Chapter 209: The Confrontation Intensifies
Wednesday, March 20, 2024.
There were a lot of news overnight, and two of them caught Li Feng's attention.
First, the central bank's monetary policy committee underwent adjustments, with four members joining and four leaving, including ZJH Chairman Wu Qing.
It is particularly noteworthy that this is the first adjustment to the "Regulations of the Monetary Policy Committee of the People's Bank of China" since its revision. Furthermore, in the revised regulations announced on January 18, the second article specifically added the following: "The Monetary Policy Committee shall adhere to the leadership of the Communist Party of China in its work" and "Important matters shall be reported to the Party Central Committee and the State Council."
This made Li Feng think about building a financial powerhouse and the definition of "six strengths".
He felt a wind slowly blowing through the financial world, and it would intensify, cleansing away all the filth and eliminating all the evildoers...
Only in this way can we get back to the basics and build a financial world that truly belongs to us.
Of course, in other words, leeks can be harvested, but please do it slowly and gracefully. It is best to harvest them scientifically and in a planned manner. Before harvesting, please fertilize, weed, kill insects, and let them grow for a while before harvesting.
The second point is that the futures market of nonferrous metals on Palm is trending a bit.
London copper futures fell 1.43%, falling below $9,000 and closing at $8,972. London tin was even worse, plummeting 5.12% from $28,715 to $27,265, losing four days' worth of gains in just one day.
With the linkage between futures and stocks, the trend of non-ferrous metals today does not seem optimistic.
Sure enough, today's Shanghai Composite Index opened slightly at 3068.68 points, and then began to fluctuate slightly up and down hesitantly. During the session, stocks related to automobiles, film and television performed actively, oil shipping stocks strengthened among strong cyclical stocks, shipbuilding stocks were still weaving, and non-ferrous metal stocks fell sharply.
Among them, Tin Industry Co., Ltd. fell by more than 4%, Zijin Mining, Luoyang Molybdenum Co., Ltd., Zhuzhou Metallurgical Group Co., Ltd., and Baosteel Co., Ltd., which hit the daily limit yesterday, fell by more than 2%.
In addition, the coal sector, which generally rebounded yesterday, continued to pull back, with China Coal Energy falling more than 2%...
What a changing world, today I'm at someone else's house.
The non-ferrous metals sector has been reaping the benefits for a few days, and now it's its turn to be beaten.
Suddenly, Li Feng's cell phone vibrated with a buzzing sound.
He smiled wryly and opened WeChat. As expected, Xiao Bo sent him a message: "The latest news is that the Federal Reserve will hold a meeting tomorrow and announce its interest rate decision. I heard that the latest interest rate forecast shows that the probability of a rate cut in June is less than 50%!"
"So, the Federal Reserve may not cut interest rates in June, which is why non-ferrous metal stocks fell sharply today."
Li Feng shook his head and put down his phone.
Perhaps, for Xiao Bo, he is half-believing and half-doubting this big inflation cycle.
However, for me, the current round of inflation cycle shows no sign of stopping.
He glanced at the stock market, closed his eyes gently, and recalled what had happened recently to reconfirm the future trend of the market and anchor or modify his investment decisions.
There are three main reasons for this round of inflation cycle.
First, regarding the monetary factors between China and the United States, there are no signs of continued easing of the current monetary policies of China and the United States, and there has been no change at all.
Although my country has cut interest rates and reserve requirement ratios this year, according to signals from top leaders, future monetary policy will continue to be relaxed and financing levels will continue to decline.
Needless to say, the interest rate hike cycle in the United States has come to an end. In the future, there are only two options left: no interest rate cut or interest rate cut. Whether the interest rate cut is in March or June is no longer particularly important.
Because he will definitely cut interest rates in the future.
Second, the global supply chain is deglobalizing.
This trend has lasted for six years since the trade war began in 2018. What lies behind it is the fierce competition between China and the United States. A typical example is the "Huawei Meng Wanzhou" incident.
The purpose is for the United States to firmly grasp the high-profit part of global economic activities - that is, the two parts of design and research and development, and brand sales in the smile curve, especially the design and production of chips, these high-tech industries.
Subsequently, the trade war intensified, and undercurrents surged beneath the Sino-US dispute, including the "new crown incident" that began in 2020, the "Russian-Bird War" that began in 2022, and the "Israeli-Palestinian conflict" that began at the end of 2023.
Against this backdrop, Russia was sanctioned by the entire Western world, which directly led to the world's second largest oil producer and an important producer of bulk resources being blocked from the international market.
Originally, Europe could use natural gas directly from Russia, but now it has to be shipped from the United States. Originally, Russia's oil could be delivered directly internationally, but now a large part of it has to be washed on the ocean before being shipped back to Europe.
Under this confrontation, the United States and even Western Europe have erected trade barriers in an attempt to kick my country out of the global production chain. As a result, a large portion of products that could originally be shipped directly from my country to the United States have to be shipped to Southeast Asia and Mexico for recycling...
Moreover, many large companies are gradually moving their industrial chains out of my country...
At present, the United States’ goal has become to win over a group of younger brothers, rebuild a brand new, de-Sinicized industrial chain and ecological theory, and replicate the previous "Iron Curtain Confrontation".
my country's purpose seems to have gradually become clear. On the one hand, it continues to integrate into the global production chain and fight with the United States. On the other hand, it develops the Belt and Road Initiative, emulating the former "Marshall" plan, uniting a large number of third world countries and rebuilding a new, circular industrial chain.
In other words, we must be prepared to abandon the old world and build a new one.
Therefore, we need the "Six Powerful Ones" to fight against the people of the old world and to organize the people of the new world to carry out production.
Therefore, it is also necessary to give up appropriate profits and transfer some suitable industries to the people of the new world, so as to unite them, build a new world and fight against the old world.
Judging from all the current signs, this confrontation and cooperation is increasing rather than decreasing.
There is no sign of peace at the moment.
Third, regarding supply and demand, in the context of carbon neutrality and carbon peak, the supply of many minerals and ship production have been restricted, which has indirectly driven the operation of the industry cycle...
While I was thinking, I didn't realize it was already past 11 o'clock.
At this time, suddenly a huge amount of unknown funds poured into the market.
The Shanghai Composite Index rose from underwater and closed at 3075 points at noon.
Among the sectors, the oil shipping sector surged, the shipbuilding sector and coal turned positive, and many stocks in the non-ferrous metals sector suddenly rose by two or three points...
Is the adjustment over?
Old Chen looked at this scene with some surprise.
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