week.
1.11%; The platinum futures price for delivery in January 2021 closed at US$906.7 per ounce, an increase of 4.30% last week.
Analysts pointed out that the weakening of the U.S.
dollar and the decline in the stock market are the main factors supporting the recent rise in gold prices.
Based on the market’s expectations of the US’s new economic stimulus measures, market analysts predict that gold prices are likely to receive upward support.
Weaker dollar index
The US dollar index, which measures the US dollar against six major currencies, closed at 92.7741 at the end of the foreign exchange market on the 23rd, falling 0.97% last week.
As of the end of the New York market on the 23rd, 1 euro was exchanged for 1.1857 US dollars, 1 pound was exchanged for 1.3034 US dollars, 1 US dollar was exchanged for 104.73 yen, and 1 Australian dollar was exchanged for 0.7134 US dollars.