The hottest Wall Street crisis broke out, and the

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Sudden wall street crisis, unpredictable oil price trend

[market review]

NYMEX crude oil index trend chart

nymex crude oil index trend chart. (chart source: Wenhua Finance)

the international crude oil price in September can be described as ups and downs. At the beginning of the month, the US dollar price continued to rise, depressing the crude oil price. The NYMEX crude oil index was as low as US $90 at one time, hitting a seven month low. Then the Wall Street crisis broke out, curbing the downward trend of crude oil prices and even the entire commodity market. Crude oil prices rose and returned to above $100, but fell again after a short shock in the range of $100 - $110, and finally closed at $100.85 this month, the lowest close since April. Affected by the macro-economy, the supply and demand in September basically had little impact on the crude oil price. Accidental factors such as weather and regional political environment failed to become the subject of market speculation. The development trend of the late Wall Street crisis is still the focus of the market

Shanghai oil index trend chart

Shanghai oil index trend chart. (chart source: Wenhua Finance)

Shanghai oil follows the international crude oil price in the trend. However, although the domestic oil price is still inversely linked to the international oil price, Shanghai oil failed to get out of strength in the recovery process in September as in the first half of the year, but it is difficult to design a relatively weaker price than the original oil price. On the one hand, the reform of the oil pricing mechanism expected by the post Olympic market has not been launched yet, on the other hand, the spot market transactions are too light, The popularity of market participation is obviously insufficient, and the keynote of Shanghai oil to follow the trend of crude oil prices in the later period will not change, but the enthusiasm of market participation needs to be raised to improve its work efficiency

[Wall Street crisis]

at the end of August, the sale of assets from Lehman Brothers to make up for losses has sent a warning signal to Wall Street. However, wall street did not show any interest in acquiring Lehman Brothers' assets, and the government refused to provide financing for Lehman Brothers' sale of assets, which finally pushed it to a dead end. On September 15, Lehman Brothers Holdings Company, in accordance with Chapter 11 of the United States Bankruptcy Law, Apply for bankruptcy protection to the U.S. bankruptcy court for the Southern District of New York, and soon usher in bankruptcy liquidation. The bankruptcy of Lehman Brothers intensified the pressure on many banks and other financial institutions to sell their commercial real estate debts. These institutions tried to sell their Lehman assets before the liquidation of Lehman Brothers to protect themselves. While Lehman Brothers was facing bankruptcy, Merrill Lynch and Bank of America were close to reaching a sale agreement. So far, the credit crisis has shaken the core of the U.S. financial system, which seems to be greatly unexpected for U.S. regulators. The AIG debt crisis pushed the Wall Street crisis to a climax, and it was difficult for the U.S. government to sit back and start the aid plan for Wall Street

the U.S. government assistance plan mainly includes the following aspects: first, capital injection. When AIG was in trouble, the Ministry of Finance injected 85billion yuan of aid funds into it, and thus held 79.9% of AIG's equity. Second, legislative assistance. The U.S. government submitted a bill to Congress, which includes giving the Treasury the right to purchase assets of up to $700billion. At present, 250billion has been approved. Third, actively seek overseas assistance. The United States has asked for help from the "G7" and hopes that central banks can provide financial support. Fourth, the government public relations hopes that the world's major financial institutions will receive some Wall Street assets. Fifth, the theory of causing safety accidents is supported. The U.S. Treasury Department, the Federal Reserve and the president have frequently issued statements expressing the government's firm attitude towards Wall Street assistance to stabilize market confidence

trend chart of crude oil index and US dollar index. (source: good luck futures)

The Wall Street crisis is the continuation of the subprime mortgage crisis. Lehman Brothers, Merrill Lynch and AIG all caused the crisis by real estate losses or related to real estate. The debt crisis caused by real estate losses is an important reason for the Wall Street crisis. At present, the crisis has begun to spread to all directions in the financial field, and asset crises have occurred frequently, far beyond the scope of the subprime mortgage crisis. The bankruptcy of Hualian bank has become the largest commercial bank bankruptcy in the history of the United States. The short-term U.S. government rescue measures will guide the vane of market confidence, but the development trend of the crisis will be the leading factor affecting the macroeconomic trend in the medium and long term

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