Shanghai Composite Trading forecasts and signals

Chinese investors come out to mass protests. For example, on July 10, thousands of people came to the branch of the People's Bank of China in Zhenzhou, since their deposits in 4 banks have been frozen since April:Yuzhou Xinminsheng Village;Zhecheng Huanghuai Community;Shangcai Huimin County;New Oriental County Bank.How it happened: why depositors lost access to their savingsThere are a lot of regional private banks in China, they are also called "rural". According to the law, they must carry out their activities exclusively "at the place of residence". But in practice, this did not prevent them from attracting deposits from people from all over the Middle Kingdom through online platforms - including Du Xiaoman Financial and JD Finance, owned by Baidu and JD.com . And the authorities just turned a blind eye to it.However, recently the national regulator accused a major shareholder of the four listed banks, Henan New Fortune Group, of illegally attracting depositors' money.Did Covid hit the discontented?The authorities, alas, are clearly not on the side of the victims.The first protests took place back in May, the next action was to take place in mid-June - cheated depositors from all over China were going to come to it. But then their electronic "health codes" suddenly changed from green to red, which means that a person is sick with covid and must stay at home in quarantine. So it didn't work out to get together.Well, at the rally on July 10, the security forces, both in uniform and in civilian clothes, penetrated into the crowd and began beating the protesters.But what about deposit insurance?In banks, customers were told that deposit products were legal and protected by the deposit insurance system. In China, deposits of 500,000 yuan (~$75,000) are guaranteed in case of bank bankruptcy. But if a government investigation finds the deposits "not in accordance with the law," then the depositors will never see their money.It is also unknown who exactly has to pay the debts of "rural" banks: local authorities or central ones? However, after the latest protests, it was reported that the first payments to victims of the banking industry should take place this Friday.What is happening in China in July 2022?Social tension in China is growing, and more and more often you can hear about the clashes of the population with the authorities: people are locked up in factories, then they do not give out deposits. But the 20th Party Congress is on the nose.China is not such a communist country. When it comes to financial pyramids and the interests of banks, such a draconian version of capitalism is flourishing in the country that Wall Street is resting.So far, the protests are centered around four small banks. In total, there are about 4,000 such "banks" in China, which collectively control assets worth $14 trillion. But who are they lending to? What if the problems of the first 4 swallows are directly related to problems in the real sector?For example, the combined sales of 100 leading developers have already "collapsed" by half, the construction sector (30% of China's GDP) can pull the entire Chinese economy with it.  And this, in turn, is able to "test the strength" of a larger number of banks and the entire deposit insurance ...

The market the day beforeThe session on February 25, the main American stock exchanges ended in the green zone. The S&P 500 rose 2.24% to 4,385 points, the Dow Jones gained 2.51%, and the Nasdaq rose 1.64%. All sectors included in the S&P 500 showed positive dynamics, and producers of raw materials (+3.58%) and non-cyclical consumer goods (+3.12%), as well as utility service providers (+3.14%) became the leaders of growth.Company newsGMV Farfetch (FTCH: +39.4%) results for the fourth quarter exceeded consensus. The company's forecasts for 2022 also turned out to be stronger than general market expectations.Block (SQ: +26.1%) reported better than forecast for EBITDA and net revenue. Analysts note high rates of user engagement of CashApp and stronger results than PayPal (PYPL) in general.Revenue and EPS of Foot Locker (FL: -29.8%) for the fourth quarter of last year exceeded expectations, but the annual forecast was significantly below market-wide benchmarks.ExpectationsDespite the geopolitical tensions, the attention of US stock market participants is focused on the comments of the Fed regarding the tightening of monetary policy. At the moment, Jerome Powell adheres to previously announced plans to raise interest rates in March, pointing to the threat of further acceleration of inflation. A strong driver for its growth is the rising price of oil, and the recent surge in volatility in prices for agricultural goods, according to the WSJ, may increase price pressure on consumer spending. Ukraine and Russia provide about 30% of world wheat exports, 19% of corn supplies and 80% of sunflower oil. This highlights the degree of vulnerability of food prices. The conflict also puts pressure on supply chains: shipping from Ukraine and Russian ports has been disrupted (WSJ). Russia is a major producer of palladium, nickel, cobalt