May 23rd Financial Breakfast: The pattern of Ouqiang's weakness is still continuing

Huitong.com May 23rd - Tuesday (May 23rd) The political uncertainty in the United States has always been lingering in the hearts of investors. Although the United States and Saudi Arabia signed a large arms bill to boost the stock market, the dollar is politically uncertain. Under the pressure of sex, the economy in the euro zone is gradually improving. Germany and France may cooperate in depth in the future to boost the economy. This week, the market focus turned to the Federal Reserve minutes on May 25th, Beijing time.

Review on Monday:
1 China's stock market fell, most of the European and American stock markets rose;
2 The US dollar index continues the decline, and US political uncertainty further pressures the US dollar;
3 The Iraqi Ministry of Oil announced that it is ready to extend the OPEC production agreement;
4 The finance ministers of Germany and France discussed the need to strengthen the euro zone;
5 German Chancellor Angela Merkel verbally supports the euro;
6 Saudi Oil Minister: OPEC oil producing countries will not object to extending the production reduction agreement for 9 months;
7 Federal Reserve Party Committee Kaplan published a hawkish speech;
8 Explosion near Manchester Theatre, UK



[List of major global markets]

Stock Market <br>China's Shanghai Composite Index closed down 14.96 points on May 22, down 0.48% to 3,075.68 points; China's Shenzhen Composite Index closed down 71.32 points, down 0.72% to 9899.65 points; China's Shanghai and Shenzhen 300 Index closed higher 7.39 points, an increase of 0.22%, reported 3412.24 points.

Germany's DAX index closed down 18.69 points on May 22, down 0.15% to 12620.00 points. The UK's FTSE 100 index closed up 29.04 points, or 0.39%, to 7497.75 points. The French CAC40 index closed up 1.00 points, or 0.02%. Report 5325.40 points.

The S&P 500 index closed up 12.52 points on May 22, up 0.53% to 2381.73 points. The Nasdaq index closed up 49.41 points, or 0.82%, to 6083.70 points. The Dow Jones index closed up 90.06 points, or 0.43%. Reported at 20,804.84 points.

Futures <br> US June crude oil futures closed up 0.40 US dollars on the maturity date, an increase of 0.79%, to 50.73 US dollars / barrel. US July crude oil futures closed up 0.46 US dollars, or 0.9%, to 51.13 US dollars / barrel. Brent July crude oil futures closed up 0.26 US dollars, or 0.48%, to 53.87 US dollars / barrel.

COMEX June gold futures closed up 7.80 US dollars, or 0.6%, to 1261.40 US dollars / ounce, the highest since April 28; COMEX July silver futures closed up 39.5 cents, or 2.4%, to 17.191 US dollars / ounce.

In addition to the above crude oil and gold and silver, Huitong.com also counts more commodity prices for you: domestic futures main contract closed at night, hot coils closed at 0.03% on May 22, and rebar closed at night by 0.45%; asphalt night The market closed down 0.38%; Zheng coal closed at night; coking coal closed down 1.08% at night; coke closed down 1.07% at night; iron ore closed up 0.2% at night.

Foreign exchange
On May 22, the US dollar index fell to a low of more than six months, continuing the decline last week, as US political uncertainty persisted and the euro rose to suppress the dollar.

The US dollar index fell 0.14% to 97.005. The euro rose 0.25% against the dollar, at 1.1232, hitting a high of 1.1263 earlier. The pound has generally fallen, and the polls released earlier show that the support rate of British Prime Minister Teresa May’s party has declined before the next month’s election.

Onshore renminbi (CNY) closed at 6.8892 yuan at 23:30 Beijing time, down 22 points from the close of trading on May 19; the whole day's trading volume shrank by 369 million US dollars to 23.095 billion US dollars.

[International Finance News]

[After the US exited the TPP, the remaining 11 member states decided to continue to push forward the agreement.] Although US President Trump decided to withdraw the United States from the Trans-Pacific Partnership Agreement (TPP), the remaining 11 countries reached an agreement at a ministerial meeting in Hanoi, Vietnam. Adopted a statement aimed at facilitating the early entry into force of the TPP.

[The Iraqi Ministry of Oil announced that it is ready to extend the OPEC production agreement] Iraq said that the current oilfield operating costs are lower than those in North America, and even if the oil price drops to $10/barrel, it will continue to invest in the crude oil industry. Iraq has basically completed its previous goal of increasing crude oil production and has announced that it is ready to extend the OPEC production agreement.

[The German and French finance ministers discussed the need to strengthen the euro zone] German Finance Minister Schaeuble said that the need to strengthen the euro zone was discussed with the new French finance minister. Both sides believe that the two countries play a special leading role in strengthening the euro zone. The two sides agreed to set up a working group to strengthen the euro zone, and the working group will make recommendations in July.

