Us CPI continues to hit a 40 year high
The US CPI continued to hit a 40 year high. Data released by the U.S. Department of labor on April 12 showed that in March
The US CPI was 8.5% year-on-year, expected to be 8.4% and the previous value was 7.9%, reaching a new high in 40 years. Compared with 1.2% month on month, the previous value was 0.8%, the largest increase since September 2005. The month on month and year-on-year growth of us CPI in March were significantly larger than that in February, and the US inflation situation is still relatively severe.
Core CPI rose year-on-year and fell month on month. In March, the core CPI of the United States was 6.5% year-on-year, 6.4% of the previous value, 0.4% month on month, 0.7% of the previous value, and 0.3% month on month after quarter adjustment, the lowest since September last year.
That month, affected by the conflict between Russia and Ukraine and the interruption of the supply chain, energy, housing costs and food prices rose significantly, which was the main factor driving inflation. Specifically, the conflict between Russia and Ukraine led to a surge in international oil prices. In that month, the US energy price increased by 11% month on month and 32% year-on-year. Among them, gasoline prices increased by 18.3% month on month and 48% year-on-year. Food prices increased by 1% month on month and 8.8% year-on-year, the largest year-on-year increase since May 1981. Housing costs, which account for about one-third of CPI, rose 0.5% month on month and 5% year-on-year, the largest year-on-year increase since May 1991. It should be noted that the prices of used cars and trucks fell by – 3.8% month on month, the largest monthly decline since 1969 and the second consecutive month.
On the whole, the US inflation level continued to reach a new high. However, at the beginning of the inflation data release, the US dollar index and US bond yield fell, and US stocks and gold rose. It may be due to the decline of the month on month increase of core CPI and the decline of second-hand car and truck prices for two consecutive months, from which we can see some signs of inflation improvement. But on the whole, the inflation level is still very high, which may further strengthen the Fed’s expectation of raising interest rates by 50 BP in May. The expected probability of raising interest rates by 50 BP implied in interest rate futures is still more than 80%, and the three major stock indexes in the United States ended down.
CSRC, SASAC and all China Federation of industry and Commerce jointly issued “12 articles to support the development of listed companies”
The CSRC, SASAC and all China Federation of industry and Commerce put forward 12 measures on April 11 to support the development of listed companies and maintain the stability of the capital market. The three departments have made it clear that all kinds of market subjects are treated equally, and no additional conditions and invisible thresholds are set; Support listed real estate enterprises to actively transform to a new development model in accordance with laws and regulations; Exempt the listed company from the initial listing fee, annual fee and online voting service fee in 2022; Encourage and support social security, pension, trust, insurance and financial institutions to allocate more funds to equity assets; Encourage listed companies to buy back shares for equity incentive and employee stock ownership plans, and support qualified listed companies to buy back shares to stabilize the stock price; Major shareholders, directors, supervisors and senior managers should carefully formulate the reduction plan; Support listed companies to increase the proportion of cash dividends in profit distribution; Give active guidance and support to share repurchases and cash dividends of state-controlled listed companies.
Overall, the 12 measures proposed by the three departments to support the development of listed companies are the implementation of the spirit of the central economic work conference, the recent executive meeting of the State Council and the meeting of the financial committee of the State Council. They can promote the creation of a healthy market environment, support the development of listed companies and encourage the entry of long-term funds such as insurance into the market, which is conducive to the development of the equity market.
Li Keqiang: stabilize the macro-economic market and effectively ensure people’s livelihood
From April 11 to 12, Premier Li Keqiang stressed during his inspection in Nanchang and Shangrao, Jiangxi province that we should speed up the implementation of policies and measures set to help enterprises rescue, promote reform and opening up, effectively respond to unexpected changes in China’s external environment, stabilize employment and prices, stabilize the macro-economic market and effectively protect people’s livelihood. We should speed up the issuance and use of special bonds and improve the efficiency of project approval. If conditions are ripe, we should comprehensively carry out construction on the basis of ensuring quality, expand effective investment and promote employment, especially the employment of migrant workers. We should continue to pay close attention to agricultural materials, especially the shortage of special varieties, and ensure the supply and stable price. If the price of agricultural materials is still high for autumn grain sowing this year, the state will take new agricultural materials subsidy measures. The progress of tax rebate should be further accelerated to enable enterprises to get real gold and silver as soon as possible. We should ensure smooth transportation backbone network, distribution and China’s international logistics.
On the whole, the recent high-level officials have repeatedly mentioned that China’s external environment has changed beyond expectations. They have a strong determination to stabilize employment and prices and steady growth. Broad money + broad finance will protect prices for steady growth, and the policy environment is still good for the equity market.
Financing funds
On April 11, the balance of A-share financing was 1558868 billion yuan, a month on month decrease of 7.662 billion yuan; The balance of margin trading was 1645941 million yuan, a decrease of 10.558 billion yuan month on month. The balance of financing minus securities lending was 1471795 billion yuan, a month on month decrease of 4.765 billion yuan.
Land stock connect and Hong Kong stock connect
On April 12, the net purchase turnover of land stock connect on that day was 9.137 billion yuan, including 55.039 billion yuan of purchase turnover and 45.902 billion yuan of sales turnover, with a cumulative net purchase turnover of 1611489 billion yuan. Hong Kong stock connect had a net purchase transaction of HK $1.703 billion on the same day, including a purchase transaction of HK $14.827 billion and a sale transaction of HK $13.124 billion, with a cumulative net purchase transaction of HK $2283908 billion.
Money market
On April 12, Bank Of Shanghai Co.Ltd(601229) inter-bank offered rate Shibor overnight interest rate was 1.7720%, down 8.40bp, Shibor week was 2.0400%, up 9.30bp. The weighted interest rate of pledged repo of deposit institutions was 1.7511% overnight, down 8.84bp and 1.9728% a week, up 6.53bp. The 10-year maturity yield of China national debt was 2.7705%, up 0.25bp.
Overseas stock market
On April 12, the Dow Jones Industrial Average closed at 3422036 points, down 0.26%; The S & P 500 index closed at 439745 points, down 0.34%; The NASDAQ index closed at 1337157 points, down 0.30%. European stock markets, French CAC index closed at 653741 points, down 0.28%; Germany’s DAX index closed at 1412495 points, down 0.48%; The FTSE 100 index closed at 757666, down 0.55%. In the Asia Pacific market, the Nikkei index closed at 2633498 points, down 1.81%; The Hang Seng Index closed at 2131913, up 0.52%.
Foreign exchange rate
On April 12, the dollar index rose 0.33% to 1003149. The euro fell 0.50% against the dollar to 1.0829. The dollar rose 0.00% against the yen to 1253935. The pound fell 0.21% against the dollar to 1.3001. The spot exchange rate of RMB against the US dollar closed at 6.3711, depreciating by 0.02%. The spot exchange rate of offshore RMB against the US dollar closed at 6.3767, up 0.18%. The central parity rate of RMB against the US dollar closed at 6.3795, depreciating by 0.24%.
Gold, crude oil
On April 12, Comex gold futures rose 0.65% to close at US $197030/oz. WTI crude oil futures rose 3.74% to close at USD 94.86/barrel. Brent crude oil futures rose 5.62% to close at US $104.93/barrel. COMEX copper futures rose 1.77% to close at US $4.7060/lb. LME copper three-month futures rose 1.43% to close at US $10303 / ton.
