“The United States’ Two Major Financial Issues: Debt Limit and Inflation”

The two major financial issues in the United States, debt limit and inflation, continue to haunt the market. In order to solve the problem of the debt ceiling, President Biden will shorten his trip to Asia, but the ruling and opposition parties believe that it will be resolved this week. The war of words between inflation and interest rate hikes continued. After the interest rate meeting at the beginning of the month, the market believed that the U.S. rate hike might stop.

Some members of the Federal Reserve Board recently came out to release the news, changing the hint of suspending interest rate hikes, emphasizing the need to look at the data to do things, and diluting the expectation that interest rates will peak. Each speak their own words.

From a strategic point of view, the Federal Reserve Board’s hawks are expected, because inflation is greatly affected by expectations. Even if the Fed has the conditions to stop raising interest rates, unless the economy has rushed off the cliff and the unemployment rate on the street has risen sharply, there is no reason to call the gong The current positive factor is that the inflation data has continued to fall for many months, which shows that the interest rate has a certain inhibitory effect, but whether there is a need for more drugs to control it, this needs further support from the data, if the director expects the economy to have a soft landing , it may not be hard to raise interest rates to accelerate the fight against inflation.
Aberdeen’s feet are soft, Hong Kong stocks are attacked on both sides

Western big investors are worried that a recession is imminent, US stocks are falling, and it is the turn of Hong Kong stocks to open. Due to the lower-than-expected data in the mainland, major banks have lowered their growth forecasts in the mainland.

The decline in the Hang Seng Index expanded in the afternoon, with a maximum of 440 points, reaching a daily low of 19,538 points. In the end, the market closed down 417 points to 19560 points. The China Enterprises Index closed at 6636 points, down 152 points; the technology index fell 2.2% to close at 3870 points, and opened up 16 points or 0.43% this morning to 3975 points. Hengan International (1044) rose 2.4% to HK$36.05, being the only blue-chip stock with a gain and the best performance.

Baidu (9888)’s smart technology brand “Xiaodu” announced that it will launch the first product under the new brand “Xiaodu Qinghe” Xiaodu Qinghe learning mobile phone, which will be fully pre-sold on JD.com (9618) next Monday. Xiaodu Qinghe learning mobile phone is aimed at young people, and has a mobile phone system customized for young people. Baidu once rose by nearly 2% to 126.7 yuan, a new high since April 20, and finally lost to the falling market. It closed at 123.8 yuan and fell 0.5%. .
Japanese stocks see 20-month high amid weak China-U.S.

The mainland released weak consumption data, and related stocks continued to fall. Naixue’s Tea (2150) fell 6% to 6.52 yuan; Jiumaojiu (9922) fell 4% to 14.4 yuan; Li Ning (2331) fell 3.5% to 48.55 yuan; Sun Art Retail (6808) rushed to 22 %, at 2.59 yuan. China’s special valuation concept stocks fell. China Mobile (941) fell 2% to 64.35 yuan; CPIC (2601) fell 4% to 23.95 yuan; Ping An Insurance (2318) fell 4.4% to 55.1 yuan; China Railway Construction (1186) fell 1.8% to close at 6.16 Yuan.

As the stock markets in China and the U.S. fell, the Nikkei index broke through the 30,000-point barrier yesterday, rising 250 points throughout the day, and closing at a near high of 30,093 points, rising for 5 days in a row and hitting a closing high in nearly 20 months. Japan’s first-quarter GDP data was released on Wednesday. It rose by 1.6% year-on-year, exceeding expectations. Domestic and foreign investment funds poured into the stock market. The market expects that the United States will continue to raise interest rates, resulting in the depreciation of the yen against the dollar in the foreign exchange market, which is good for the Japanese stock market.

Warren Buffett, the stock god, raised shares in Japanese trading companies earlier, indicating that he is more optimistic about the Japanese market than China and Taiwan, which have geopolitical risks, and shows that hot money is flowing to markets other than China and the United States. It is becoming more and more difficult for the mainland to maintain its economy and investment. It can only rely on its own efforts. Now that the data is unfavorable, I believe that the central government will work harder and plan quickly to survive.
Jin Riku