On March 2, the US Dow Jones Index jumped up and down, first falling 500 points, and then rising 500 points. ICE cotton futures rebounded sharply driven by the red stock index, once rising 250 points during the session.
On the first day of March, stock markets in many countries around the world rose sharply. Although the new coronavirus is still the top priority in the world and continues to make traders and investors nervous, central banks of various countries have adopted active monetary policies to boost the market. increased market confidence. Federal Reserve Chairman Jerome Powell said on Friday that the Bank of America was ready to take action if necessary.
Last weekend, China released a record low PMI index of 35.7 in February, far lower than market expectations of 45. The contraction of China’s manufacturing industry has become a fact. Since factories have not fully resumed work, the global supply chain system has also been disrupted. Affected, China’s economic data in the later period is expected to be still not optimistic.
In addition to the rebound in the U.S. stock market, the sharp drop in the U.S. dollar index also stimulated investors to buy. In his recent speech on the new coronavirus, U.S. President Trump blamed the Federal Reserve’s interest rate policy for the continued strength of the U.S. dollar. The depreciation of the U.S. dollar will promote the export of U.S. products, which is an important fundamental benefit.
According to CFTC data, the net long position of funds last Friday was 22,400 lots, a decrease of nearly 10,000 lots in a single week. Thursday’s weekly U.S. cotton export report will reflect market demand during last week’s collapse in cotton prices. It is reported that after cotton prices plummeted last week, textile mills took the opportunity to increase purchases, which also provided support for the stabilization of cotton prices. </p
