My Fintech Empire
Chapter 1530 [The Fed's big move to save the market has instead severely damaged global market
The market conditions these days have been crazy.
Today's roller-coaster-like market in the European stock market has made domestic investors discover that the so-called foreigners in the West who engage in value investing are not so calm when encountering such catastrophic market conditions. They are also so panicked and lose their helmets when they run. Abandon armor.
However, in terms of external markets, what everyone is most concerned about is how the Bei Magnesium stock market will go.
Although Ozhou Sansha is also an important sector in the global market, it certainly cannot be compared with the Beizhou Magnesium Stock Market.
In the past few days, the daily life of domestic stock investors is like this: get up at 7 o'clock in the morning, first read the foreign mask news, then watch the Asia-Pacific stock market plunge at 8 o'clock, watch the big A-share shock at 9 o'clock, and watch the market crash at 4 o'clock in the afternoon. The European stock market crashed, and the U.S. stock market crashed at 9:30 p.m.
In the first half of the night, the European stock market went on a roller coaster. In the second half of the night, the magnesium stock market opened sharply higher and fluctuated violently.
The magnesium stock market before the market was actually very violent. The three major stock index futures all rose by more than +5%, and the S\u0026P 500 index futures triggered a circuit breaker. This is the fourth circuit breaker in the magnesium stock market this week. The previous three times it fell to the circuit breaker.
In this atmosphere, magnesium stocks opened sharply higher, with the Dow rising +3.65%, the Nasdaq rising +5.67%, and the S\u0026P 500 rising +3.60%.
Soon, the gains of the three major magnesium stock indexes expanded to more than +6%, but this exciting state did not last long, and then began to turn downward. The Dow once fell by more than 1,200 points from its highest point in the session. The increase in the stock index also narrowed to within +1%, and led to a sharp decline in European stock markets.
The stock price originally rose as fast as a tiger in the first half of the night, but in the second half of the night, the decline in magnesium stocks caused it to collapse and close early. The FTSE MIB Index, which had soared by more than +17%, closed at +7.12%. , the Spanish IBEX35 index, which rose more than +12%, narrowed its growth to +4.46%.
At 3:30 pm local time on the 13th, when the three major magnesium stock indexes were already showing signs of diving in late trading, Zhiwei held a press conference on the South Lawn of Bai Palace to announce that Magnesium had officially entered the issue of face masks. Entering a state of emergency, the federal government will activate an economic fund reserve of US$50 billion for state medical institutions to respond to the black swan impact, and will also require various emergency command centers to respond to masks as soon as possible.
As soon as this news came out, the three major stock indexes of Beijing Magnesium surged violently in late trading. By the close of trading, the Dow soared nearly 2,000 points, an increase of +9.36%, the S\u0026P 500 index soared +9.29%, and the Nasdaq soared +9.35 %.
If Magnesium's big circuit breaker on the previous trading day was the market's "lower limit", then today's violent surge can be seen as the market's "high limit", which stunned the mainland investors who were paying attention to the trend of magnesium stocks.
Today's international crude oil market also rebounded, because Zhongwu mentioned in vain at the press conference that he would purchase a large amount of oil to increase the national energy reserves. As soon as he said this, the crude oil market rose sharply.
WTI crude oil futures closed up +0.7% at $31.73/barrel, and Brent crude oil futures closed up +1.9% at $33.85/barrel.
But this week, WIT crude oil futures plummeted by -23%, and Brent crude oil futures plummeted by -25%, both recording the largest weekly declines since December 2008.
The price of gold plummeted, with COMEX gold futures closing down -4.6% at $1,516.70 per ounce, the lowest level since December last year. This week, gold futures prices fell by -9.3%, the largest weekly decline since September 2011.
…
Weekend weekend, March 15th.
"In terms of news from the external market, under the impact of the black swan, the Federal Reserve launched a major rescue measure and announced zero interest rates." Tian Jiayi reported the latest news to Fang Hong: "The federal funds rate was directly lowered by 100 basis points to 0% to 0.25%. level, launched US$700 billion in quantitative easing, coordinated with banks such as Canada through the existing US dollar liquidity swap agreement, and lowered the deposit reserve ratio to zero on the 26th.”
Fang Hong was not surprised when he heard the news. As a time traveler, he knew that this was just the beginning, with zero interest rates, opening of the discount window, intraday credit, buffer assets, reserve requirements, support for international currency swaps, support for CMBS, Establish SPV\u0026ESF guarantee 30, continue to increase the frequency of currency swaps, and finally announce unlimited QE, which means unlimited money printing, etc.
"Magnesium stocks rose violently in late trading on Friday night. Our diving funds were forced to open up. Monday is the time to count the money again, waiting for the sixth meltdown in the history of primary magnesium stocks." Fang Hong said with a slight smile.
This statement surprised Tian Jiayi. She looked at Fang Hong and couldn't help but said: "With such a large rescue effort by the Federal Reserve, it won't lead to a sixth circuit breaker, right?"
Fang Hong said happily: "Before the Magnesium Fed released this big rescue plan, everyone may have been generally afraid, but now they must be extremely scared. This Magnesium Fed's big rescue plan will definitely save the effect of Midnight Terror. You see Bar."
After a moment of pause, Fang Hong added leisurely: "It's just like an old man has a cold and a fever. The wife takes out all her money and tells the old man to buy whatever she wants to eat. With this attitude, you think the old man Are you scared when you hear this? The old man wonders, is he already hopeless? The neighbor next door will be sent away if he catches a cold, and he will be very afraid of being infected."
Fang Hong said: "This old man is magnesium stocks, his wife is the magnesium Fed, and his neighbors are the global stock market. Tomorrow, our A-share market will open first, and it will be dangerous."
What he said was absolutely correct. At this moment, just after the magnesium Fed released the rescue move, global investors thought they were still dreaming. After repeated confirmation, they were so shocked that they could only squeeze out two words: WTF!
The magnesium Fed held an overtime meeting on Sunday and finally decided to cut interest rates by 100 basis points, with zero profit.
This is the second emergency interest rate cut by the magnesium Fed in the past half month or so. Zero interest rate is not enough, and even quantitative easing is restarted. The entire 700 billion US dollars will be used to calm down the shock first, and we should learn from 2008.
According to the normal procedure, this meeting should be held on Tuesday and Wednesday. They are not even willing to wait for three more days, which shows how urgent the situation is and how anxious the magnesium Fed is.
In addition to the magnesium Fed, many banks around the world have also urgently held interest rate meetings in advance and madly sprinkled money into the market.
The central banks can't wait even for a day, and their care for the capital market is really clear on paper, but all investors feel that the strength of this care is extremely scary when they see such a posture.
It doesn't matter what signal the Fed wants to send to the market with this operation. What's important is that investors interpret it as: it's just like going to the hospital for a medical examination. The doctor didn't tell the condition after the examination, but only said, "You can eat whatever you want when you go back, and eat well so that you can go on the road."
Damn it! This is the rhythm of a gangbang!
Isn't this just a meal before you leave? Who wouldn't panic when seeing this scene? Everyone is extremely scared!
The Fed is really panicking, but isn't it over if they know it in their hearts? Don't you know that the more critical the situation, the more confidence is needed? This big move not only failed to boost market confidence, but instead aggravated the panic index to boil over instantly, making everyone think that this is a meal before leaving.
…
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