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Boiling! Epic surge in prices
【Intro】A day when the market surged
China Fund News reporter Taylor
Brothers and sisters, today the whole world just exploded higher—Taylor feels like even breathing is sweet. I believe you’ve all bounced back today, right?
Let’s take a look back at what happened in the market.
Asia-Pacific’s epic surge, Europe’s surge
On April 1, Asian stock markets posted their biggest gain in a year. Bond prices also continued the uptrend. The market is optimistic that the Middle East conflict—which has been disrupting global markets and threatening energy supply—may be nearing the end.
Among them, Korea’s entire benchmark index is already approaching “limit up.” Chipmakers such as Samsung Electronics and SK Hynix each saw gains of more than 10%. Japan’s stock market surged by 2,600 points.
Meanwhile, after the close of trading in the A-share market, European stock markets also surged! Gains in Germany, France, and the UK were all around 2%.
This rally continued the rebound from overnight U.S. stocks. The market is betting that easing tensions will help restore crude oil supply and support economic growth.
If the conflict is resolved, it will help restore investors’ confidence after this five-week period of turmoil that has severely hit energy and stock markets—because some market indicators have already entered the technical correction range. Next, the market’s focus will also shift to how policymakers respond to the economic impact of elevated energy costs and supply disruptions, as well as whether this month’s corporate earnings reports—announced later—have already reflected growth pressure.
Xu Tai (Tai Hui), Chief Market Strategist for Asia-Pacific at JPMorgan Asset Management, said: “The U.S. has released signals that it wants to de-escalate the downgrade conflict, which helps risk appetite rebound in the short term—something that has already been reflected over the past 24 hours. But if the Trump administration adjusts its military strategy, markets could still see volatility.”
Trump will deliver a nationwide address on Wednesday at 9:00 PM Eastern Time, providing “important updates” on the Iran issue. He said Iran still may reach an agreement with the U.S., but at the same time emphasized that reaching an agreement is not a prerequisite for ending the war.
On Tuesday, Iranian President Masoud Pezeshkian said in a phone call with Antonio Costa, President of the European Council, that Iran “has the necessary willingness to end the war,” but the condition is that certain requirements be met—“especially ensuring key safeguards that prevent aggression from happening again.”
Nick Tweedale, Chief Market Analyst at AT Global Markets, said: “The market currently interprets all of this as broadly positive, believing the conflict will end. But personally, I’m not entirely convinced about the medium- to long-term outlook. Over the next few days, volatility driven by news will still occur, and investors will soon expect clearer evidence that the war is about to end.”
A-share markets surge
On April 1, the market opened strong across the board and trended higher all day. By the close, the Shanghai Composite Index rose 1.46%, the Shenzhen Component rose 1.7%, and the ChiNext Index rose 1.96%.
A total of 4,495 individual stocks rose, 65 hit the daily limit up, and 887 declined.
Pharmaceutical stocks exploded across the board.
Computing power hardware stocks surged. Zhili Fang’s “20cm” hit the limit up and reached a new high. Many stocks, including Mingtong Guangci, ZD Intelligence, and Rising Sun Technologies, all locked in their limit-up boards.
The shipping sector strengthened, with Jinkang Shipping and China Merchants Jinling all hitting the limit up.
On the downside, green power concept stocks adjusted. 惠天热电, 中闽能源, and 华电辽能 all hit the daily limit down.
Wishing for world peace.
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责任编辑:宋雅芳