and neon gas. The ban on the supply of this raw material from the country can put additional pressure on the microchip market. The EU's decision to close its airspace to Russian flights may lead to an increase in the cost of transporting goods from Europe to Asia. A survey conducted by the FT revealed investors' concern that the previously predicted six rate hikes of 25 bps this year will not be enough to control inflation.South-East Asian trading platforms demonstrated multidirectional dynamics on February 28. China's CSI 300 rose by 0.18%, Japan's Nikkei 225 rose by 0.19%, and Hong Kong's Hang Seng lost 0.24%. EuroStoxx 50 has been declining by 3.47% since the opening of the session.Brent crude futures are quoted at $99 per barrel. Gold is rising to $1,904 per troy ounce.In our opinion, the S&P 500 will hold the upcoming session in the range of 4300-4380 points.MacrostatisticsThe Chicago PMI index for February will be published today (forecast: 63 points after 65.2 in January). If the actual result coincides with expectations, it will indicate a decline in business activity in the United States.Sentiment IndexThe sentiment index dropped to 41 points amid geopolitical instability.Technical pictureThe S&P 500 is showing a short-term rebound. The RSI indicator rises to a neutral level, and the MACD indicates the attenuation of a short-term "bearish" trend, but does not show a signal for a reversal. The S&P 500 technical chart shows a trend change to a downward one, which is supported by a negative balance of risks in the market. The nearest resistance level is at 4460 points, where the 200-day moving average coincides with the upper limit of the descending channel. Overcoming it may indicate a reversal of the downward trend. If this does not happen, the benchmark will continue to move within the boundaries of the channel indicated above.In sightOn March 1 , the report for the fourth quarter of 2021 will present Salesforce.com (CRM) is one of the market leaders in applied cloud software. Factset's consensus forecast assumes a 24.6% increase in the company's revenue for October-December, to $7.24 billion, with a 27% decrease in non-GAAP EPS, to $0.75. From the indicators of the latest reports of cloud providers (Microsoft, ServiceNow, Oracle), we can conclude that there is a strong demand for SaaS solutions. By the end of 2022, Gartner expects PaaS and SaaS markets to grow by 25% and 18%, respectively. We believe that in the next few quarters, the Salesforce business will be supported by the cross-selling effect as a result of the purchase of Slack. We believe that Slack will also continue to demonstrate an active improvement in performance against the background of the development of functionality and close integrations with the main Salesforce solutions. We expect that the focus of investors' attention will be on the results of the "data" segment (includes MuleSoft and Tableau), since MuleSoft faced certain difficulties in the last quarter. In addition, the investment community will be very interested in marginality data, which were strong at the end of the third quarter. Management's forecast for the whole of 2022 may also have a significant impact on investor sentiment.The developer of the platform for intelligent data processing Splunk (SPLK) will present a quarterly report on March 2. The consensus forecast assumes a decrease in adjusted EPS from $0.38 received a year earlier to -$0.21, with an increase in revenue by 4% YoY, to $774.6 million. Cloud revenues account for about 30-35% of sales and show a tendency to expand, taking into account the transition of Splunk to a subscription model and a pricing format based on the volume of workloads. Additional investments in cloud solutions for IT monitoring and security can be a major factor for accelerating the growth of renewable income (ARR) in the short term. At the same time, the company's performance may also be affected by tougher competition in the United States from cloud providers Datadog and Elastic, which, in the absence of sufficient geographical diversification of revenue, will hinder the long-term expansion of the customer base.Costco Wholesale (NASDAQ: COST) on Thursday will report financial results for the second fiscal quarter. According to forecasts, EPS will be $2.75 per share (+28.5% YoY), and revenue will reach $51.35 billion (+14.7% YoY). In the second quarter of the fiscal year, Costco probably benefited from seasonal sales, including in the last weeks of holiday shopping. Consolidated comparable sales excluding fuel and foreign exchange may have increased by 9.7%, with 9.7% in the US, 8.6% in Canada and 7.5% in other countries, based on the Bloomberg consensus. As retailers cut costs due to incentives, this effect could have less impact on Costco than on competitors, since historically the company sees fewer benefits from such actions. Membership renewal rates remain high thanks to automatic renewal and more Executive members, who tend to visit stores more often and spend more. In the second quarter, the growth rate of the e-commerce segment may reach an average or large single digit number ...

