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Marketmind: China crackdown | One America News Network

File photo: On February 28, 2020, in the Pudong Financial District of Shanghai, China, a man wearing a face mask can be seen inside the Shanghai Stock Exchange building, which was hit by a new coronavirus outbreak. REUTERS / Aly Song

July 26, 2021

Look at the day before from Cycat Chatterjee.

World equities recorded a four-day rise on Monday as regulators cracked down on some of the world’s second-largest economies, shaking the global market.

Educational stocks fell as Beijing’s crackdown on commercial tutors caused high-quality Chinese stocks to fall to their lowest levels in 10 weeks.

China’s real estate sector was also on the receiving side following media reports that the central bank was instructing Shanghai lenders to crack down on high-tech stocks and raise mortgage rates.

Adding an increasing number of COVID cases in Asia — Thailand posted a record number of COVID cases on the second day — and that is the beginning of a dark week for the market.

European stocks were scheduled to start trading at lower prices. US stock futures show a weak opening on Wall Street.

Nevertheless, the US stock market continues to benefit from China’s tightening measures. Nasdaq futures stabilize near historic highs, with rising bets to repeat dovish rhetoric when the Fed meets this week keeps the US Treasury’s 10-year yield near its lowest level since February. I did.

Meanwhile, more than one-third of S & P 500 companies will report their quarterly results this week, led by Facebook, Tesla, Apple and Alphabet. Just over one-fifth of the S & P 500 reports, with 88% of companies exceeding analysts’ expectations.

This was the main reason money managers poured over $ 900 billion into US funds in the first half of 2021, pushing the dollar up to a three-month high against the euro.

This week we also have enough economic data to keep investors busy, from second-quarter GDP measurements in the United States to GDP measurements in the euro area.

In a rare and bright place, Bitcoin expanded its profits from nearly $ 29,000 last week, pushing back more than $ 36,000 for the first time since June.

Major developments that need to provide more direction to the market on Monday:

– Data: German IFO

– Auction: US banknotes, Belgium hold auction

– US Revenues: Lockheed Martin, Hasbro, Logitec, Tesla, Packaging Corporation

– European Earnings: LVMH, Dior, Michelin, Philips,

– Ryanair fine-tunes year-round traffic forecasts with strong summer bookings. Fares are well below pre-pandemic levels.

Bloomberg reported on Sunday at RBC Bearing in advance talks to purchase a transmission unit for Swiss industry giant ABB.

Graphics: World COVID Cases – https://fingfx.thomsonreuters.com/gfx/mkt/lbvgnroqrpq/COVID.JPG

(Report by Saikat Chatterjee, edited by Dhara Ranasinghe)



Marketmind: China crackdown | One America News Network

Source link Marketmind: China crackdown | One America News Network

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