A-shares make a major comeback! Global financial markets turn around instantly

Ask AI · How the U.S.-Iran ceasefire agreement sparked a global market reversal?

As market risk slid toward the edge of runaway, Trump went and TACOed again.

Less than an hour and a half after Trump’s so-called “final deadline” for Iran, the U.S. and Iran agreed to a two-week ceasefire. The news instantly relieved pressure across global financial markets and drove a rapid reversal.

On April 8, the stock market sounded the call to launch a counterattack.

China’s A-share three major indexes surged higher in a strong rebound. The Shanghai Composite Index regained the 3,900-point level, closing at 3,960.79 points, up 1.81%. The Shenzhen Component Index jumped more than 400 points, at 13,870.37, up 3.51%. The ChiNext Index returned to 3,300 points after several days, up 4.41%.

Market style shifted dramatically. Oil and gas and coal sectors sank sharply, with Blue Flame Holdings hitting the daily limit down. Guanghui Energy fell more than 9%, PetroChina fell more than 4%, and China Shenhua fell more than 3%. Defensive sectors were also weaker, with central SOE banks edging down slightly: Agricultural Bank of China, Bank of China, and Industrial and Commercial Bank of China all fell more than 1%.

Gold and other precious metals, which had been suppressed recently, surged more than 7%. Cultural media, internet, and construction machinery sectors rose more than 6%. Electronic components, software, semiconductors, and others rose more than 4%. On individual stocks, BlueFocus 20% locked limit-up; Luoyang Molybdenum rose more than 8%; Zijin Mining rose more than 6%.

Hong Kong stocks warmed up clearly. As of the time of publication, the Hang Seng Index was up 2.56% to 25,759.54 points; the Hang Seng Tech Index was up 3.7% to 4,852.44 points. The tech narrative returned to the market’s focus. Semiconductors rose more than 8%; Tianshu Zhixin rose more than 26%; HuaHong Semiconductor rose more than 13%; and Ruentex Technology rose more than 12%.

The Japanese and Korean stock markets, heavily influenced by international oil prices, performed even more aggressively. As of the time of publication, Japan’s Nikkei 225 was up nearly 5%, and South Korea’s KOSPI Composite Index was up nearly 6%.

The U.S. stock market is currently closed, but U.S. stock index futures have already surged across the board. As of the time of publication, Dow Jones futures small were up more than 2%; Nasdaq 100 futures small were up more than 3%; and S&P 500 futures small were up more than 2%.

On April 8, international crude oil prices plunged sharply. WTI crude oil futures briefly fell nearly 20%, and ICE Brent fell more than 16% during the day. On the early morning of April 8, Iranian Foreign Minister Aragchi issued a statement on behalf of Iran’s Supreme National Security Council, announcing that the Strait of Hormuz would achieve safe passage within two weeks.

Precious metals, which had been suppressed for days by a strong U.S. dollar, also showed a notable rebound. On April 8, spot gold rose back above $4,800; as of the time of publication, it was up more than 2%, at $4,815 per ounce. Spot silver rebounded strongly, hitting a new high since March 19. It was quoted at $76.6 per ounce, up more than 5%.

In the foreign exchange market, after inflation risks stemming from high oil prices were released to some extent, the U.S. dollar index fell sharply, down 0.67% to 98.9836. Non-U.S. currencies rebounded across the board: the euro rose more than 0.6% against the U.S. dollar, the Japanese yen rose nearly 0.7%, the British pound rose nearly 0.8%, and the offshore Chinese yuan rose more than 0.3% against the U.S. dollar. (China News APP)