Market Analysis: The Global Epidemic Continues To Spread, And The Domestic Cotton Market Is Hard To Get Away With.

Foreign countries have become the main battlefield of epidemic prevention. According to the latest real-time statistical data of Johns Hopkins University in the United States, as of 5:30 Beijing time on March 16th, the total number of new crown pneumonia cases has been diagnosed in the world, and 80 thousand cases have exceeded 80 thousand cases outside China, reaching 81625 cases. The newly diagnosed cases of new crown pneumonia outside China have surpassed China and become the main battlefield of epidemic prevention. At present, the new crown pneumonia epidemic has covered 143 countries in Asia, the Americas, Europe, Oceania and Africa. The epidemic continues not only to spread abroad, but also to some senior officials. In recent years, the focus of prevention and control has also shifted to controlling imported cases.

Domestic and international announced timely reduction of interest rates to curb economic downturn. Last night, the Fed announced that it would cut the benchmark interest rate to near zero and launch a new round of quantitative easing of $700 billion to cope with the COVID-19 virus's impact on the US economy. Earlier, the Fed announced in the past two weeks that it had cut interest rates by 50 basis points and expanded the overnight credit refinancing scale of the financial system to $1 trillion and 500 billion. In order to support the development of the real economy and reduce the actual cost of social financing, the central bank decided to implement inclusive financial orientation in March 16, 2020, and the bank's orientation dropped to 0.5 to 1 percentage points. In addition, the eligible joint stock commercial banks will be further directed to 1 percentage points to support the issuance of loans in the inclusive financial sector. The above directional reduction has released a total of 550 billion yuan of long-term funds.

Zheng cotton is hard to be independent and keeps low innovation. In March 16th, Zheng cotton went down and left the CF2005 contract low to 11435 yuan / ton. In the United States and China, the reduction of interest rates has not stopped the downward trend of Zheng cotton, and some market participants believe that the current systemic risk is still in the upgrading stage. Futures prices continue to explore, the spot market has also been devastated, buy up or not down, psychological factors, traders said almost no queries on consecutive days, the trading atmosphere is really cool. The hope of futures investors to copy the bottom is also very slim. Most traders are delisting and waiting to wait and see the development of the epidemic.