Sinha News Agency, New York, June 28Roundup: US shares are tightly closed in June, future trends or adjustments
Xinhua news agency reporter Liu Yanan
The three major shares of the New York Stock Market ended on the last trading day of the first six months of this year, with slight increase on the 28th. In June, the three major share index rose more than 6%, with the beginning of this year, the 500-share index of Standard & Poor rose by about 17%, and the NASDAQ Composite index rose more than 20%. Analysts believe that US stocks will trade short-term after the G20 summit in Osaka, and the Fed's Monetary Policy and the earning season beginning July will also affect the stock market.
Driven by factors such as freeing of dividing signals by FED, US stocks showed a strong pace in June. On the 20th and 21st of the S & P 500 index, the record was high in intraday trading, and the other two stock indices also reached a high level.
The market was recently forecasts that the Fed lowers the interest rate of 50 basis points or 25 basis points in July's meeting. However, when Fed chairman Paul Powell gave a speech at 25 o'clock, he did not promise to reduce the rate. James Brende, President of St. Louis Federal Reserve Bank, once lowered 50 interest rates. Basepoint expresses dissatisfaction, and the Fed has weakened the market expectations by sharp reduction in interest rates. This week, the US stock market has experienced mixed ups and downs often.
The Fed will hold its next meeting from July 30 to July 31. Larry Benedict, founder of Market Research Institute "speculators" believes that once the Fed can reduce interest rates to satisfy the market, the rate cut will be longer.
Analysts generally believe that the G20 summit in Japan is an important factor that affects the short-term flow of the US.
Ritter Butch Associates chairman Jim Ritter Buchech said that the appetite of market risk can not be denied in the coming weeks, and the US stock market could pull back the benefits of this week in a big way.
Bank of America Merrill Lynch published a report on the date 28 that important events such as the G20 summit and macroeconomic data will be released in the coming weeks, that the Fed will cut interest rates in July or September, especially the G20 Summit, the American Institute Supply management data and increase in new employment information in June.
Many U.S. banks will announce income reports in mid-July in the second quarter of this year, and the US stock market will officially enter the earning season. Market expects that earnings per share of S & P 500 companies will fall more than 2% annually and will be reduced annually in the second quarter.
Sinha Finance analysts believe that the market influencing factors in the second half of the year mainly come from the following factors: First, the current US inventory cycle, production cycle, below the real estate cycle, underlying economic growth has weakened and the economy entered period of recession periodically. Secondly, the price of U.S. assets has continued to work at a very high level for many years. US stocks have left the big bull market for 10 years. Already in the higher share price, if only one interest rate is 25 basis points in July, such limited ease is difficult to accelerate to high volatility in the market.