New York stocks continued their rally. The Standard & Poor’s 500 index broke the 200-day moving average and raised expectations for further gains.
A key U.S. health official’s remarks that all 50 U.S. states could avoid the second epidemic of Corona 19 (COVID-19) this fall, as economic activity resumes, has relieved the market.
S&P exceeds 200-day moving average
The S&P 500 index, which is a major stock index, was up 44.36 points (1.48%) from the previous trading day on The New York Stock Exchange on 27 Th (local time). close at 3036.13.
The Dow Jones Industrial Average, a blue-chip (superior stock) club, gained 553.16 points, or 2.21 percent. Jump finished trading at 25,548.27.
It was the first time in more than two months since the beginning of March that the S&P 500 index reached 3000 and the Dow exceeded 25,000.
The & P 500 index, which broke the moving average line on the 200th day of the previous day, reached the 200-day mark. In general, the 200-day moving average is considered a signal of entering a long-term bullish market.
The tech-focused Nasdaq Composite Index gained 72.14 points, or 0.77 percent. rose to 9412.36.
As the blockade eased in earnest, video conferencing companies zoom and e-commerce company Amazon, which have been benefiting from the outgoing ban, have weakened.
Art Hogan, chief strategist at National Securities, said, “It’s a good thing for the market as a whole that the buy-to-let market, which has been concentrated in certain sectors, is moving elsewhere and rising stocks diversify.”
“The second epidemic of Corona 19 can happen, but it’s not inevitable,” Anthony Pouch, director of the National Institute of Allergy and Infectious Diseases (NIAID), the head of the White House Corona 19 Response Task Force, said in an interview with CNN.
He said, “If the people are well protected by health guidelines and the authorities are able to maintain inspection capacity, we can avoid the second trend.”
In the meantime, Pouch has warned of the second epidemic of Corona 19 this fall, saying, “We’ll see Corona 19 in the fall.”
Anthony Pouch, Director of the National Institutes of Allergy and Infectious Diseases (NIAID)
“Hong Kong does not have autonomy”… We take special position such as customs duties
However, the escalation of the conflict between the world’s two superpowers, which entered the new Cold War in the wake of the Corona 19 crisis, is cited as a barrier to further gains in the stock market.
Despite Western opposition, the United States has entered into a process of depriving China of its “special status”, including tariff benefits for Hong Kong, in the process of pushing for the enactment of the Hong Kong National Security Law. China is committed to a showdown against the United States.
U.S. Secretary of State Mike Pompeo said in a statement that “we have submitted a report to Congress stating that the special status of U.S. law in Hong Kong is no longer guaranteed.”
Pompeo said, “The fact so far is that no rational person today can say that Hong Kong maintains a high level of autonomy from China, and now it is clear that China is trying to make Hong Kong like itself.”
In particular, he described China’s attempts to enact Hong Kong security laws as “the latest in a series of moves that fundamentally undermine Hong Kong’s autonomy and freedom.”
In the meantime, the United States has granted Hong Kong a special position on tariffs, investment, and trade, under the principle that Hong Kong enjoys autonomy from China in accordance with the principle of a one-country two-state system.
According to the Hong Kong Human Rights Act, which was enacted in the wake of hong kong’s pro-democracy protests last year, the United States annually evaluates Hong Kong’s level of autonomy and considers whether to maintain its special status.
If hong kong’s autonomy is deemed to be threatened, the United States may deprive Hong Kong of its special status. In this case, Hong Kong, like mainland China, must bear punitive tariffs of up to 25% depending on the item when exporting to the United States. In addition, sanctions may be imposed on those responsible for suppressing Freedom of Hong Kong, including the suspension of visas and the freezing of assets in the United States.
U.S. President Donald Trump
White House “Trump offends China”
It is up to U.S. President Donald Trump to determine whether Hong Kong will lose all or part of its economic privileges, Reuters reported.
