— This is the script of CNBC's news report for China's CCTV on July 4, 2018, Wednesday.
US stock just had 3 and half hours to trade overnight, Dow & Jones industry index declined 0.54% and S&P 500 shed nearly 0.5%, while a 0.86% decrease was seen in NASDAQ composite index. In terms of sectors, five of the S&P's 11 industry indicators showed a decline. Among them, the technology and financial sectors led the loss.
For the top five technology stocks, Facebook will face a broader investigation in the US. Because of its data leakage scandal of Cambridge Analytics
Causing Facebook’s stock price went down 2.32%. Google’s parent company Alphabet fell 2.26%; Netflix was off 1.92%; Apple drop 1.74%, while Amazon reduced 1.16%.
Among the bank stocks, Goldman Sachs fell 1.29%, Morgan Stanley drop1.47%, JP Morgan Chase closed down 1.4%, Bank of America was off 1.77%, and Citigroup descended 1.64%.
In fact, in the overnight session, you can say good news and bad news. Before the opening, on the European side, because the coalition government under the leadership of German Chancellor Merkel reached an agreement on immigration policy, causing the political risks shade in Europe and the European stocks rise, then the US stocks at the opening were affected by the optimism sentiment, coupled with economic data showing that US manufacturing data was better than expected, so the US stocks opened higher.
But obviously, there are still concerns about global trade frictions in the market. Earlier, the EU has issued a threat that if the US President Trump insists on levying tariff policies on EU automakers, then EU will impose the latest tariffs on imports of US$300 billion worth of traded goods. This may also cause many traders to lock in profits before the next one and half-holiday to seek safe haven.
[Louis Kuijs] "On several front, we see these broadening out of danger. For us is that if you look at any of those spats on isolation, you think its manageable, its just a small portion of total gobal trade. But we start to add all these up, if the threats do materialize, we'll start to have tariffs imposed on increasingly large share of global trade and that is getting worrisome."
US stocks mainly fell in the end of the afternoon session.
The US dollar index fell slightly. The price of gold rose by nearly 1% due to risk aversion, while the price of 10-year US debt rose and the yield fell. However, because the market is closed in advance, the overall trading volume overnight is less than usual, and we know that the lack of trading volume may trigger a more volatile trend in the session
Therefore, some analysts believe that we should not over-interpret the overnight stock market decline. We will keep an eye on the following trend of US stocks.