The market the day beforeOn January 24, the main indices on US stock exchanges ended trading in the green zone, although the markets have fallen by more than 3% since the beginning of the session. The S&P 500 rose 0.28% to 4410 points, the Nasdaq rose 0.63%, the Dow Jones gained 0.29%. The cyclical consumer goods sector showed the best dynamics (+1.21%). Utility companies looked worse than the broad market (-1.03%).Company newsAcacia Research Corp., which is controlled by the hedge fund Starboard Value LP, has made an offer to buy Kohl's (KSS: +36.0%) at a price of $64 per share.Adtalem Global Education (ATGE: +13.7%) is selling the Wendel Group financial services division, including the Association of Certified Anti-Money Laundering Specialists (ACAMS), for $1 billion. The transaction is expected to close in the first half of 2022.Opko Health (OPK: -23.8%) announced on Friday that the FDA has not approved the drug somatrogon to eliminate growth hormone deficiency in children.ExpectationsYesterday, the analytical agency IHS Markit published Purchasing Managers' Indices (PMI). Having lost 2.7 points, the January index of business activity in the manufacturing sector fell to 55 points (the lowest level in 15 months) with a consensus of 56.1 points. The report notes that production volumes have not changed in general, but the growth rate of new orders has been the slowest since July 20, 2021, while employment has declined for the first time since that moment. However, cost inflation slowed to its lowest level since May 2021.The index of business activity in the service sector in January fell by 6.7 points to 50.9, falling short of market-wide expectations at 54.7 and becoming the lowest indicator in 18 months. Pressure on the index is exerted by the shortage of labor and the active spread of the omicron strain. The index of business activity of new businesses turned out to be the lowest in four months, although the indicator still remains strong and corresponds to the average value for a longer period. Cost of sales inflation in this segment also slowed down, dropping to the lowest level in almost a year. Production expectations, according to the report, have reached annual peaks, as the new strain of coronavirus does not have a negative impact on demand, while the growth in the number of new enterprises indicates an improvement in the situation in supply chains after the relaxation of quarantine restrictions.Stock markets in Southeast Asia showed a downward trend. Japan's Nikkei fell by 1.66%, China's CSI 300 fell by 2.26%, Hong Kong's Hang Seng lost 1.67%. EuroStoxx 50 has been growing by 0.42% since the opening of trading.Brent crude futures are trading at $84 per barrel. The price of gold is around $1,837 per troy ounce.In our opinion, the S&P 500 will hold the upcoming session in the range of 4330-4490 points.MacrostatisticsThe consumer confidence index will be published today. The consensus forecast assumes a decrease in the indicator from 115.8 points in December to 110.5.Technical pictureThe S&P 500 did not consolidate below the level of 4,300 points and demonstrated an intraday reversal to growth. Yesterday's daily candle formed a "hammer" pattern, which may signal a change in the direction of a short-term downtrend. The RSI continues to be in the oversold zone, below 30 points, but its dynamics in combination with the behavior of the MACD indicator indicates a slowdown in the downward trend. The nearest support is located in the area of 4230-4300 points.In sightToday, the report for the fourth quarter will be presented by the world's largest software developer Microsoft (MSFT). According to the consensus forecast of Factset, the issuer's revenue will grow by 17.7%, to $50.71 billion, with an increase in adjusted diluted EPS by 14.3%, to $2.32. We believe that the drivers that provided growth in the past quarters will remain relevant. In particular, the Productivity & Business Processes segment (office, application solutions and LinkedIn) has maintained a strong momentum for expansion in recent months, and the Intelligent Cloud direction (server products and Azure) demonstrates strong sales dynamics, including thanks to specialized products. More Personal Computing also maintains a strong position thanks to good reviews about the new OS and improved Intel CPU performance on it. However, interruptions in the supply of components are likely to put pressure on PC sales, which will limit demand for the OS. Market participants will focus on two key aspects of the report: revenue forecasts for the next quarter and year (if they are presented), as well as margin levels and estimates of profitability dynamics in the future. A deterioration in the growth forecasts of one of the indicators may put significant pressure on the issuer's quotes. We also expect more detailed information about the recently announced acquisition of Activision ...

