Due to Trump's proposal to impose a 50% tariff on the EU, US stocks opened significantly lower in the evening, with the Dow down 1.1%, the S&P 500 down 1.2%, and the Nasdaq down 1.5%.
The US Supreme Court ruled on Thursday that the Federal Reserve has a unique status among government agencies. This ruling pertains to the case of Trump dismissing the leaders of independent agencies. While it was determined that such officials can still be dismissed before a full review of the case, it emphasized that the Federal Reserve is different, as it is a uniquely structured quasi-private entity, alleviating market concerns about whether Trump could fire Federal Reserve Chairman Powell.
Federal Reserve Governor Quarsby expressed relief that the Supreme Court recognized the independence of the Federal Reserve, also noting that the threshold for rate cuts is relatively high in the near term, with potential reductions in borrowing costs in the next 10 to 16 months. In an interview, he stated that actions must wait for clear signals, and he still hopes that interest rates will be below current levels in 10 to 16 months. Previously, Trump threatened to impose a 50% tariff on EU imports and a 25% tariff on non-US manufactured iPhones. Quarsby believes that high tariffs will impact supply chains, and the uncertainty makes it difficult for relevant parties to act.
US Treasury Secretary Besant stated that trade negotiations between the US, India, and Asian countries have made significant progress, with most countries, except the EU, showing sincere negotiating attitudes.
After a pullback near 108,000, the Hang Seng quickly moved slightly upward and is currently stuck below 110,000. Previously, Yumi mentioned that 108,000 is a dividing line between bulls and bears. If the bulls can recover above 110,000 in the early morning, then the brief pullback due to news in the evening can be ignored, and it will accumulate energy for an upward move, targeting 113,000 - 115,000. Conversely, there may be a trend change.
Auntie should first focus on the key level of 2,600. If it stabilizes, then look at 2,680 - 2,720; if it consolidates and oscillates in the early morning, then pay attention to the volatility signals tomorrow morning.
Temporary pullbacks do not require excessive panic; continue to monitor changes in market indicators.