[The new French finance minister said that the working group will propose a concrete idea for the development of the euro zone.] The French finance minister said that he would seek taxation assimilation and cooperation in economic policy. We are ready to accelerate the integration of European institutions. France will respect its commitment to reduce deficits, and maintaining public finance order is good for France.

[German Chancellor Merkel verbally supports the euro] Merkel said that the weak euro is the result of the ECB's monetary policy. On the issue of trade surplus, Germany can increase domestic investment, even if domestic demand has become the driving force for economic growth. We must ensure that other countries do not leave the EU.

[Fitch: US trade protectionism remains a key risk to the global economy] Fitch said that the US trade protectionist commitment during the campaign period has not yet emerged as a radical unilateral trade measure. If the United States adopts punitive import tariffs, it will cause huge losses to the GDP directly affecting the country.

[Saudi oil minister: OPEC oil-producing countries will not object to extending the production reduction agreement for 9 months] Saudi oil minister pointed out that any decision before OPEC this week will not be final, OPEC oil-producing countries will not oppose oil The production reduction agreement was extended by 9 months. The new version of the production reduction agreement will be similar to the previous agreement, and the changes are very small.

[Federal voter Kaplan issued a hawkish speech] The voting committee Kaplan reiterated that the Fed will raise interest rates twice in 2017. It will be appropriate to start shrinking at the end of 2017. Kaplan said that the United States is approaching full employment and the Fed is slow to achieve the 2% inflation target. The US inflation rate is low in March-April, but this does not mean that the inflation trend is weak.

[Explosion near the Manchester Theatre in the UK] There have been reports of two explosions near the Manchester Theatre in the UK, which was close to the end of the concert. The railway line outside Manchester Victoria Station is currently blocked. The video on the social platform Twitter shows that hundreds of listeners have escaped from the north of the theater. British police said that there was a "serious accident" at the Manchester Theatre in the United Kingdom.

[Domestic financial news]

Domestic macro [the treasury cash deposits are snapped up, strong supervision will not abandon liquidity] The central bank stressed in the first quarter of 2017 monetary policy implementation report that the next phase of monetary policy "highly attaches importance to prevention and control of financial risks, strengthen financial regulatory coordination The timing and rhythm of the introduction of organic regulatory policies, stabilize market expectations, grasp the de-leverage and maintain a stable balance of liquidity."

Domestic stock market [The listed company in the second quarter may have a big downturn] The Institute of Finance of the Chinese Academy of Social Sciences released the first-quarter listed company's prosperity index. Among them, the first-time prosperity index of listed companies in the first quarter fell from 98.29 in the previous quarter to 97.06, a large decline, indicating that the prosperity of listed companies in the second quarter is likely to fall.

[Xiong'an, the second new collective flameout, insurance stocks are difficult to stop the stock index decline] Although the blue chip stocks represented by the insurance sector once rose as momentum, but under the leadership of Xiong'an concept and sub-new stocks, Shanghai and Shenzhen stock markets The stock index still showed a slight decline on Monday, and the trading volume increased. Market participants also had different opinions on whether the stock index could stabilize at the current stop.

The domestic property market [the effect of the purchase restriction policy is obvious, the average housing price in Sanya has dropped by nearly 4,000 yuan per flat.] After the introduction of the purchase restriction policy, the Sanya real estate market has responded significantly. According to data released by the National Bureau of Statistics, the price of new commercial housing in Sanya fell by 1.2% in April, leading the country down.

[Shenzhen first home loan interest rate continues to tighten: CCB transferred to the benchmark, ABC 9.8 fold] Shenzhen real estate market loan policy continues to tighten, CCB Shenzhen Branch has raised the first home loan interest rate from the benchmark interest rate of 10% to the benchmark interest rate on the 22nd The Agricultural Bank of China Shenzhen Branch has increased from 10% to 9.8%.

Domestic industry [China and Mongolia's largest land port, the number of China-European train lines increased to 9] Customs released, the first list of Panjin to Belarus Central Europe class by the inspection and release. So far, the number of China-European trains on the Erlian Port has increased to nine, of which Zheng Ou Ban Lie, Yu Ou Ban Lie and Xiang Ou Ban Lie have achieved stable and normal operation.

[The “One Belt and One Road” foreign contracting project has grown rapidly, and transportation power construction has become an advantageous field.] Under the “One Belt, One Road” initiative, China’s foreign contracted projects have achieved rapid growth. In 2016, our company completed a turnover of US$76 billion in the national markets along the route. It increased by 9.7% year-on-year, and the transportation, power and construction sectors became the growth areas of business growth.