Daily

Low interest environment

2020-09-07

The cumulative number of infected people in novel coronavirus is close to 27.27 million, and the number of confirmed deaths has increased by more than 887,000. In the United States, about 40,600 people were diagnosed with new pneumonia yesterday.

The cumulative number of infected cases exceeded 6.43 million, and it continued to be the country with the largest number of infected cases in the world. Geopolitics is still tense. The Czech Republic, which was relatively close to China, has seen obvious changes in relations between the two countries.

Because Czech Senate President Vystrcil recently visited Taiwan, and Chinese Foreign Minister Wang Yi said that Czech political officials' visits to Taiwan have violated the "one China" principle,

All countries that challenge China's sovereignty and integrity are enemies of the 1.4 billion Chinese people and want the Czech Republic to pay the price. However, the five EU countries visited by Wang Yi, including Italy and Germany, all said they did not accept Wang Yi's threatening remarks.

Wang Yi's statement in Europe this time is obviously self-defeating, angering the EU and undermining the purpose of this trip. However, the problems in the border areas between China and India have worsened again, and the two sides accused each other of provoking each other first.

The Chinese side pointed out that it did not build facilities beyond national borders, while India pointed out that China constantly made military reforms, developed, operated and deployed defense in sensitive areas. The Indian side indicated that it was ready to respond with military power;

It is an indisputable fact that the situation in the South China Sea has aroused the attention of the United States. The United States has formed an alliance with Japan to monitor the situation, and a slight mistake may lead to a misfire. However, China will not be ignorant enough to implement the modern policy of "making friends abroad and attacking in close proximity".

Go far away to make friends with people and become a giant attacking neighboring countries?


Richard Jada, Vice Chairman of the Federal Reserve Board of the United States, talked about the interest rate policy other than inflation when attending the forum last week, and firmly stated that negative interest rates are not a good monetary policy, and will not raise interest rates just because the unemployment rate falls.

Implies that interest will stay at today's level for a long time. On the whole, the employment data released last week is ideal. The number of people claiming unemployment benefits for the first time in the United States last week was 881,000, the lowest since March.

However, the number of non-agricultural employment in the United States increased by 1.37 million, which was slightly worse than the expected 1.4 million, but the unemployment rate in the United States also fell to 8.4%, which was better than the expected 9.8%. While the U.S. stock market performed well at the beginning of last week,

Dow Jones index once returned to above 29,000, and finally closed at 28,133 points, down 210 points a week, while Nasdaq index performed best at the beginning of last week, breaking its peak for three consecutive trading days and breaking through the 12,000 mark for the first time.

But it fell before the weekend and closed at 11313 points, losing 400 points in a week. The US dollar index was booming in the stock market and rebounded at a low level of 91.8, reaching a maximum of 92.9. However, in the long-term low interest policy, it is difficult for the US dollar to return to strength.

Affected by the US dollar exchange rate, the price of gold fluctuated sharply last week, with the highest value reaching 1993 US dollars per ounce, the lowest value reaching 1916 US dollars per ounce, and finally closing at 1934 US dollars per ounce, with a weekly decline of 31 US dollars.


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