Original title: US actions suffered the worst week of financial crisis US Treasury Secretary urgently interviewed six major Wall Street giants
Introduction: On Monday, Mnuchin will continue to hold meetings with the US Financial Market Task Force, chaired by representatives of the Federal Reserve, the Securities and Exchange Commission and the Commodity Trading Commission. The announcement says these major regulators will discuss co-ordination efforts to ensure that the market functions properly.
Our reporter Xiang Xiufang reported in Guangzhou
One week before Christmas, the US stock market did not wait for a "Christmas offensive," but instead experienced the worst week of the financial crisis in 2008.
Among the three major stock indices, the Nasdaq index fell 8.4% to 6332 points last week, down from 22% from the recent high level and entered the "technical bear market". The industry average Dow Jones fell by 6.9% to 22,445 points, the biggest weekly drop since October 2008, only 3 percentage points from the technical bear market. The S & P 500 index fell 7% to 2416 points, the highest weekly decline since August 2011 and less than 2 percentage points from the bear market.
As the market step by step leads to the bear market, in addition to concerns about the slowdown in the US and global economic growth, concerns about the constant increase in Fed interest rates and the "decrease in the mass" (the reduction of balance sheets), as well as " "on both sides As a result," the government is closed "in the United States.
Former US President Minucin was busy in the past, and formerly the Trump defeat in FED President Powell's "Firefighting", he has to talk about executives of the six major Wall Street "in an attempt to sell the wind. Under these circumstances, investor confidence in the economic and financial system of the United States has stabilized.
The Stock Exchange Market flew, and the Minister of Finance shot "sustained"
US stocks continued to fall last week, investors' sense fluctuates, and the "panic index" VIX broke through 30.
To calm the market's feelings, US Treasury Secretary Mnochin said in a statement he called the heads of six major banks, including JP Morgan Chase, Bank of America, Goldman Sachs, Morgan Stanley, Wales Fargo and Citigroup, on Sunday to demand liquidity in the market. The question requires stronger confidence in the financial system. According to the announcement, these banks have confirmed that they have sufficient liquidity to provide loans to consumers and the commercial market. They have not experienced any settlement problems and margins and the market continues to function normally.
On Monday, Mnuchin will continue to hold meetings with the Financial Market Task Force in the United States, chaired by representatives of the Federal Reserve, the Securities and Exchange Commission and the Commodity Trading Commission. The announcement says these major regulators will discuss co-ordination efforts to ensure that the market functions properly.
Earlier, the Federal Reserve carried out the fourth increase in prices throughout the year, triggering Trump resentment. Some media reported that Trump discussed the dismissal of US Federal Reserve Chairman Powell. To calm the storm, Mnuchin issued two tweets to clarify the 22nd, saying he had recently discussed Fed's policy with Trump. Although the president decided to oppose the Fed's rising interest rates, he never proposed to dismiss Powell.
After entering the last trade week of 2018, US actions will be closed three hours before Christmas Eve on December 24 and will be closed all day at Christmas on Dec. 25. Whether Munchin's efforts to "stabilize" confidence can play a role, they still have to wait on the market to confirm after the holidays.
In the opinion of CICC Overseas Strategy, from the technical indicators, the current stock market in the United States clearly entered the transition area, and the dynamics of the S & P 500 index of 13.8 times was also the lowest since August 2013. A rather pessimistic expectation, but in the short-term market environment dominated by mood and position changes, the superposition of political events (such as the closure of the government) and the light of transactions for Christmas holidays, etc., still do not exclude the risk of fluctuations .
The government is closed, the market is worried about the economy
Due to the huge differences between the two parties in the law on borrowing for parliamentary elections, the US government is in the third stop this year on Saturday and nine government departments, including the Ministry of Homeland Security, the Ministry of Justice, the Ministry of Housing and Urban development. , accounting for a quarter of the entire government.
Mnuchin said in the statement that with the closure of the government, the Ministry of Finance will retain key functions in the financial system, the Internal Revenue Service and other core business units by key employees. As for the US economy, Mnuchin stressed: "We continue to see strong economic growth in the US economy and a strong activity from consumers and businesses."
Many market participants worry that closing the government will have a negative impact on the stock market. Frank D. Dunlopton Investment (BEN) Capital Director Stephen Dover pointed out that as an investor, it is very important to take a step back and consider its true potential impact. The closure of the government will lead to greater uncertainty on the market. Although there is little financial impact, it can have a psychological impact on the market. But the real question is, what will happen in the next two years in the case of a "divided government"? Can the government work? "We believe the most important thing is to pay attention to whether the government can effectively deal with any crisis in the future," said Stephen Dover.
Ma Wenhui, executive director of the Department of Financial Research and Strategy of Yunfeng, pointed to the 21st Century Business Herald last week that the results of the USSR's medium term were "split parliaments" and was harder to pass with a tax cut of 2.0 accounts. "I expect to expect 2019, US actions have no fundamental and political support."
According to Ma Wenhui's view, the current hallmark of the US economy is employment and consumption. The labor market is still very narrow, with many new jobs, and there are still many vacancies. If employment continues to be good, wage growth will also keep the current growth of around 3%, which is still useful for consumption. But Ma Wenhui recalled that both investment and external factors are at risk.
"In terms of private investment, the growth rate of real estate investment has dropped significantly, and from the US revenue quarter, the company's willingness to invest next year is also moderately adjusted. Regarding government spending, it is expected that the fiscal stimulus slowed down in 2019 and fiscal year 2020 could change. In order to stretch the factors, "Ma Wenhui noted that in terms of external demand, the economic growth of the eurozone and Japan is slowing down, and the performance of the emerging market economies Onomies are not good. The United States is waving the protection of the United States, and these conditions will become negative factors for the US economic growth next year. .