Affected by the U.S. stock market surge, the FTSE A50 Index also rose linearly, up 0.4% as of press release.
The last big killer of the Federal Reserve
US stocks up more than 1%
On Monday, the novel coronavirus pneumonia announced that the first tier market company credit facility (PMCCF) was officially opened to the company in June 29th, marking the last of the 9 emergency loan schemes announced by the Federal Reserve since the outbreak of the new crown pneumonia epidemic.
Affected by the news, U.S. financial stocks rose collectively, with JPMorgan Chase up 0.39%, Goldman Sachs up 2.33%, Citigroup up 1.41%, Morgan Stanley up 0.43%, Bank of America up 1.02%, Wells Fargo up 1.38%, Berkshire Hathaway up 0.57%.
In addition, most of the large US technology stocks rose, with apple up 2.3%, Amazon down 0.46%, Nai soaring 0.87%, Google parent company up 2.54%, Facebook up 2.11% and Microsoft up 1.07%.
The Fed said the pricing of the pmccf would be determined by specific issuers, linked to market conditions, and subject to the minimum / maximum spread on comparable maturity U.S. Treasury bonds. Since the Federal Reserve launched the pmccf tool in March, corporate credit spreads have narrowed, allowing companies to borrow billions of dollars through new financing to take advantage of lower credit costs. This is partly due to the Federal Reserves intervention.
Previously, the Federal Reserve said that through the pmccf, the Federal Reserve will directly provide loans to investment grade enterprises in the primary market through special purpose vehicles (SPVs) and provide four-year bridge financing. The Fed said the move is to allow companies to have cash to pay their employees, and after approval by the Fed, borrowing companies can also delay the repayment of principal and interest in the first six months of the loan.
Market value increased by nearly 100 billion overnight
On Monday local time, the Federal Aviation Administration of the United States decided to allow Boeing 737max to start flight test as early as Monday (29th local time).
This means that Boeing aircraft grounded for more than a year is expected to return to service as early as the end of the year.
As soon as the news came out, Boeing rose sharply. As of the end of the day, Boeing rose 14.36%, and its market value soared by 13.7 billion US dollars, about 100 billion yuan, and a Air China rose.
The 737max certification test flight is expected to last three days and will include a series of flight operations and emergency procedures to assess Boeings improvements to meet FAA certification standards, according to a statement released on the FAA website by the Federal Aviation Administration.
The good news led to the general rise of American Airlines.
Southwest Airlines rose 9.61%.
In addition, delta rose 6.32% and United rose 7.24%.
Several states in the United States are considering gradually tightening restrictions
According to the real-time Shi epidemic data of Johns Hopkins University, as of 7:30 am on June 30, the number of confirmed cases in the world exceeded 10.25 million, including 2.58 million confirmed cases in the United States and more than 21000 new cases.
Ian Shepherdson, an economist at Pantheon macroeconomics, points out: we suspect that most people have been assuming that the economy as a whole will maintain a smooth rebound, which now seems unlikely. It will take at least a month or so before we can see that the number of cases and the number of inpatients may drop significantly under the new restrictions, thus allowing some areas with the current epidemic situation to reopen again. This means that the economy will have a very weak start in the third quarter.
California announced on Monday that bars, restaurants and other places would be closed again, and he hoped that Californians would continue to be vigilant, while New York governor Cuomo also mentioned the possibility of re imposing restrictions on public places such as restaurants.
Powell: recovery is happening gradually
Output and employment are still far below pre epidemic levels, and the path of economic development is very uncertain, which largely depends on our success in curbing the epidemic. The economy cannot fully recover unless people are convinced that it is safe to return to various activities. And the path to recovery will also depend on policy action at all levels of government to provide relief and support recovery when needed. A lot of companies are opening their doors, hiring is going up, spending is going up, Powell said. Employment growth, consumer spending rebounded strongly in May. We have entered an important new stage, and we are ahead of schedule. This rebound in economic activity is welcome, but it also presents new challenges, especially the need to control the spread of the epidemic.
In response to the epidemic, the Federal Reserve has implemented a variety of rescue programs and made direct loans where needed. In the hope of maintaining market liquidity, Powell added: in March, we reduced the policy rate to near zero, and we hope to keep the interest rate at that level until we are confident that we can get out of the current epidemic situation and are hopeful of achieving the maximum employment and inflation stability goals. The Federal Reserve will closely monitor developments and prepare appropriate adjustments to support our goals.
Three major European stock indexes rose
On the 29th, the three major European stock indexes also rose.
The average price index of 100 stocks of the financial times in London closed at 6225.77, up 66.47 points, or 1.08%, on the previous day; the CAC40 index of Paris, France, closed at 4945.46, 35.82 points, or 0.73%, on the previous day; and the DAX index of Frankfurt, Germany, rose 142.73 points, or 1.18%, to 12232.12.
International oil prices rose on the 29th, with WTI futures for August delivery on the New York Mercantile Exchange rose $1.21, or 3.1%, to $39.70 a barrel. Brent crude oil futures rose 69 cents, or 1.7%, to $41.71 a barrel on the Intercontinental Exchange in London.
In terms of international gold prices, August gold futures, the most actively traded gold futures market on the New York Mercantile Exchange, rose $0.9 on the 29th from the previous trading day to close at $1781.2 an ounce, up 0.05%.