Commodity Markets
- Changes in Crude Oil and Precious Metals Prices:
Crude oil prices continued to fall, dropping by as much as 2% during trading, far from this month's high. Prices for New York gold futures and London copper declined, with the former falling from a record high and the latter setting historical highs for three consecutive days. Bitcoin approached the $72,000 mark during trading, hitting a six-week high, but later fell by nearly $3,000; Ethereum rose more than 10% during the session.
Chinese Market
- Chinese Concept Stocks and RMB Exchange Rate:
During the US trading session, the Chinese concept stock index fell by more than 2%, declining for two consecutive days and hitting its lowest point in over a week. Xpeng Motors surged by 26% at one point, closing up 6%; Li Auto fell 3.5% the day after its earnings report. The offshore RMB approached 7.25 during trading, hitting a near three-week low, before closing flat.
- A-Share Market:
On Wednesday, the three major indices of the A-share market diverged. The Shanghai Composite Index edged down 0.02% to 3,157.19 points; the Shenzhen Component Index fell 0.07% to 9,674.5 points; the ChiNext Index rose 0.09% to 1,863.14 points; and the STAR 50 Index rose 0.22% to 749.91 points. The total turnover of the Shanghai and Shenzhen markets reached 57.25 billion yuan. Sector-wise, the medical beauty and assisted reproduction sectors led the gains, while the civil explosives, electrode foil/copper-clad laminate, and viscose staple fiber sectors saw significant declines.
- Hong Kong Market:
The Hang Seng Index fell 0.28%, and the Hang Seng TECH Index fell 0.4%. Zhongtai International believes that the current valuation of Hong Kong stocks has significantly rebounded, with the Hang Seng Index risk premium and MSCI China Index risk premium falling below two standard deviations of the rolling two-year average, indicating strong technical overbought signals. Future policy catalysts are expected to decrease, and the market may shift from a unilateral rise to high-level fluctuations.
International Market
- US Stocks and Tech Companies:
US stocks performed well, with both the S&P 500 and Nasdaq indices reaching new closing highs. Google's parent company Alphabet hit a historical high, while Tesla surged over 6% at the close. Federal Reserve officials indicated that more months of inflation data are needed to confirm rate cuts. There are rumors that an Ethereum ETF may soon be listed, which drove Ethereum up by more than 20% at one point.
- Canadian Bonds and US Treasury Yields:
Latest data showed that Canada's CPI year-over-year growth fell to a three-year low, leading Canadian bonds. The benchmark 10-year US Treasury yield also fell by more than 3 basis points, as Federal Reserve Governor Waller described last week's US inflation report as "a reassuring signal."
- UK CPI Data:
The UK is set to release key CPI data today.
Regulations and Policies
- EU AI Regulation:
The EU Council has passed the world's first AI regulation law, with fines of up to 35 million euros or more. The law regulates based on "risk," with higher-risk AI systems facing stricter requirements and limitations. The rules mainly apply to commercial AI services and applications, with exemptions possible for military or research AI. Companies fined under the new law could face penalties of 35 million euros or up to 7% of their annual global revenue, whichever is higher.
Corporate Dynamics
- Disney's Pixar Animation Studios Layoffs:
Disney's Pixar Animation Studios, known for classics like "Toy Story," began layoffs on Tuesday affecting about 14% of its workforce, with approximately 175 employees impacted.
Futures Market
- COMEX Futures Contracts:
As of the close on May 21, COMEX June gold futures contracts reported at $2,425.2 per ounce, down 0.55%, with a trading volume of 225,980 contracts and an open interest of 207,262 contracts. On the same day, COMEX July silver futures contracts reported at $32.205 per ounce, down 0.68%, with a trading volume of 107,064 contracts and an open interest of 151,374 contracts.
