Futures on the three major indexes of US stocks fell before Thursday's trading. As of 20:10, the Dow Jones 30 was down 0.46%, the S & P 500 was down 0.51%, and the Nasdaq 100 was down 0.65%.
Source:Yingwei financial situation
【Hot news】
In 2020, the US fiscal deficit may break through the trillion US dollars mark, which will become a hidden worry for US economic growth. The Congressional Budget Office predicts that the US government's budget deficit could widen to $973 billion in fiscal year 2019 and more than $1,000bn in 2020. To fill the fiscal gap, the US Treasury has said it will accelerate bond issuance and is expected to issue $769 billion in bonds in the second half of this year, the highest since 2008. According to analysis, the Trump administration's massive tax cuts and a sharp increase in federal spending are the main reasons for the increase in the deficit.
China's fiscal spending accelerated in September, up 11.7% from a year earlier. Fiscal spending rose 11.7% in September from a year earlier, up from 3.3% in August, according to data released by the Ministry of Finance on Thursday. Spending on poverty alleviation surged 49.9 per cent year-on-year, while spending on pollution prevention and control and ecological protection increased by 20.1 per cent and 35.6 per cent respectively, according to the Ministry of Finance. China has listed poverty reduction and environmental protection as a priority list for this year. Meanwhile, china's fiscal revenue grew by just 2 per cent in September, the slowest pace so far this year, as the government stepped up tax cuts to cope with a growing trade war with the us and a cooling economy, according to the finance ministry.
Japan's exports fell in September for the first time since 2016, raising fears of a trade war. Exports to the United States fell 0.2% in September from a year earlier, dragged down by falling exports of construction and mining machinery, auto parts and medicines. Exports to china fell 1.7% from a year earlier, the first decline in seven months, dragged down by semiconductor production equipment. Falling exports to the United States and China have added to concerns about the impact of a trade war between China and the United States.
The yield on the two-year Treasury note rose to 2.907%, the highest since 2008.
Two-year Treasury yield trend Chart
The offshore yuan fell about 0.22% to 6.9452, a two-month low.
USD RMB (offshore) market chart
【Asia and EuropeStock market summary]
A shares closed down sharply, the exchange rate accelerated depreciation, aggravating the pessimistic atmosphere of the market. The Prev index refreshed its lowest level in nearly four years. As of the close, the Shanghai Composite Index fell 2.94% to 2486.42 points, the lowest level since November 21, 2014. The gem index fell 2.18% to 1205.03 points. Almost both indexes closed at intraday lows.
Hong Kong stocks rebounded in late trading, with the Hang Seng index rising 52 points to 25454.55, while the H-share index was dragged down 0.6 per cent by a sharp fall in A-shares.
In addition, Japanese stocks fell on Thursday, with the Nikkei 225 down 0.80%, mainly affected by declines in warehousing, chemicals, oil and plastics, and cars and parts.
【Important news on Chinese stocks]
$BABA (BABA) $：2 billion invested in alcohol e-commerce 1919 became its second largest shareholder, down 1.32% before trading.. On the afternoon of October 18, Yijiujiu Liquor platform Technology Co., Ltd. (hereinafter referred to as 1919), a liquor e-commerce company listed on the new third board, issued a notice saying that it recently received a strategic investment of 2 billion yuan from BABA Group, and BABA held about 29% of the shares, making it the second largest shareholder in 1919. It is understood that after the completion of the C round of financing, the estimated value of 1919 is about 7 billion yuan. 1919, founded in 2006, is currently the largest wine sales platform in China.
$JD.com (JD) $Logistics launches personal expressDelivery business, down 1.35% before trading.JD Logistics, Inc. CEO Wang Zhenhui announced at the 2018 Global Intelligent Logistics Summit that JD.com will officially enter the personal express business and expand to 30-50 core cities next year. The service will start operation in the Beijing, Shanghai and Guangzhou regions. Individual users can use the service from JD.com 's APP, official account, Mini Program and other entrances.
$Yulong Eco-Materials Limited-Ordinary Shares (YECO) $：Transform into a sapphireThe share price soared fivefold and rose 42.25% before trading.。Nasdaq-listed Xulong Renewable Resources Co., Ltd. soared more than fivefold on Wednesday to close up 570%. Earlier, the eco-friendly construction products and construction waste management company announced that it had completed the $50 million acquisition of the 61500-carat sapphire sculpture Millennium Sapphire, and planned to spin off its Chinese operations and move its headquarters from Pingdingshan to New York. And put all resources into this sapphire sculpture. On the same day, the stock's trading volume expanded to 26.9 million shares, while the average daily trading volume was only 43700 shares.
[important news from American companies]
$Facebook Inc (FB) $Shareholders proposed abolishing Zuckerberg's position as chairman, down 0.36% before trading.Several public funds that hold shares in Facebook Inc, including the New York pension fund, supported shareholders' proposal to remove CEO Mark Zuckerberg from Facebook Inc's position as chairman. The proposal will be voted on at the company's general meeting in May 2019. The announcement has no real impact on Zuckerberg and his position as CEO and chairman, as Zuckerberg owns most of Facebook Inc's super-voting shares, each of which is 10 times that of ordinary shareholders.
$Blackstone Group Inc (BX.US) $Earnings per share and funds under management exceeded expectations in the third quarter, down 0.39% before trading.Blackstone Group Inc earned 76 cents per share in the third quarter, with market estimates of 74 cents; assets under management of $456.7 billion and market estimates of $455.81 billion; and a net inflow of $24.1 billion in the third quarter.
Bank of New York Mellon (BK.US) $EPS and net interest margin exceeded expectations in the third quarter.Bank of New York Mellon's third-quarter EPS is $1.06, with market expectations of $1.04; net interest margin of 1.27% and market expectations of 1.26%.
Novartis (NVS.US) $Announced the acquisition of radiopharmaceuticals company Endocyte, up 1.23% before trading.Novartis AG raised its earnings forecast on Thursday and announced the acquisition of radiopharmaceuticals company Endocyte Inc. (ECYT), a deal that values Endocyte at $2.1 billion and is the latest move by Novartis AG to transform himself into a specialist pharmaceutical company. The Swiss pharmaceutical giant said its group's net sales rose to $12.78 billion in the third quarter from $12.41 billion a year earlier. At a fixed exchange rate, sales of innovative drugs increased by 9%.
$Endocyte, Inc. (ECYT.US) $Shares soared more than 50% before trading.Driven by the news that Swiss pharmaceutical giant Novartis AG will buy Endocyte for $2.1 billion. Novartis AG's US-listed shares rose 1.2 per cent before trading. The deal, announced early on Thursday and approved by Endocyte's board, values Endocyte at $24 a share, a 54 per cent premium to its closing price of $15.56 on Wednesday.
(editor / Song Wanguang)