The day before, When Asked by reporters at the White House about China’s attempts to enact hong kong security laws, President Trump said, “We’re doing something, and I think we’ll hear very strong measures before the end of this week.”
On the same day, White House spokeswoman Kaylee McCain also said at a press briefing, “President Trump is displeased with China’s attempts to enact the Hong Kong Security Law,” and “He said he doesn’t know how Hong Kong will remain a financial hub if China takes control of Hong Kong.”
The Hong Kong Security Act, which China is pushing for the passage of the National People’s Congress (NPC) on 28 March, includes strengthening penalties for activities aimed at separating and overthrowing Hong Kong. It was the first time since hong kong was returned in 1997 that The Chinese People’s Army directly enacted hong kong legislation.
Chinese President Xi Jinping
Xi Jinping “Ready to Fight for Worst Case”
U.S.-China relations have deteriorated since President Trump took responsibility for the Corona 19 crisis against China and launched an offensive against China. In recent years, President Trump has blocked the supply of foreign semiconductors to Huawei, a Chinese telecommunications equipment company, and blocked u.S. investment in Chinese corporate stocks.
Congress is also sympathetic to the pressure on China. The ruling Republican-led Senate has already passed a bill restricting Chinese companies from listing on U.S. stocks. Democratic leaders in the House of Representatives also reportedly agreed to the bill.
If the US offensive against China continues, it is possible that China will take a stand. On the same day, China’s state-run global media Global Times warned that u.S. sanctions against Huawei could penalize U.S. companies, including Apple, Qualcomm, Cisco and Boeing.
The day before, Chinese President Xi Jinping said, “We will never tolerate foreign interference in the Hong Kong issue,” and urged the military to be prepared for the worst-case scenario.
Ursula von der Laien, Eu(EU) Executive Chairman
EU ‘Corona Recovery Fund’ Proposal… Stokes 0.2%↑
European stocks continued to rally. This is due to the news that the Executive Committee of the European Union (EU) has proposed a recovery fund to overcome the damage of Corona 19.
The pan-European stock index Stoxx Europe 600 is up 0.83 points, or 0.24 per cent. it finished trading at 349.75.
Germany’s DAX index is up 153.04 points (1.33%) from the previous day Up 11,657.69, France’s CAC40 gained 82.50 points (1.79%) It closed at 4688.74. Britain’s FTSE100 is up 76.49 points, or 1.26 per cent. rose to 6144.25.
On the same day, the EU Commission proposed to the European Parliament the creation of the Corona 19 Recovery Fund, which is worth 750 billion euros (about 1020 trillion won). The plan was fueled by Germany and France’s proposal to raise funds at the EU level last week.
This is a shift in the stance of Germany, which has opposed the EU’s shared debt. However, considerable disagreements are expected among member states in the future in the European Parliament to discuss how to fund and distribute recovery funds.
Eu Commission President Ursula Vonderreien called for solidarity and unity among member states to overcome the Corona19 crisis, saying that “our unique model of the past 70 years has never been more challenging in history.”
However, international oil prices plunged due to concerns about the U.S.-China crash.
On the New York Mercantile Exchange (NYMEX), WTI (West Texas Intermediate) July delivery was $1.54 per barrel (4.5%) from the previous trading day. It closed at $32.81.
Brent crude oil for July, the benchmark for international oil prices on the London ICE Futures Exchange, was trading at $2.15 (5.7%) as of 9:37 p.m. It is trading at $34.10 per barrel.
Gold prices, a typical safe asset, rose. As of 4:38 p.m., the June gold price on the New York Mercantile Exchange was $6.20 (0.4%) higher than the previous day. It rose to $1711.80.
The U.S. dollar was also bullish. At the same time, the Dollar Index (DXY) on the New York foreign exchange market rose 0.1% to 98.99 from the previous trading day. The dollar index is an index of the value of the dollar against six major currencies, including the euro and the yen.
New York correspondent Ppark140@gmail.com