Comments on key news of the week: many factors have successively impacted global risk appetite
Global risk appetite has been impacted by many factors: Biden nominated Powell for re-election as chairman of the Federal Reserve, and Powell is slightly hawkish compared with his opponent brenard; The minutes of recent meetings of European and American central banks have shown concern about high inflation; A new strain of covid-19 virus was found in South Africa, with significantly higher transmission rate and mortality.
Macro highlights: 1. Biden nominated Powell for re-election as chairman of the Federal Reserve; 2. 12 Chinese enterprises are listed in the “entity list” of the United States; 3. The meeting minutes released by the European and American central banks show concern about high inflation; 4. Opinions of the CPC Central Committee and the State Council on strengthening the work on aging in the new era; 5. A new variant covid-19 strain was found in South Africa.
Resumption of A-share market: a sharp rise in upstream resources
Index and style: A-share shock, dominated by upstream resources and medicine. The CSI 1000 and gem index rose the most, with weekly increases and decreases of 1.76% and 1.46% respectively. From the absolute performance of style, upstream resources and medicine, small cap, medium P / E ratio and blue chip stocks are dominant. In terms of style relative performance, the growth of small market value and science and innovation is superior to the market performance, and the performance of ultra-small market value is weak.
Industry performance: mixed, with non-ferrous metals, steel and food and beverage leading the increase.
Leading index: in the past 20 days, CSI 1000 dominated, while communications, non-ferrous metals, national defense and military industry led the rise.
Valuation tracking: A-share valuation rebounded, and most industry valuations rose.
Overseas market review: most global stock markets fell
Most of the world’s major stock indexes fell, while the gem index, the Vietnam stock exchange and the Shanghai Stock Exchange index were relatively dominant.
US stock market: the index fell in an all-round way, most industries fell, energy, essential consumption and financial performance ranked first, and value and market style dominated. The overall index valuation is down, and the overall industry valuation is down.
Hong Kong Stock Market: the index fell across the board, the industry fell across the board, and the performance of public utilities, telecommunications and industry ranked first. The valuation of Hong Kong stock index declined in an all-round way, and the industry valuation declined as a whole.
Performance of major categories of assets: RMB devaluation and decline in risk appetite at home and abroad
Global markets fell this week, with developed markets outperforming emerging markets. Commodity prices generally fell, with CRB industrial metals, LME copper, LME gold and Brent crude oil all falling. In terms of interest rate bonds, the short-term interest rate of US bonds rebounded and the long-term interest rate fell; In terms of credit bonds, China’s 3-year and 5-year AAA + medium note credit spreads have expanded; In terms of convertible bonds, the CSI convertible bond index rose. In terms of exchange rate, the US dollar index and the euro exchange rate rose, while the RMB exchange rate fell. In terms of volatility, the VIX index rebounded.
In terms of commodity relative performance, copper gold ratio rose, oil gold ratio and London gold / CRB industrial metals fell. In terms of the relative performance of the bond market, the interest rate spreads between China and the United States and between Germany and the United States have narrowed. In terms of the relative value of stocks and bonds, the revised risk premium under Wande’s full a caliber and the risk premium of S & P 500 have rebounded.
Leading assets: convertible bonds, gold and Chinese government bonds dominated the performance on the 20th.
Risk warning: Overseas volatility intensifies; Unexpected changes in macroeconomic policies; Regulatory policy exceeded expectations.
