Sudden change! New crown epidemic and Fed’s consecutive heavy news

Original title: Mutation! New crown epidemic and Fed’s consecutive heavy news
FX168 Financial News (North America) News Friday (June 26), the global market risk sentiment suddenly cooled, the panic indicator VIX rose more than 10%, the three major US stock indexes were sold, and the Dow fell more than 500 points. As the market risk aversion increased,
Dollar index
After rising sharply, spot gold recovered all the declines after a sharp decline and turned up, short-term out of the V-shaped reversal. On the news, the United States had at least 39,818 new cases on Thursday, the largest single-day increase since the outbreak, and Texas became a new hot spot for new coronaviruses. Harris County, Texas, is said to declare the highest state of emergency for new coronary pneumonia. In addition, according to ESPN, 16 NBA players tested positive for the new crown virus. In addition, a message from the Fed also hit Wall Street. The Fed’s annual stress test on major banks shows that, in connection with the new coronavirus epidemic, the capital level of some banks may be close to the minimum level. Therefore, the bank must suspend the stock repurchase program and limit the third quarter dividend payment to the current level.
Abbott said in a press release: “At present, it is clear that the increase in cases is largely caused by certain types of activities, including Texas gatherings in bars.”
US Secretary of Commerce Ross said that during the new crown epidemic, it is easy to have such events that interfere with the economic restart process. Texas must make every effort to stop the epidemic from spreading.
The U.S. stock market fell on Friday as people worried about the increased number of new CV infections in the United States and its impact on economic recovery.
(Dow’s 30-minute chart, source: FX168)
Tom Essaye, the founder of Sevens Report, said: “Coronavirus cases have proliferated and the time for reopening has been delayed, which will at least affect the company’s earnings. The resurgence of new coronavirus cases has caused people to worry that the rebound may be short-lived as more and more Many governments may force an economic shutdown.”
Shares of companies that will benefit from the economic reopening have fallen sharply. United Airlines (NASDAQ: UAL), American Airlines (NASDAQ: AAL) and Delta Air Lines (NYSE: DAL) all declined more than 4%. Shares of cruise operator Norwegian Cruise Line (NYSE: NCLH) fell 4%.
In a statement, Fed Vice Chairman Quarles said: “Although I expect banks to continue to carefully manage their capital actions and liquidity risks to support the real economy, there are significant uncertainties in the trajectory of economic recovery.”
The news caused some bank stocks to fall on Friday. Bank of America (NYSE: BAC) and JPMorgan Chase (NYSE: JPM) both fell more than 3%. Wells Fargo fell 4%, Goldman Sachs (NYSE: GS) fell 4.75%. Banking stocks have risen sharply before, rising more than 3% in regular trading on Thursday.
The Fed said on Thursday that the largest U.S. banks are healthy enough to withstand the crisis of the new crown virus. But at the same time, it warned that the long-term economic downturn may cause the banking industry to suffer hundreds of billions of dollars in losses due to non-performing loans, so it decided to limit bank dividends and repurchases.
Analysts believe that the above-mentioned new Federal Reserve regulations postponed the bank’s decision on future dividend distribution until the impact of the epidemic became clearer. This has brought more uncertainty to bank investors.
More importantly, the Fed requires the 34 largest banks to resubmit and update their capital plans later this year-usually only those banks that fail to do so.
(Chart of Ruixing Coffee, source: Google)
The company filed a statement with the US Securities and Exchange Commission that the request to withdraw the Nasdaq hearing will be suspended at the opening on June 29.
It is reported that the Nasdaq General Counsel’s Office has informed Ruixing Coffee that the company’s stock will be suspended when it opens on June 29.
Ruixing Company issued an announcement saying that it received two written notices from the listing qualification personnel of NASDAQ Securities Market Co., Ltd., explaining the reasons for its decision to delist the company’s securities from NASDAQ.
Sina Finance said that Ruixing Coffee announced the cancellation of the hearing, and people close to the company said that all directors will be fired