Overnight US stocks | US and Iran demand compensation from each other for military conflict losses, international oil prices soared 5%, and the three major indices closed down

The Zhitong Finance App learned that on Monday, the three major indices closed down, international oil prices rose, and market confidence in reaching an agreement between the US and Iran in the short term to resume normal shipping in the Strait of Hormuz declined markedly. US President Trump said on social media that Iran is seeking compensation for losses caused by the military conflict over the past five months, but this request has never been raised during negotiations between the two sides before. Trump said, but this is an interesting idea, because now I am also demanding compensation from Iran for the human casualties it has caused in many clashes, including the victims of the “Cole” destroyer incident and other combat deaths. Trump is also demanding compensation from Iran for the families of protesters it has suppressed over the past 50 years, and claims that 52,000 people have died in the past five months of clashes. Trump said that US representatives have been instructed to formally submit relevant compensation claims in all future negotiations.

[US Stocks] At the close, the Dow fell 60.949 points, or 0.11%, to 53975.98 points; the NASDAQ fell 85.258 points, or 0.32%, to 26605.35 points; the S&P 500 index fell 4.53 points, or 0.06%, to 7753.11 points. Apple (AAPL.US) fell 1.5%, SpaceX (SPCX.US) rose 4%, SK Hynix (SKHY.US) fell 1.9%, and Intel (INTC.US) fell 4%. The Nasdaq China Golden Dragon Index closed up 1.65%, while Alibaba (BABA.US) rose 3%.

[European stocks] The German DAX30 index fell 26.68 points, or 0.10%, to 26328.67 points; the British FTSE 100 index fell 39.27 points, or 0.36%, to 10861.82 points; the French CAC40 index rose 11.10 points, or 0.13%, to 8726.03 points; the European Stoxx 50 index rose 10.39 points, or 0.16%, to 6534.25 points; the Spanish IBEX35 index fell 31.41 points, or 0.16%, to report 2015 5.69 points; Italy's FTSE MIB index fell 83.19 points, or 0.15%, to 53634.00 points.

[Asian Stock Market] The Nikkei 225 Index rose more than 2%, and the Korea Composite Stock Price Index rose 0.65%.

[US Dollar Index] The US dollar index, which measures the US dollar against six major currencies, rose 0.27% on the same day and closed at 99.809 at the end of the foreign exchange market. As of the end of the exchange market in New York, 1 euro was worth 1.1542 US dollars, lower than 1.1564 US dollars on the previous trading day; 1 pound was worth 1.3509 US dollars, up from 1.3499 US dollars on the previous trading day. 1 US dollar was worth 159.24 yen, up from 157.55 yen on the previous trading day; 1 US dollar was worth 0.8101 Swiss franc, higher than 0.8076 Swiss franc on the previous trading day; 1 US dollar was worth 1.3942 Canadian dollars, higher than 1.3937 Canadian dollars on the previous trading day; 1 US dollar was worth 9.5016 SEK, up from 9.4701 on the previous trading day.

[Cryptocurrency] Bitcoin fell more than 1.4% to $64119.55 as of press release; Ethereum fell more than 2% to $1877.52.

[Crude oil] Light crude oil futures for September delivery on the New York Mercantile Exchange rose $3.95, or 5.05%, to close at $82.13 a barrel; London Brent crude oil futures for October delivery rose $4.17, or 4.99%, to close at $87.72 a barrel.

[Precious Metals] Spot gold rose 1.1% to $4389.29; spot silver fell slightly to $65.71.

[Macro News]

Trump says he has only had a brief conversation with Walsh since taking up his new job, denies frequent communication. US President Trump said on Monday that since Federal Reserve Chairman Walsh took office, the two had only one “brief” conversation, and denied claims from the outside world that the two sides had frequent communication. Hassett, director of the US White House National Economic Council, said last week that the two “often discuss economic issues,” but other people familiar with the matter said that calls between the two sides were irregular and not very frequent. Earlier reports said that since Walsh was confirmed as the chairman of the Federal Reserve in May, Trump has had many conversations with him, and Trump has asked him about Walsh's predictions and views on the economic outlook. Trump once again expressed his desire to lower interest rates, but said he “100% supports” Walsh and emphasized that the Federal Reserve's policy is determined jointly by the Board of Governors.

Federal Reserve Hamak: Multiple rate hikes may be needed to depress inflation. Cleveland Federal Reserve Chairman Hamak said that current inflation has not returned to the target level, and the Federal Reserve may need to raise interest rates more than once. She said that a 25 basis point rate hike “will not have much impact on the economy,” but she is unwilling to predict the exact number of rate hikes or the final interest rate level. Hamak believes that the current interest rate range of 3.50%-3.75% does not clearly limit the economy, and companies are still not reducing growth investment due to high interest rates, so “now is the time to act.” She said that the longer you wait, the more difficult it will be for inflation to return to 2%. Hamak also stressed that there are currently no obvious problems in the job market, and the July employment data will not change her concerns about inflation. She believes that the market can only assist the Federal Reserve and cannot replace the Federal Reserve in taking action. Hamak opposed keeping interest rates unchanged at the Federal Reserve's July interest rate meeting, preferring to raise interest rates by 25 basis points.

Trump extended the 90-day shipping exemption from the Jones Act to energy transportation. Trump extended the Jones Act exemption that allows foreign ships to transport oil and other commodities within the US for 90 days, but added new restrictions. As the war in Iran disrupted the flow of crude oil and pushed up fuel costs, Trump continued to maintain relevant exemptions while reducing the scope of application. The new exemptions will focus on energy transportation, including gasoline, aviation fuel, crude oil, naphtha, liquefied natural gas, soybean oil, and fertilizers. In the future, the Pentagon will need to consult with the US Maritime Administration before deciding whether to exempt individual cruises. The White House said the exemption will help ensure continued access to critical resources for the US military and key industries, and increase domestic transportation of products such as gasoline, diesel, and aviation fuel. However, US shipbuilders and some members of Congress believe that the exemption weakens the protection of the local shipping industry under the Jones Act.

[Individual Stock News]

Nvidia announced that it has teamed up with six major financial giants to lay out a 500 billion US dollar AI infrastructure financing system. Nvidia (NVDA.US) announced on the 10th local time that it has established strategic partnerships with Apollo, BlackRock, Brookfield, Goldman Sachs and KKR to build an independent computing power financing platform and long-term mobilizing more than 500 billion US dollars of third-party capital to build artificial intelligence infrastructure. Nvidia said the new financing platform transformed Nvidia's computing and full-stack artificial intelligence infrastructure into asset classes that global capital can invest in, expand the scope of access to artificial intelligence factories, achieve long-term revenue linked to usage, and support Nvidia's ecosystem growth in hardware sales and software applications.

Damo launched a $1.5 trillion US innovation infrastructure program to focus on cutting-edge technologies such as AI. Morgan Stanley (MS.US) announced the launch of the “American Innovation Infrastructure Initiative”, which plans to promote about $1.5 trillion in capital raising, financing, consulting and related investment activities over the next 10 years to support the next phase of US economic growth. The plan will focus on strategic areas such as artificial intelligence, advanced computing, quantum technology, semiconductors, data infrastructure, cybersecurity, aerospace, defense, and key minerals, and promote the construction of digital, physical, and energy infrastructure. Morgan Stanley said the initiative aims to support the construction of enterprises, technology and platforms critical to the US economy and national security, and to integrate its investment banking, capital markets, wealth management and investment management capabilities to support enterprises from entrepreneurship to large-scale development.

[Major Bank Ratings]

UBS Group: Raising the target price for Berkshire Hathaway B (BRK.B.US) from $585 to $604