The global financial market has been quite nerve-wracking recently, with the performance of European and American stock markets being particularly eye-catching. In Europe, major stock indices are in the red, with the UK's FTSE 100 index falling more than 1%, undoubtedly sounding an alarm for investors. On the other side of the ocean, the US stock market seems to be on steroids—the three major indices opened high and continued to rise, especially technology stocks, which are truly in the limelight. The NASDAQ index's increase is simply skyrocketing!
However, amidst this bustling scene, Chinese concept stocks have become the neglected underdogs. The NASDAQ Golden Dragon China Index plummeted by 6.85% in a single day, with stocks of big names like Jinko Energy, JD.com, and Alibaba diving, causing many shareholders to feel uneasy. At the same time, the commodity market isn't faring much better: oil prices are sliding like they're on a slippery slide, with WTI and Brent, the two major international benchmark oil prices, falling by 4.2% and 4.31% respectively. Gold and silver are also sluggish, and the prices of base metals are generally declining, with the overall market's pessimistic sentiment growing thicker.
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On the other hand, there is some good news from the United States. The latest trade data shows that the international trade deficit in August was $70.4 billion, much better than expected, indicating an improvement in the US's external economic activities. Coupled with several Federal Reserve officials coming forward to support further interest rate cuts and emphasizing the maintenance of a healthy labor market, this suggests that future monetary policy may become more accommodative. What's more interesting is that Wall Street giant Goldman Sachs has raised its year-end target for the S&P 500 index to 6,300 points, also stating that fiscal policy has a greater impact on China's stock market.
Of course, in today's global economic integration, geopolitical factors cannot be ignored. The recent events in Lebanon have caused quite a stir: the Israeli military's attack on the local area has resulted in civilian casualties. This incident not only deepens the contradictions between the two countries but also has the potential to trigger a new round of tensions in the Middle East. Faced with such an external environment, major investment institutions have also begun to re-examine their strategies. For example, Goldman Sachs has expressed optimism about the prospects of the Chinese market, believing that with the implementation of a series of fiscal stimulus measures, China's economy will usher in a new growth cycle, driving the stock market to warm up. However, they also remind everyone that there is a "Fear of Missing Out" (FOMO) mentality in the market now, which is the fear of missing any opportunity to make money, leading to blind following and stock trading. This mentality will continue to affect the development of the capital market in the future.
In summary, although the global financial system faces many uncertainties and challenges in the short term, structural reforms and innovation are the keys to driving economic growth in the long run. For us ordinary investors, maintaining a calm and rational mindset is particularly important in such a changeable era. Only by conducting in-depth research on the fundamentals of various fields can we seize every opportunity and achieve the goal of wealth appreciation. After all, in this ever-changing capital market, "steady and solid" is always one of the wisest choices.