The market the day beforeTrading on December 28 on the main American stock exchanges ended without a single dynamic. The S&P 500 index dropped 0.1% to 4,786 points, the Nasdaq dropped 0.56%, and the Dow Jones added 0.26%. Representatives of utilities (+0.93%) and non-cyclical consumer goods (+0.62%) looked better than the market. The outsider was the IT sector (-0.59%).Company newsVista Outdoor (VSTO: +4%) announced the acquisition of the manufacturer of hunting equipment Stone Glacier at the expense of available funds. No other details about the terms of the deal were disclosed. The purchase may favorably affect Vista's profit.Kiniksa Pharmaceuticals (KNSA: -2.4%) presented the results of the third phase of clinical trials of the drug mavrilimumab, intended for the treatment of atypical pneumonia developing in patients with COVID-19. The study did not reach the primary control point.ExpectationsThe investment community continues to monitor the situation with the incidence of COVID-19 in the United States, where the number of infected reached a historic high the day before. This is largely due to the spread of the omicron strain. At the same time, during the Christmas holidays, many testing points were closed, so not all cases of infection are reflected in the statistics. The number of hospitalized patients continues to grow, although mortality has not yet shown a pronounced trend. At the same time, due to the increase in the volume of hospitalization, its level may begin to grow later.In New York State, the number of patients admitted to hospitals is at record levels, but their total number is small compared to last year's peak values. There is no shortage of beds. The US authorities are trying not to resort to strict quarantine restrictions, stimulating vaccination and purchasing drugs from COVID-19. President Biden intends to establish a vaccination requirement for domestic flights, which will further activate the course of the vaccination campaign.Asian trading platforms closed in the red. China's CSI 300 lost 1.46%, Hong Kong's Hang Seng declined 0.83%, and Japan's Nikkei 225 dropped 0.56%. EuroStoxx 50 has been down 0.14% since the opening of trading.Risk appetite is moderate. The yield of treasuries remained at 1.48%, Brent crude futures are quoted at $78.7 per barrel. Gold is declining to $1,803 per troy ounce.In our opinion, the S&P 500 will hold the upcoming session in the range of 4770-4820 points.MacrostatisticsPublications of significant macrostatistics are not planned for today.ReportsOn December 29, the results for the fourth quarter of the fiscal year will be published by the fuel cell manufacturer FuelCell Energy, Inc. (FCEL). One of the main goals of the company is to reduce the carbon footprint. To achieve this goal, FuelCell Energy focused on providing customers with services for the implementation of technologies for capturing and reducing emissions. The Factset consensus assumes FuelCell Energy revenue growth in the reporting period by 28.2%, to $21.8 million. Adjusted EPS will also rise to -$0.03, compared to -$0.08 a year earlier. The company is increasing capacity under management. Over the past 12 months, its portfolio has increased by 30%, to 34 MW. However, the issuer has not been able to make a profit yet. Analysts interviewed by Factset believe that it will generate positive EBITDA only by the end of 2023. In November of this year, FuelCell Energy signed an agreement to extend for six months a pilot project to reduce carbon dioxide emissions at the ExxonMobil plant in the Netherlands, whereas it was originally planned to complete the program on October 31, 2021. The share of revenue attributable to ExxonMobil Research and Engineering Company (EMRE) at the end of FY2020 and the third quarter of FY2021 amounted to 32% and 23%, respectively. Although the agreement with this counterparty is likely to provide additional cash flows, however, the company's capitalization may be pressured by the postponement of the adoption of the Build Back Better bill.Technical pictureThe S&P 500 continues to move towards the upper limit of the ascending channel, updating the historical maximum. The nearest support remains near the 50-day moving average. The RSI and MACD indicators indicate the development of a "bullish" trend characteristic of the last trading weeks of the ...

