Category: Flash News

On April 10th, the 9th Summit of the Community of Latin American and Caribbean States (Latin American and Caribbean States) was held in Tegucigalpa, the capital of Honduras, which holds the rotating presidency. Honduran President Castro pointed out in his opening speech that Latin America and the Caribbean, as a sovereign entity, is not a sacrifice for the development of global capitalism. Castro emphasized that the dream of Latin American and Caribbean countries to “unite together for the great nation” is more urgent than ever, because “the old neoliberal order imposed on our countries has collapsed, but the United States is changing its economic blueprint indiscriminately, no matter who is left behind.

On April 10th, the World Trade Organization held its first annual meeting of the Council for Trade in Goods in Geneva, Switzerland. The Chinese side has taken the initiative to set the agenda and expressed serious concerns about the US “reciprocal tariff” measures and their adverse effects, demanding that the US effectively abide by WTO rules and avoid negative impacts on the global economy and multilateral trading system. 46 members of the World Trade Organization, including the European Union, the United Kingdom, Canada, Japan, Switzerland, Norway, South Korea, Malaysia, Brazil, Peru, Kazakhstan, and Chad, spoke under this agenda item, expressing concern over the United States’ “reciprocal tariff” measures and calling on the United States to effectively comply with WTO rules. The Chinese side stated that the United States is the creator and main beneficiary of the multilateral trading system, and judging the overall benefits in international trade based on the balance of goods trade is extremely one-sided. The so-called ‘equivalent tariffs’ are like’ prescribing the wrong solution and taking the wrong medicine ‘, which not only does not help solve the problem of trade imbalance, but also backfires on the United States itself and seriously disrupts the international trade order. There are no winners in tariff and trade wars. China calls on all WTO members to learn from history, adhere to and uphold multilateral trade rules, and resolve differences through multilateral dialogue and cooperation. (CCTV News)

On April 10th, the minutes of the Federal Reserve meeting showed that the current inflation rate is still slightly high. The attendees stated that the uncertainty surrounding the economic outlook has increased, and when considering the magnitude and timing of further adjustments to the target range of the federal funds rate, the committee will carefully evaluate subsequent data, constantly changing prospects, and risk balance. The committee will strive to support full employment and restore the inflation rate to the target of 2%. When evaluating appropriate monetary policy positions, the committee will continue to monitor the impact of future information on the economic outlook. If there are risks that may hinder the achievement of the committee’s goals, they will be prepared to adjust their monetary policy stance as appropriate. The committee’s evaluation will take into account multiple factors including labor market conditions, inflation pressures and expectations, as well as financial and international developments.

On April 9th, Zhou Yi, CEO of Huatai Securities, stated that Huatai Securities firmly believes in the growth potential of China’s economy and the development prospects of China’s capital market. Short term fluctuations do not change long-term trends. The innovative spirit of Chinese technology enterprises, the strong resilience of China’s industrial supply chain, and the vast space of China’s domestic demand market are the biggest confidence and important support for the stable and positive development of the capital market. As a firm practitioner of long termism, Huatai Securities has always firmly supported the real economy, accompanied the vigorous development of strategic emerging industries, fully utilized the role of patient capital and long-term capital, and contributed to the high-quality development of China’s capital market. (Lin Jian, journalist from Caixin News Agency)

On April 9th, Ren Ping from the People’s Daily pointed out that the growth target of around 5% at this year’s National People’s Congress and Chinese People’s Political Consultative Conference has attracted attention. This is not only determination, but also confidence. In the first two months of this year, the development trend of China’s economy has shown a new positive trend. Winning the 14th Five Year Plan and embarking on a new journey, we are full of confidence and strength to empower the present and prepare for the future with “greater driving force”.

On April 9th, US Trade Representative Greer announced on April 8th local time that “equivalent tariffs” will take effect on the 9th. Greer stated that there is no specific timetable for negotiations between US President Trump and other countries regarding tariffs. Trump has made it clear that tariff exemptions will not be implemented in the near future. (CCTV News)

On April 9th, the shock wave of US tariff policies continued to sweep through global capital markets. UBS, Goldman Sachs, Morgan Stanley and other foreign institutions have successively released their latest views. On April 8th, Meng Lei, a China stock strategy analyst at UBS Securities, released a report on China’s stock strategy, stating that based on historical experience, the recent trend of the A-share market may have roughly priced out potential negative impacts. At present, the A-share market is at a relatively low valuation level, which provides protection against downside risks. Goldman Sachs’ Chief Strategist for China Stocks, Liu Jinjin, stated that US tariffs have an impact on the fair value of the Chinese stock market through multiple variables, and strategic allocation opportunities for A-shares are better than H-shares. Therefore, in terms of industry allocation, the focus should continue to be on the consumer sector. Laura Wang, Chief Equity Strategist at Morgan Stanley China, believes that market volatility will remain at a high level in the short term, and the A-share market is more resilient, which can be seen as an allocation option for hedging or risk diversification.

On April 9th, an article in the front page of China Securities pointed out that since April 7th, the “combination punch” of stabilizing the market has been quickly deployed and coordinated, from the intensive deployment of multiple departments such as the central bank, the State Administration of Financial Regulation, and the State owned Assets Supervision and Administration Commission, to the active role of the Central Huijin Company in playing a similar role as a “stabilization fund”, and then to the National Social Security Fund Council, state-owned capital operation companies, state-owned enterprise groups, insurance institutions, and listed companies implementing “real money and silver” increases and repurchases, sending a strong signal to the market to “stabilize the stock market”. With the support of more optimized market stabilization mechanisms, sufficient policy tool reserves, and stable to positive fundamentals, the effectiveness of policy “combination punches” will be better utilized, which will further enhance the confidence of the stock market to be “stable”. Stabilizing the stock market “is a clear deployment made by the Central Economic Work Conference and the National People’s Congress. The launch of this policy “combination punch” not only demonstrates the firm attitude of all parties to actively implement the central requirements, but also sends a strong signal that the stabilizing force will continue to strengthen, and will strive to promote the development of the capital market to form a good interaction driven by institutional reform, fundamental support, policy escort, and market investment value enhancement.

① 10:00 New Zealand to April 9 Fed rate decision ③ 14:15 Bank of Japan President Yoshio Ueda made a speech ④ 22:00 US February wholesale sales monthly rate ⑤ 22:30 US to April 4 week EIA crude oil inventory ⑥ 00:30 the next day Federal Reserve Barkin participated in dialogue activities ⑦ 01:00 the next day US to April 9 10-year treasury bond auction winning interest rate ⑧ 02:00 the next day Federal Reserve announced the minutes of the March monetary policy meeting

On April 9th, local time, US President Trump posted on his social media platform “Real Social” that he had a good conversation with the Speaker of the House and some more conservative members that day, and expressed support for large-scale spending cuts. Trump stated that the US government will implement spending cuts with a target of over $1 trillion. He also stated that he will work together with both houses of Congress to push for these large-scale spending cuts.