[Market Morning] Powell smashed the hope, Gold Fell Below 1740, the Dow Plummeted by 1,000 Points, A Number of European Central Bank Officials Warmed Up for September's "Big Move", and Electricity Prices In Many European Countries Broke the Table

Last Friday, after Powell’s speech, spot gold plunged in the U.S. market, falling below the $1,740 mark, and finally closed down 1.23% at $1,736.86 per ounce; spot silver continued to decline after rising and falling back, and finally closed down 2.07%, at $18.88 an ounce.

Comment: Gold prices fell more than 1% on Friday after Federal Reserve Chairman Jerome Powell said in a speech at Jackson Hole that the U.S. economy needs tighter monetary policy until inflation is under control. Powell said that could mean slower growth but gave no hint of what the Fed might do at its September policy meeting.

Suggestion: short Spot gold at 1734.90, and the target point is 1723.80.

The U.S. dollar index showed a V-shaped reversal, approaching the 109 mark in late trading, and finally closed up 0.378% at 108.85; the 10-year U.S. bond yield erased most of the intraday gains and finally closed up 0.50% at 3.039%. The 2-10-year U.S. yield inversion range was as high as 38 basis points at one point, and the U.S. 5-30-year Treasury yield curve ushered in the second inversion this month.

Comment: Powell warned on Friday that there is no quick fix to the price spike and that monetary policy will need to remain tight “for some time” until inflation is under control, meaning slower growth and a softer job market; families and businesses are suffering “some pain.”

Suggestion: short position of EUR/USD 0.99380, target point 0.99090.

In terms of crude oil, WTI crude oil was close to the $91 mark, and then recovered most of the losses in the day, and finally closed down 0.03% at $92.96 per barrel; Brent crude oil closed up 0.87% at $100.70 per barrel.

Comment: Oil prices closed higher on Friday, helped by Saudi Arabia’s signal that OPEC might cut production, but the trade was choppy as investors digested and ultimately downplayed Fed Chairman Powell’s warnings of future economic pain.

Suggestion: long U.S. crude oil is 92.800, and the target point is 95.530.

U.S. stocks tumbled in intraday trading, with the Dow closing down 3.03% and constituent 3M down more than 9%. The Nasdaq closed down 3.94%, the S&P 500 fell 3.37%, the Nasdaq 100 closed down more than 4%, and star technology stocks closed down across the board. The S&P 500 and Nasdaq 100 posted their biggest weekly losses in two months.

Comment: The three major U.S. benchmark stock indexes all fell more than 3% on Friday after Federal Reserve Chairman Powell signaled that the Fed would continue to raise interest rates to curb inflation, which dashed some investors’ hopes for a slower rate hike path.

Suggestion: Go short at the 12403.200 positions of the Nasdaq index, and the target point is 12199.200.

Most of the issues in the resumption of the implementation of the comprehensive agreement on the Iranian nuclear issue have been resolved.

Iranian Foreign Ministry spokesman Kanani said on August 28 that most of the issues in the negotiations on the resumption of the implementation of the comprehensive agreement on the Iranian nuclear issue had been resolved, and the remaining issues are “sensitive, important and decisive.” Iranian experts are holding a special meeting to consider the U.S. response to Iranian proposals aimed at resolving the remaining issues. The Iranian side will reply to the U.S. side as soon as possible after the expert meeting, and the specific time has not yet been determined. Iran sees the current negotiating momentum as positive and forward. Iran is seeking a good and lasting deal, but negotiations are a “two-way street,” and all parties should meet their obligations. It is hoped that the U.S. will act rationally, form political will, and consider Iran’s legitimate expectations.

Oil and gas exports increased; Qatar’s total exports in July went up 61.9% year-on-year.

According to data released by the Qatar National Bureau of Statistics, in July this year, Qatar’s exports of natural gas and other gaseous hydrocarbons increased by 90% year on year, and exports of oil and its derivatives increased by 35% year on year. Benefiting from this, Qatar’s total exports in July reached 44.4 billion Qatari riyals, an increase of 61.9% year-on-year and a month-on-month increase of 12.4%. The trade surplus was 15.2 billion riyals, a year-on-year increase of 78%. Qatar is one of the world’s leading producers and exporters of LNG, and its natural gas and oil exports account for about 80 percent of its total exports.

French PM opens the door to an energy windfall tax.

French Prime Minister Borne has kept open the possibility of new taxes on corporate “excess profits.” French lawmakers rejected the proposal last month. Borne said she would prefer other measures than a windfall tax, such as companies lowering consumer prices and giving employees bonuses to boost their spending power. But she pointed out that while the government’s policy has been to lower corporate taxes, it is difficult for the public to understand why companies can make huge gains while ordinary people struggle to make ends meet. Her remarks could fuel new calls for a special tax on energy producers such as Total and Engie, as well as shipping giant CMA CGM. While the government did not support the move, it did gain support from some lawmakers in President Emmanuel Macron’s party.