Is the Chinese government buying assets on a drawdown?On April 30, the state-owned company WangTouZhongWen Technology acquired shares in the subsidiaries of ByteDance (owner of TikTok) and Weibo. We understand what this means for investors.Not really in ByteDanceThe state-owned company acquired a 1% stake in Beijing ByteDance Technology (a daughter of the holding company ByteDance) to get a seat on the board of directors.However, due to the structure of the holding organization, a share in a subsidiary structure does not give the government a share either in the parent structure of ByteDance itself or in TikTok, which the company owns.  In other words, instead of selling a stake in a holding company that includes foreign enterprises, the firm agreed that the government should enter into local enterprises.Nevertheless, this step tells us that the Chinese government continues to exert quite a serious influence on companies in the technology sector.  Not for the first timeIn fact, this is not an isolated case. Chinese government agencies often acquire shares in technology companies. For example, WangTouTongDa, which is owned by a Chinese Internet investment fund, is an investor in online content platforms Kuaishou Technology, Ximalaya, AI startups, etc.The purpose of all these acquisitions is to get a seat on the board of directors of a private company and put your own person there.  It is an obvious fact that Beijing is increasing its control and influence among local media and technology companies by such actions.  It is quite possible to further strengthen control by buying out shares in organizations.  Despite the fact that this transaction does not have a specific impact on ByteDance, it forms a vector of development and may be negatively perceived by potential investors on the eve of the company's planned ...

In the first seven months of this year, retail sales in China increased by 20.7% compared to a year ago. They reached the amount of 24.7 trillion yuan. According to the data of the state administration of the country. The growth rate of retail in cities and rural areas was 20.9% and 19.4%, respectively. The volume of online sales increased by 21.9% year-on-year to 7.1 trillion yuan. Sales of products and clothing in online stores increased by 21.6% and 15.8%. In July, retail sales in China increased by 8.5% compared to the same month last year to 3.5 trillion yuan. Last year ended with a drop in retail volume by 3.9% to 39.2 trillion yuan. At the same time, the annual volume of online sales jumped by 10.9% to 11.8 trillion yuan. The statistical office of China also reported an increase in the country's industrial production against the background of a successful recovery after the crisis of its economy. For the period from January to July inclusive, the volume of industrial production increased by 14.4% year-on-year. The July indicator increased by ...

Japan's Nikkei (+0.1%)China's Shanghai Composite (-0.3%)South Korean Kospi (-1.4%)Hong Kong Hang Seng (-1.1%)Australian ASX (+0.5%)The main thingsThe next trading week goes to the players' piggy bank for promotion. The US market does not get tired of rewriting the highs, the volatility of the indices is still low, overbought is ignored. This indicates the lack of a proper driver for the fall of risky instruments.The raging inflation and the recovery of the US labor market, which act as benchmarks for the Fed's monetary course, could have been the incentives for the index reversal, but price pressure weakened in July, and the spread of new strains of the virus restrains the regulator from sudden movements.Commodity assets are stabilizing after a significant dip in the first half of the week. Oil futures are trading near $71 per barrel of Brent. Consolidation above the level will give strength to the bulls in the short term, but it is unlikely to change the medium-term trajectory of commodities.Asian marketsIn the Asia-Pacific markets, there is a significant discrepancy in the dynamics of country stock indices.China's Shanghai Composite is down by a third of a percent, and the Hang Seng index of autonomous Hong Kong is falling by more than a percent. Nevertheless, the market panic at the end of August has been largely stopped, and the composite benchmark of Chinese shares is preparing to close the week above the bar of 3,500 p., which is somewhat surprising — macro statistics give an unambiguous conclusion about the slowdown of the Chinese economy, and regulatory risks, judging by the "Plan 2025" project, remain.The NBK stands on the protection of the market and the expectations of expanding the liquidity of the financial system, but the statistics of the banking sector indicate the unwillingness of credit institutions to invest in a stagnant economy experiencing a natural lull after the rapid post-pandemic recovery of 2020-early 2021.According to the set of introductory data, the Shanghai Composite's July drawdown is rather technical in nature — the bears are