MTL - The Son of Finance of the Great Age-Chapter 931 fifth hit

  Chapter 931 The Fifth Blow

  Swiss central bank's statement was like timely rain, which calmed down the speculative funds that were turmoil in Europe. The vast majority of them choose to sign exchange rate forward contracts with brokers, and then continue to operate the funds on hand in the European capital market to maximize profits.

   Some of the funds also endured the pain of cutting their flesh, and chose to convert them into US dollars and left the market directly. Naturally, these funds are few and far between.

  Naturally, all of this is in Zhong Shi's calculations, and at this moment the greedy side of human nature is clearly visible.

  If they can still stop their desires at this time, then they won't suffer even more losses in the next month. But few people can overcome this shortcoming of human nature, so what greets them is only a greater tragedy.

  One month later, the Swiss National Bank officially announced that it would cancel the exchange rate floor of EUR/CHF 1.20 and lower the interest rate to minus 0.75%.

  It means: the Swiss central bank will no longer cover the hot money exchange rate in the market, and will no longer protect the Swiss import and export industry!

  The black swan incident broke out, and the promises made by politicians are no longer valid!

   At this point, Zhongshi's overall plan has completely surfaced: First, stir up the situation in the whole of Europe, so that speculative funds from all over the world will swarm into Europe. Then use the European QE to hit the speculative funds hard once, and when they still refuse to stop, use the Swiss franc to make up the last knife.

   Two consecutive heavy blows, no matter how safe the funds are, it may be unbearable.

As soon as the news of the Swiss National Bank was announced, it immediately caused violent fluctuations in the global market: first, the exchange rate from Swiss francs to euros was changed from 1.2 Swiss francs to 1 euro within one minute to 1.14 Swiss francs to 1 euro. The violent fluctuations triggered a large number of liquidation orders, orders to stop the decline were continuously sent to brokers, and a huge number of sell orders flooded the entire market. But they found sadly that no matter what price they set the stop loss position, the result at this moment is that the market has no opponents and the liquidity is extremely lacking.

   Two minutes later, the price of EUR/CHF drops to 1, that is, 1 EUR is exchanged for 1 CHF. The Swiss franc appreciated wildly, exceeding 16.67% in just two minutes.

  Five minutes later, the exchange rate of Swiss francs to euros rose to 0.8, that is, 0.8 Swiss francs to 1 euro, which skyrocketed by 33.33% within five minutes. This kind of fluctuation is very rare in the entire world currency history.

But all this is still not over, the Swiss franc is still skyrocketing crazily, because stop loss orders are frequently issued, and the operation of the program cannot be stopped like an avalanche. In the end, it was not until after a huge increase of 41%, that the Swiss franc was rushing to grab the rebounding funds. Into the bottom stopped the pace of rising.

In this short period of five minutes, there were no sellers of Swiss francs in the market, only buyers were continuously placing orders to buy, but unfortunately, after searching the entire market around the world, they could not buy a penny of Swiss francs. swiss francs.

A heaven, a hell.

  Brokers such as Alpari, Aifos, FXPRO, GlobalBrokers NZ Ltd in the UK went bankrupt within five minutes. Their huge positions directly led to liquidation, and the money owed could no longer be repaid with the company's assets, so they declared bankruptcy one after another in the next few days.

   Not only them, many large institutions including Barclays Bank and Deutsche Bank also lost hundreds of millions of dollars in assets within a few minutes.

  The riots in the Swiss franc are not only affecting these two currencies, but also the exchange rate of the euro against the dollar. While the Swiss franc soared, the euro against the dollar also drew a long negative line, directly breaking through the 1.16 mark. From 1.4 before QE to 1.16 now, the euro has fallen by more than 17%.

   But this is not everything in the capital market. In those minutes, U.S. Treasury and gold futures surged, as did German interest rate futures. On the one hand, while the market is frantically buying the Swiss franc, it is also frantically looking for a safe-haven exit. Because Switzerland is very closely related to gold, and gold futures are one of the most important assets for hedging, the price of gold rose by as much as $10 within 20 minutes, and $28 all day. On the second day, it jumped directly to the level of 1278 US dollars per ounce.

  Swiss stock indexes are falling, European stock indexes are falling, European bond yields are falling, the U.S. dollar is rising, and gold futures are rising... The decision of the Swiss central bank has involved changes in most markets.

  During the subsequent trading hours, the Swiss franc began to adjust slowly, and many institutions began to sell the Swiss franc on hand, because the 40% increase was really beneficial to them, and soon the exchange rate of the Swiss franc against the euro began to fall. But even so, the Swiss franc ended up gaining more than 20% against the euro on one day, and more than 5% on the second day.

   All of this has almost met with a catastrophe for the speculative funds in the euro.

  First of all, the forward contract. The contract that has skyrocketed by more than 20% almost means that it is impossible for them to fulfill the contract from the broker. Maybe the broker has gone bankrupt. The second is those funds that set stop loss orders. Although they have already taken precautions, it is impossible for them to find opponents' orders under extreme market conditions. They can only watch the Swiss franc skyrocket. The final result means that They have to pay a premium of at least 20% for Swiss francs, which is hardly acceptable.

  The path of the Swiss franc is completely dead, and the exchange rate of the euro against the US dollar is also close to 20%, which means that no matter how much they earn in the interest rate market, they will completely lose it, and they will lose more. Because if the position is not closed now, the downward trend of the euro against the dollar will still have no end, which means that subsequent losses will increase.

  According to subsequent statistics, in this wave of market conditions, speculative funds have left at least 80 billion euros in costs in Europe, and this does not include the OTC market.

