Market Review
Focus News
China Market
1. The China Securities Regulatory Commission strengthens the regulation of new trading behaviors such as high-frequency futures trading
Fang Xinghai, vice chairman of the China Securities Regulatory Commission, stated at the sixth general meeting of the China Futures Association that it is necessary to strengthen risk monitoring and analysis, pre-research, and pre-judgment, and to perform global tracking and analysis of important agricultural products, basic energy, and strategic minerals related varieties. It's important to enhance the supervision of new trading behaviors, such as high-frequency trading, to guide the standardized operation of capital in the futures market. Continuously improving the level of supervision, efforts are made to construct a favorable environment for the high-quality development of the futures industry.
2. Hangzhou implements new real estate policy "recognize houses but not loans"
Following the implementation of a "recognize houses but not loans" policy in the four first-tier cities of Beijing, Shanghai, Guangzhou, and Shenzhen, in order to better meet the demand for rigid and improved housing and support the demand for first-time home purchases, promoting the stable and healthy development of Hangzhou's real estate market, the "recognize houses but not loans" policy in Hangzhou has also been adjusted. This adjustment has been implemented since September 5, 2023, based on the time of online signing and filing of house contracts.
3. Beijing second-hand house owners change faces overnight
After the introduction of Beijing's "recognize houses but not loans" new policy, the market reported news of "multiple new housing projects' sales offices raising prices overnight, and customers queuing up to buy houses overnight." However, this fervor only lasted for two or three days before "changing faces" again, with some sales offices being empty and sand tables occasionally attracting visitors. At the same time, the mentality of many second-hand house owners also saw a rapid reversal, with some even making calls to agents to cancel agreements overnight.
4. China's external demand falls into contraction territory for the first time this year
Data published by S&P Global shows that China's Caixin Services PMI in August set a new low for the year, and the Caixin Manufacturing PMI for August recorded the fastest growth rate since February. Due to the slowdown in the growth rate of new business volumes, especially the slowdown in the volume of new orders from overseas, the operating activity growth rate of the Caixin Services industry in August fell to the lowest point of the year, marking the first decline this year.
Overseas Markets
1. US gasoline prices reach the highest seasonal level in over a decade
According to data from the American Automobile Association (AAA), the average selling price of regular gasoline at US gas stations reached $3.811 per gallon, not only the highest seasonal level in over a decade but also the second highest since records began in 1994. Gasoline prices represent a very significant expense, and their rampant rise not only means that inflation in the US is likely to rebound but also counteract the progress made by the Federal Reserve in containing inflation.
2. Hawkish Federal Reserve Governor supports standing pat this month
Christopher Waller, a firm hawkish governor of the Federal Reserve, stated that given recent data showing a continued slowdown in inflation, policymakers at the Federal Reserve can "proceed cautiously" on the issue of interest rate hikes, with no signs indicating the need for the Federal Reserve to take immediate action. He supports keeping the interest rate unchanged at the FOMC meeting in September. Over the past year, Waller's remarks have often represented the voice of the most aggressive interest rate hikers within the Federal Reserve.
3. The big three American automakers may start a major strike
The unions of the three largest US automakers, General Motors, Ford, and Stellantis, have voted to approve, if these companies cannot reach an agreement on new labor contracts by September 14, including demands for a 40% raise and the implementation of a four-day workweek. The United Automobile Workers (UAW), America's largest workers' association, may start a large-scale strike.
4. Saudi plans to extend production cut measures for another three months
According to Saudi media, to "stabilize oil prices," Saudi Arabia will extend its 1 million barrels per day production cut measures for another three months. Recently, Saudi Crown Prince and Energy Minister Abdulaziz bin Salman stated that for the stability of the oil market, Saudi Arabia would take all necessary actions. After consecutive production cuts, Saudi Arabia's daily crude oil production has remained at its lowest level in recent years, around 9 million barrels. At the same time, Russia also announced it would extend its 300,000 barrels per day of oil export cuts to December.
Today's Focus
Today, investors should pay attention to Australia's Q2 GDP, Eurozone retail sales, Canada's trade balance, US trade balance, and ISM Non-Manufacturing PMI data. Additionally, the Bank of Canada's interest rate decision and remarks from the President of the Boston Federal Reserve, Collins, among other risk events, also require investors' keen attention.
