news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

China Fund News Taylor

Global market crash, "Black Monday" continues to ferment!

Let’s take a look at the latest developments.

Some brokerage firms suspend night trading

Futu Holdings issued a statement saying, "Dear customers, due to an abnormality in the upstream system of the US stock night trading, today's night trading session has been suspended. The scope of this impact includes some brokerages that provide night trading services. We are contacting the upstream to repair it. We apologize for the inconvenience caused to you."

Tiger Brokers also announced that trading during the night trading session has been suspended. Tiger Brokers said that due to the abnormality of the upstream system of the night trading of US stocks, trading during the night trading session has been suspended today. It is understood that all brokerages that support the night trading session are affected, and we are contacting the exchange for communication. We are deeply sorry for the inconvenience caused to you.

In addition, trading platform Barchart stated on the social media platform "X" that brokerage firm Robinhood temporarily suspended its 24-hour trading service.

Big tech stocks fall pre-market

Before the U.S. stock market opened, Nvidia's stock price fell nearly 10%, and other trillion-dollar technology stocks also fell, including Apple, Amazon, Microsoft, Google's parent company Alphabet, and Facebook's parent company Meta Platforms. Tesla's stock price also fell more than 7% before the market opened. These seven stocks together account for about 43% of the weight of the Nasdaq 100 Index.

The Fed may cut interest rates in an emergency

Risk sentiment is rising rapidly, with traders pricing in a 60% chance of an emergency 25 basis point rate cut by the Federal Reserve within a week.

Analysts say the Fed may be forced to cut rates before its next meeting in September to prevent a recession-causing feedback loop between markets and the real economy. Right now, it’s all about markets. The Bank of Japan’s rate hike, followed by weaker-than-expected U.S. economic data, has triggered an unwinding of huge global imbalances that have built up to extreme levels. In times like these, the near-impossible becomes possible at lightning speed. While the economy today may not be any different than it was last week, the market’s shift to pricing in a recession is precisely what makes it more likely. The Fed may now be forced to cut rates this month to prevent falling asset prices from transmitting to the real economy and triggering a recession.

Analyst Marcus Ashworth said that as global stock markets plummeted, traders were talking about the possibility of an emergency rate cut by the Federal Reserve, but this was not only unlikely, but would be counterproductive. Fundamentally, the stock market decline was a liquidation of market positions, not a response to an economic shock. There was nothing wrong with the U.S. economy, so there was no reason for monetary authorities to intervene.

Thailand rescues the market

Thailand will expand a government equity fund in October to support the stock market, the finance minister said on Monday, adding that the market's fall was due to external factors.

Thailand's main stock index fell 3% on Monday to its lowest since early November 2020, hurt by a global market sell-off fueled by concerns about a U.S. recession.

The finance minister had previously said the government fund invested in stocks would increase by 100 billion baht to 150 billion baht.