ready to return at any moment.South Korea's Kospi is falling by 1.5% amid sales of the high-tech sector, and in particular a sharp decline in the index heavyweight Samsung (-4%). The composite benchmark of the stock market fell to the levels of the end of May.Of course, the market today is dominated by an internal story caused by the UDO of the vice president of the corporation, but also macrostatistics from the labor market, signaling an increase in the probability of the end of the Korean soft monetary cycle, and China's plans to tighten regulation of the high-tech sector, influence the buyers' positions.Thus, the multidirectional dynamics of the Asia-Pacific markets today does not give a clear signal for the opening of European platforms. However, the overbought risk capital markets still indicate a temporary pause in the rise of European benchmarks on Friday.American sitesA characteristic feature of a strong trend, in our case an upward one, is the low responsiveness of the market to the negative and the rapid wagering of the positive. If data on July fading inflation was released on Thursday and the stock market cheered up, because it regarded the fact of slowing price pressure as a factor in the continuation of the Fed's monetary policy, then yesterday's metrics on production inflation, reflecting a further rise in prices, were simply ignored by investors.As a result, the trading week ends with another victory of the bulls, and the S&P 500 broad market index marked another peak above 4460 p. The next landmark, unless something unexpected happens, is the round mark of 4500 p.In the morning hours of Friday, the futures for the index of the same name are running above 4450 p., and the VIX volatility indicator fell to the lows of the year, which again refuses to support players to lower the overheated stock market.The main marker for the Fed is still the situation on the labor market, because the authorities judge the recovery of consumer activity in the country by the dynamics of employment.Yesterday's data on the number of applications for unemployment benefits again reflected an improvement: the number of people in need of state support fell to 375 thousand, this is very close to the record June lows of 368 thousand. from the post-pandemic period. The risk now is the third wave of the virus, so investors shrugged off the positive, threatening to intensify conversations about curtailing the quantitative programs of the Federal Reserve.Thus, American bulls continue to get richer, and bears are forced to wait for the actual steps of the Fed to prevent the economy from overheating. Only a slowdown in the pumping of the market with liquidity can shake the positions of players to increase, but this is not happening yet. From a technical point of view, it will be possible to talk about the activation of bears only after the return of the S&P 500 under 4430 p.CommoditiesOil prices are declining at Friday's trading within a percentage. By the standards of the volatility of the instrument, such a deviation is insignificant. October Brent futures — $70.7.In general, the trading week will be remembered by the participants of the commodity market with an extended amplitude of fluctuations in oil prices. As expected, the contracts managed to register at the lows of the month, under $68 per barrel, and rebound to $71.The factors of influence are the same - issues of OPEC+ quotas, the dynamics of the incidence of mutating coronavirus, trends in macro indicators of the Asia-Pacific region and inflation in the States.The introductory conditions of the energy market allow for the preservation of high volatility of exchange-traded instruments, with an attempt to further rebound futures, nevertheless, the medium-term trajectory has been chosen - the attenuation of pro-inflationary factors is likely to intensify, which will continue to dominate the commodities ...

China's Statistical Office reported a 1% rise in consumer prices in July compared to prices that were in effect a year ago. In the previous month, inflation was 1.1%. Analysts predicted a slowdown in price growth in July to 0.8%. According to the results of seven months of this year, inflation in China amounted to 0.6% in annual terms. The cost of services increased by 1.6% last month. Prices for goods belonging to the non-food group rose by 2.1%. At the same time, food prices fell by 3.7%. The cost of health care and education services increased in July in annual terms by 0.4% and 2.7%, respectively. Transport and communications rose 6.9%. Housing prices rose 1.1%. Inflation in Chinese cities was 1.2%, in villages - 0.4%. The Statistical Office of the country also reported a rise in producer prices in July by 0.9%. In the previous month, inflation was recorded at the level of 8.8%. In 2020, inflation in China was below the official forecast. It amounted to 2.5% with the forecast of price growth by 3.5%. The government expects that this year will end with inflation of ...