  Many hedge funds were liquidated one after another after the fact. They originally ambitiously wanted to make a big profit in Europe, but they caused huge losses afterwards, so that the fund could no longer maintain it.

  This includes well-known hedge funds such as Everest Capital and Odey Capital.

  The weirdest thing is that even if these hedge funds are completely finished, none of them attribute this matter to Zhongshi, but think that this is a complete "black swan" event.

  After these continuous fluctuations, hedge funds have completely lost interest in Europe. Of course, there are also reasons for their incompetence. Since then, Europe has finally won a precious respite, and there is no such thing as a "bond crisis" anymore.

   "Happy cooperation!"

  After the last phone call with the female prime minister, Zhong Shi put down the microphone with a sigh of relief, with a relaxed expression on his face. He finally completed his cooperation with the European government.

   Ivana on the side looked at him with a complex expression, stood up suddenly, waved at him and Jiang Shan chicly, and walked away.

   "This... this is leaving?"

  Jiang Shan was dumbfounded, stood up hastily, and wanted to say something, but couldn't say anything for a while, so he could only stomp his feet in a hurry.

  Although he said that he coveted Ivanna, after getting along during this period of time, he has developed some friendship as a colleague. Seeing Ivana leave without even saying hello, at this moment, he was in a state of confusion, and kept looking at Zhongshi, hoping that he could say something.

   "Forget it, let her go!"

Although Zhong Shi was quite surprised in his heart, he was not as nostalgic and reluctant as Jiang Shan. He just glanced at Ivana's back and said calmly, "That's all right, there are not many people around us. There will no longer be someone watching all the time."

   Regarding Ivana, Zhong Shi didn't have any unreasonable ideas. But when she appeared, Zhong Shi felt uncomfortable all over, which was determined by his unconstrained personality. Ivana seemed to know this well, so she couldn't wait to leave at this time.

"Ugh…"

  Finally, Jiang Shan sighed, and chose to remain silent, instead of making unnecessary attempts to keep her.

   "By the way, here is a kind of charity dinner held by the Hong Kong government. You should have made a lot of money recently. It's time to consider donating to the society!"

After groping around on the desk for a while, Zhong Shi suddenly found a charity dinner that was to be held tonight, and immediately moved in his heart, picked up the invitation card and teased Jiang Shan, "I heard that there are so many beautiful women at this kind of dinner, you should go Take a look and distract yourself. Maybe you will forget about Ivana tonight."

"Not interested in!"

  Jiang Shan pursed his lips, looking lacking in interest, but soon his eyes lit up, he stood up and grabbed the invitation card from Zhong Shi's hand, looked at it carefully for a while, and suddenly a smile appeared on his face.

"What's wrong?"

  Zhong Shi asked curiously, "Why did you change your mind?"

   "Hehehe, Miss Luo Xiner will attend this dinner party, I must go and see it!"

Jiang Shan smiled, pointed to the name on the invitation card and said, "This is my goddess, how can there be no place where there is a goddess? Hehe, I would like to thank you this time, without you, I still don't know how to meet Where is my goddess!"

   "What does she do?"

  Looking at Jiangshan’s brother Zhu, Zhong Shi couldn’t help being amused, and was aroused a little curiosity, “Is it a celebrity or a celebrity? Why haven’t I heard of it?”

   "Your level is too high, how could such a star fall into your eyes?"

Jiang Shan shook his head helplessly, "Miss Luo Xiner is the hottest female celebrity right now, she won the title of Best Actress of the Academy Awards with the movie "Women Should Be Self-Reliant", and she is the youngest and most beautiful woman to win this award One. Now her popularity has spread all over Asia, and it is said that she will enter Hollywood in the near future!"

   "It's just a star, is it worth it?"

  Zhong Shi was a little disdainful, "It's not that you don't know what the entertainment industry is like. Can someone be alone in such a big dye tank? How childish!"

  Jiang Shan has completely lost the appearance of a financial elite, and has completely turned into a brain-dead groupie. Zhong Shi feels both angry and funny when he sees it.

   "No, no, no, this woman is completely different from other female stars!"

Hearing that Zhong Shi slandered the "goddess" in his heart, Jiang Shan immediately became impatient, and hurriedly argued, "This Luo Xiner is really different from other female stars. You must know that she grew up in a housing estate and her family was poor, but She is very ambitious. She entered the University of Hong Kong as the top 10% in Hong Kong. If she hadn’t taken care of her family, she could have gone to study in the UK with her grades. After graduation, her first job was as an assistant in a law firm. When I was shopping, I was discovered by a scout, and I tried to act in the debut work "Women Should Be Self-Reliant", and it became a hit. It is said that the second son Li is pursuing her now, do you think you can let others get involved?"

"yes?"

  Zhong Shi glanced at Jiang Shan suspiciously, but he didn't think too much, but when he heard the name "Second Master Li", his heart suddenly moved, and he said, "I'm going to this charity party!"

   "Aren't you not interested?"

  Jiang Shan was a little anxious at this time, "Could it be that you are also doing it for Luo Xiner? No, didn't you just not be interested?"

   "Don't worry, this card can bring people in!"

   Regarding Jiang Shan's reaction, Zhong Shi was speechless.

   Thank you book friends, don’t ask me to vote for your monthly ticket! Thank you book friend Suifeng 12321 for your reward! I am very happy to see everyone's enthusiastic support, and the collection has grown again. The author is very grateful and moved. I hope that more book lovers can pay attention to this book. Friends who like this book can recommend more, thank you very much~

  (end of this chapter)