Top News
Li Qiang chaired a symposium with experts and business leaders on the economic situation.
"15th Five-Year Plan for Expanding Consumption": Deepen the integration of "artificial intelligence and consumption," with the total retail sales of consumer goods reaching 60 trillion yuan by 2030.
Trump said a deal with Iran is still possible, and that U.S. allies in the Middle East should pay protection fees. Crude oil prices surged 10% intraday as the U.S. military reinstated the blockade against Iran; Trump threatened a "heavy blow" tonight or tomorrow and announced a 20% levy on cargo passing through the Strait.
Federal Reserve Governor Waller: If core inflation remains persistently high, the Fed may need to raise interest rates. The market now estimates a 45% probability of a rate hike in July, up from 35% previously; U.S. stocks, Treasuries, and gold fell.
South Korean regulators have comprehensively tightened restrictions on single-stock leveraged ETFs; the "F4" high-level meeting will discuss measures to curb volatility. South Korea's five major banks have already used up 85% of their annual household loan quotas, potentially putting the brakes on borrowing to speculate in the stock market. A panic sell-off triggered a wave of forced liquidations totaling 344.2 billion won, plunging the South Korean stock market into a margin call crisis.
Market Overview
Escalating U.S.-Iran geopolitical tensions have sparked concerns over energy shortages. Federal Reserve Governor Waller adopted a hawkish stance, and the market is awaiting U.S. CPI data and remarks from Federal Reserve Chair Wash. The Nasdaq fell 1.55%, with the sell-off in the South Korean stock market spilling over into U.S. equities; the U.S. semiconductor index plummeted 4.78%.
Waller's mention of potential rate hikes sent the yield on 2-year U.S. Treasuries soaring by 6 basis points, while the real yield on 10-year U.S. Treasuries rose to 2.34%, its highest level since April of last year.
Pressured by real interest rates and the U.S. dollar, gold plunged more than 3% at one point, breaking below the key support level of $4,000. Spot silver tumbled 3.57%, approaching its monthly low. Brent crude oil rose as much as 10% intraday, and after U.S. markets closed, Trump stated that the U.S. would "strike hard" against Iran tonight and tomorrow.