From time to time, there are sharp ups and downs of quotations on the stock exchanges. When a panic begins, the rate of decline can go through the roof. To prevent trading from turning into chaos, each exchange has its own mechanismIn extreme cases, stock exchanges close trading in the middle of the day or even immediately after opening. How and why do trading platforms do this?Suspensions of trading give investors the opportunity to understand what is happening in the market, learn information and make decisions based on market conditions, said Stacy Cunningham, president of the New York Stock Exchange, in an interview with CNBC.How does the NYSE stop trading?According to the rules of the New York Stock Exchange, if the S&P 500 index falls by 7% from the closing price of the previous day (level 1), trading will be stopped for 15 minutes. If the decline continues after this break and the index falls by 13% (level 2) before 15: 25 New York time, the exchange will suspend trading again for 15 minutes. After 15: 25, a 20% drop is allowed (level 3). Exceeding this threshold leads to a trading stop until the end of the day.On March 9, 2020, after the key US indices fell by 7%, an automatic "fuse" was triggered immediately after the start of trading, and trading was stopped for 15 minutes. This helped to stop the further decline in quotations. When trading resumed, the main stock indexes managed to break away from their lows and stay above them.These rules were developed after an instant technical collapse on the New York Stock Exchange in May 2010 (Flash Crash). The exchange adopted the latest version of the rules in February 2013.The days when trading stopped. 7 most unexpected pauses on the stock exchangesIf trading in the company's shares is suspended, it does not mean that the shares have become useless or their value has fallen to zero. In such cases, the exchange temporarily blocks trading until it determines what happened and whether there is a threat to bona fide investors. Trading may be suspended for individual shares or for all securities registered on the exchange.Crisis-97: minus 7% in five hoursOn October 27, 1997, the Dow Jones index fell by 7.18% (554 points) in five hours. Emergency sales on the US stock market began immediately after the collapse of the Hong Kong Stock Exchange indices by 6% due to the financial crisis in Asia.After the index fell by 4.54%, the exchange suspended trading for the first time for half an hour to calm the panic among the participants. It didn't help. After the resumption of trading, the decline continued and exceeded 7%. This time, the exchange stopped trading completely: traders were sent home before the end of the day. This decline was the largest intraday drop for the US market in ten years."Enron": from princes in the mudIn the nineties and the beginning of the two thousandth, the Enron energy company was a giant of American business. It ranked seventh in the United States in terms of capitalization. At the maximum, Enron shares were worth $90.75 apiece.In 2001, the company was accused of falsifying data in reporting. After that, the quotes began to fall. On December 2, 2001, Enron declared bankruptcy — and the securities collapsed to $0.26.The New York Stock Exchange (NYSE) soon stopped trading in these shares. As a reason for the suspension, the regulator pointed to the share price below $1 per share, which violates NYSE standards.Read more: What is the New York Stock Exchange (NYSE)When the exchange turned off the lightsIn March 2009, the Sydney Stock Exchange stopped trading after a serious power outage. About 70 thousand houses and administrative buildings, including the stock exchange building, were left without electricity. Due to the lack of electricity, traffic lights were turned off and many kilometers of traffic jams were formed. Some residents were stuck in elevators for a long time.It is interesting that two days before the power outage, residents of the city took a voluntary part in the "Earth Hour — 2009" campaign. They turned off the lights in their own apartments for an hour. The campaign was held by the World Wildlife Fund (WWF) to draw attention to climate change in the world.Blind tradingIn August 2013, the NASDAQ stock exchange, specializing in securities of high-tech companies, suspended trading in shares for three hours. This was due to a technical failure: the exchange stopped receiving applications from trading participants and displaying data on changes in quotations. Trading resumed only 35 minutes before closing time.On this day, the share price of the American company NASDAQ OMX Group, which owns the NASDAQ exchange and eight other European exchanges in the Baltic region, fell by 3.4%. The three-hour suspension of trading due to technical problems was the longest in the history of this exchange.Read more: About NASDAQ Stock ExchangeNon-flying planes, non-purchased sharesIn July 2015, the New York Stock Exchange, where shares of the world's largest corporations are traded, stopped trading in all registered securities for three hours. This was due to a technical failure, and the exchange canceled outstanding applications for securities transactions.The New York Stock Exchange resumed work by the end of the day. On the same day, there was a technical failure in the system of one of the largest American air carriers, United Airlines. The airline canceled all flights.An hour and a half of silenceIn September 2015, the Moscow Exchange suspended operations on the stock, currency, money and futures markets. The exchange's website also stopped working. This was due to malfunctions in the network equipment of the Moscow Exchange in the M1 data center.The exchange's clients could not connect to the systems and place orders in the usual mode. The exchange was restored in an hour and a half.Read more: What are futures: types, features, advantages and risksThe shortest trades in historyIn 2016, one of the trading sessions on the Chinese stock market lasted less than 30 minutes and became the shortest in the history of the Chinese market. The stock market fell after the decision of the People's Bank of China to sharply lower the yuan against the dollar.The Shanghai Stock Exchange Index Shanghai Composite Index lost 7%, falling to 3116 points, the Shenzhen Stock Exchange index Shenzhen Component fell by 8.35%, to 10,746 points. The CSI 300 composite index of blue chips lost 7.2%. In accordance with the rules in force at that time, due to such a decline in the CSI 300 index, trading on Chinese stock exchanges was suspended until the end of the trading day.Read more: "Blue chips" of the US ...