Last week in the US, the market closed down sharply and end the week on a disappointing note. The major indices pushed higher on Monday and Tuesday, but from Wednesday to Friday it was all downhill. In the end, The S&P fell 5%, the Nasdaq fell 5.5%, and the Dow fell 4.6%. The market volatility mainly comes from the CPI. Equities recorded nearly half of their losses at the open, responding to the May CPI report, which did not show the desired relief in price pressures. Instead, the yr/yr CPI rate accelerated past its March high to a level not seen since early 1982 while the yr/yr core reading receded to 6.0% from 6.2% in April and 6.5% in March. In terms of industry sectors, the 11 major sectors of the S&P all fell sharply. The high-tech and financial sectors fell more than 6%; the raw materials sector fell 6%; the communications, consumer discretionary, and industrial sectors fell about 5%; the utilities sector fell 4%, and the medical sector fell 3%. Shorter-dated Treasuries faced immediate pressure in reaction to the inflation report while longer tenors joined the retreat after putting up some early resistance. The 2-yr yield jumped 22 bps to 3.04% while the 10-yr yield rose 11 bps to 3.16%, marking a fresh high for the year in the process.
In terms of A-shares, last week, the market continued its upward trend against the backdrop of the domestic policy of stabilizing growth and the continued promotion of the resumption of work and production in the industrial chain after the epidemic improved. The Shanghai Composite Index rose 2.8% for the week. The recovery of sentiment has brought about a significant rebound in market turnover, with the average daily turnover rising to over one trillion yuan. The net inflow of northbound funds was 36.8 billion yuan, and the weekly inflow reached a new high in the year. In terms of style, the growth style performed relatively well but differentiated. The ChiNext Index rose 4.0% for the week, and the relatively strong Sci-tech Innovation 50 Index rose 2.1% for the week. In terms of industry, the new energy and new energy vehicle industry chain has received extensive attention. Lithium batteries, new energy vehicles, and photovoltaics led the market last week. The pressure on the supply side of bulk commodities still exists. Combined with the demand side expectations brought about by the resumption of work and production, coal, Petroleum and petrochemical, chemical and other sectors also have strong performance.
In terms of Hong Kong stocks, last week, favorable policies continued to superimpose the improvement of economic data, and the overseas Chinese stock market continued to strengthen last week. The Hang Seng Technology Index soared 9.75%, driven by the marginal improvement in the regulatory environment. The MSCI China Index, Hang Seng China Enterprises Index and Hang Seng Index rose 6.3%, 4.7% and 3.4%, respectively. In terms of sectors, growth sectors led gains, with consumer discretionary, media and entertainment, and healthcare up 12.5%, 9.7%, and 8.2%, respectively, while transportation, real estate, and utilities lagged, down 3.0%, 2.7%, and 8.2%, respectively. 1.1%.
Major Stock Indice_________________________________________________________________________________________
Commodities (Energy, Metal,Agricultures)____________________________________________________________________
Major Currencies __________________________________________________________________________________________
Disclaimer
The content and opinions contained in this document are for reference only. Neither any information nor any opinion contained in this report constitutes a solicitation or an offer by Sinostar Asset Management Limited, to buy or sell any securities, futures, options or other financial instruments, or to provide any service or investment advice. The information on which this communication is based has been obtained from sources we believe to be reliable, but we do not guarantee its accuracy, completeness, timeliness or validity. All expressions of opinion are subject to change without notice. In no event will Sinostar Asset Management Limited be liable or have any responsibility for loss of any kind, whether direct, indirect, consequential or incidental, resulting from the act or omission of any third party occurring in reliance upon the contents of this report even if Sinostar Asset Management Limited is aware of such act or omission at the time that it occurs. Users of this document may not reproduce, distribute, disseminate, cite, reprint or provide some or all of the content to third parties without the written permission of the Sinostar Asset Management Limited.
Sinostar Asset Management Limited reserves all rights to this document.
Comentarios