2026-01-20 05:32:20

Yesterday, a single word dominated the headlines—Greenland. This US-Europe trade turmoil directly impacted global stock markets, with Europe bearing the brunt.

The situation on the European side is quite grim. The Stoxx Europe 600 index plunged by 1.72%, with Germany, France, and Italy falling by 1.34%, 1.78%, and 1.32% respectively. The most outrageous was Denmark's stock market, which dropped by 2.73%. Since the US stock market was closed for Martin Luther King Jr. Day, Europe was left to bear the pressure alone.

The Asia-Pacific markets also felt the impact. Japan's stock market opened lower and has been oscillating near the bottom, with a decline close to 1%; South Korea barely managed to stabilize after a dip, mainly supported by the storage chip sector; Australia fell about 0.6% in the morning; the A50 futures index was even more volatile, declining for six consecutive days, and was down 0.5% at midday.

The A-shares and Hong Kong stocks were not spared either. The Hang Seng Index opened with a sharp drop, falling 0.74% during the session before gradually stabilizing. The Shanghai Composite Index rose by 0.35% at 9:36 AM but quickly plunged, with a deep decline of 0.82%. It then oscillated and recovered, narrowing the loss to 0.3% at midday, and closed at 4,101 points.

Interestingly, the reason the A-shares index didn't continue to decline further mainly lies in the support from state-owned enterprises' low-valuation weighted assets. In contrast, previously strong technology stocks were less fortunate, showing clear pressure. The Shenzhen Component Index and the STAR Market 50 Index both fell by 1.22%, with the ChiNext Index dropping even more, by 1.83%. The early trading volume on both markets was 1.85 trillion yuan, an increase of 56.8 billion yuan compared to Monday morning, indicating some funds in the tech sector were actively selling.

But this understanding is correct—the decline this time is essentially a shakeout. The market had already gained quite a bit earlier, and combined with signals of regulatory cooling, the US-Europe trade war is just an emotional disturbance, posing no substantial pressure on the domestic fundamentals. The medium-term upward trend remains unchanged. Moreover, the Ministry of Finance will hold a press conference this afternoon, and positive policy signals could further stabilize market expectations.

From this perspective, today's sharp pullback mainly affected the tech sector, especially AI applications. The industry logic here is clear, and the rally is far from over. At critical moments and key levels, dips can be seen as opportunities for low-cost entry. Judging from both time and space dimensions, this spring rally is still only halfway through.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

14 Likes

Reward
14
3
Repost
Share

Comment

0/400

GasFeeTherapist

· 01-20 06:02

The Greenland issue is really outrageous, Europe directly caught in the crossfire. This round of shakeout is an opportunity, the tech sector is just right for bottom-fishing. State-owned enterprises are truly indispensable for stabilizing the market, luckily we have these big players. AI is still in its early days, spring has just begun, don't panic. The ChiNext index dropped to 1.83%, I'm thinking about jumping in. The US and Europe are fighting, we just watch the show and pick up the bargains, that's it.

View OriginalReply0

BearMarketSurvivor

· 01-20 05:56

The recent emotional shockwave in Greenland is, frankly, just a cover. Looking at the decline in Europe, Denmark's 2.73% drop is not small, but the key point is—US stocks haven't opened yet, and Europe is being hammered alone. Such a unilateral market is most prone to creating panic illusions; it's an old trick. I understand the logic of state-owned enterprises supporting the market, but the selling in the tech sector is the real signal. The 56.8 billion in volume against 1.85 trillion looks insignificant proportionally, but the question is—who is selling? Are institutions or retail investors' emotions collapsing? This needs to be clarified; otherwise, "buying the dip" becomes gambling. I reserve judgment on the idea of a shakeout. The logic behind AI applications is clear, but a clear industry logic ≠ market still has room to run. Historically, many sectors with "clear logic" have ended up as graveyards for bagholders. Position management takes priority over predicting the direction—that's my trading discipline. The Ministry of Finance's press conference might stabilize expectations, but stable expectations don't necessarily mean supply lines are coming in. It all depends on trading volume.

View OriginalReply0

BuyHighSellLow

· 01-20 05:53

Greenland really is incredible. One place name caused the global stock markets to tumble... Europe is really suffering, Denmark dropped directly to 2.73%. Tech stocks were hammered again; this round of shakeout is indeed fierce. State-owned enterprise support is unreliable; the Sci-Tech Innovation Board is where blood flows like a river. Can the Ministry of Finance's press conference this afternoon save the market? Or will it continue to fluctuate while waiting for policies to be implemented? Spring market rally is just the middle? Sounds like another round of chopping the leeks... Buying on dips sounds easy, but who knows where the bottom is? The trade war involving Greenland is even more frightening than the decline in A-shares; we should be thankful it only fell 0.82%. This adjustment is called a shakeout, but it’s really just a sell-off... Tech stocks really can't hold up.

View OriginalReply0