Market review: the Shanghai and Shenzhen index opened high and went low, led by the transportation sector
The Shanghai and Shenzhen index continued its low consolidation today. As of the close, the Shanghai index fell 0.09% to 348419 and the Shenzhen index fell 1.09% to 1334696. In terms of sectors, transportation, coal and real estate sectors led the increase, while food and beverage, national defense and military industry and electronics sectors led the decline. The turnover of the two cities was 101017 billion yuan, breaking through trillion yuan again, an increase of 12.48% over the previous trading day and a contraction of 2.82% over the average of the previous five days. The net purchase of Shanghai Stock connect was 800 million yuan, the net sales of Shenzhen Stock connect was 1.531 billion yuan, and the net sales of northbound funds throughout the day was 731 million yuan.
Market focus:
On March 2 local time, Federal Reserve Chairman Powell attended the hearing of the Financial Services Committee of the house of Representatives on the semi annual monetary policy report. Powell said that the Fed’s policy shift is still on track at this stage. It will raise interest rates in March as originally planned to curb inflation and “support raising interest rates by 25 basis points in March”. In response to the current situation in Ukraine, Powell said that the short-term impact of the continued war and sanctions on the U.S. economy is still very uncertain. The Federal Reserve will continue to monitor economic data and adjust its monetary policy position as appropriate. Powell stressed that if US inflation remains high, he will be prepared to take more radical action at one or more meetings to “raise interest rates by 50 basis points”.
Strategy suggestion: focus on Nonferrous Metals
Today, the Shanghai and Shenzhen index continued to fluctuate and decline after opening high in the morning. Among them, the Shanghai index maintained a narrow shock in the morning, closed up slightly in the afternoon, fluctuated down again in the afternoon, and finally closed down slightly. After the opening of the Shenzhen index, it quickly went down and turned green, continued to go down in the afternoon, and the decline in the late trading further widened, and the two cities maintained a low adjustment as a whole. Individual stocks rose less and fell more, with a rise and fall ratio of 18852709. The north capital reappeared yesterday’s operation mode, with a net inflow of more than 1.5 billion yuan in the morning and a continuous outflow in the afternoon. The capital flow of Shanghai and Shenzhen Stock connect was differentiated again. Among them, Shanghai stock connect maintained a net inflow and Shenzhen Stock connect capital left the market. The transport sector opened and reproduced volume trading, and coal and real estate continued to rise. Lithium batteries and Baijiu concepts were among the top ones.
In terms of macro economy, Powell’s formulation of “supporting the 25 basis points interest rate hike in March” played a certain role in easing the sentiment of the US stock market, and the three major US stock indexes rose by more than 1.5% overnight. We believe that we should not be too optimistic about the pace of overseas liquidity recovery. From the data, one of the main reasons for the previous rise in US CPI came from the sharp rise in energy prices. The risk of Russia and Ukraine is still not eliminated, or even difficult to eliminate in the short term, which may further push up the prices of crude oil, natural gas and other energy, while the investment of strategic reserves is expected to be difficult to change the upward trend of oil prices, In particular, the European and American sanctions against Russia have spread to the field of transportation, or will once again impact the supply chain, thus pushing up the prices of food, metals and other products, increasing the upward pressure of inflation. The risk of continued US austerity has not been lifted. In terms of the research and judgment of the general trend of a shares, under the current complex global background, A-Shares have been out of the independent market for many days, reflecting a certain “safe haven” role. However, we remind again that the uncertainty risk in the market is still high. In the short term, it is suggested to focus on the nonferrous metals, petroleum and petrochemical sectors that are expected to benefit from the conflict between Russia and Ukraine.
Risk tip: the macro-economy is less than expected, the national epidemic is more than expected, and the geopolitical risk is intensified.
