Introduction

During the National Day holiday, the global financial market was in turmoil. The U.S. stock index broke through 3,100 points and almost ran all the way down to around 2,900 points. The war in the Middle East seems to be about to ignite a bonfire, which could burn out the whole world at any time. The Federal Reserve's policy shift this time has made investors worried. They just decided to cut interest rates last month, but this time they have temporarily suspended further interest rate cuts, which is puzzling.

In the A-share market, it has also been a period of great confusion. The Shanghai Composite Index has also broken through 3,000 points and suddenly fell to around 2,892 points. Under such circumstances, will the A-share market return to the golden pit of 2,500 points again?

Can the central bank's intervention save the A-share market? In 2008, the A-share market created a huge stock disaster. The Shanghai Composite Index eventually fell from a high of 6,000 points to the lowest point of 1,100 points.

The A-share market has also been sliding. In the past adjustments and practices, the A-share market has been very stable step by step. Moreover, in this process, the central bank has also been very strong in financial crisis events.

The central bank is also very strong this time, forcing the reduction of capital interest rates and other policies to come out frequently, resolutely intervening in the market. Moreover, the central bank injected 300 billion liquidity into the market at the first time.

Such measures immediately stabilized the market, allowing the A-share market to recover its former stability, and once again demonstrated the resilience and vitality of the A-share market.The central bank has been decisive and strong in intervening in the market during past external risk shocks, preventing the market from being affected by external impacts.

In the fluctuations of the financial market, it has also demonstrated the resilience and potential of the A-share market. Under many external shock events, A-shares either remain flat or experience minor fluctuations, but do not follow significant fluctuations, once again highlighting the strength of the A-share market.

In this process, A-shares have also continuously damaged the confidence of stock investors. Just as a warrior feels pain when cut by a blade, the stock market is the same. Whenever investors lose money and earn, they feel pain, which also leads to a fearful mentality among investors.

Therefore, the central bank's intervention is also to better maintain the stability of the A-share market and protect the interests of stock investors under these circumstances.

However, in today's society, the central bank's intervention cannot replace the market, especially in the A-share market. Although it has gone through many hardships and can draw stock market experience, it cannot always rely on the central bank.

Because excessive dependence will make the A-share market fundamentally unable to solve problems, it can only catch up with time to patch, relieve pain when it hurts, and can only alleviate the urgency for a while, fundamentally unable to solve the problem.

From a broader perspective, the central bank's intervention to cope with the current fluctuations in the A-share market is a relatively reasonable approach, but in terms of market mechanisms, the central bank cannot play a leading role.

It cannot make all decisions, and timely intervention in the market can restore the market to its former state; otherwise, blindly dominating the market is not conducive to the formation of market mechanisms and exacerbates excessive market intervention.

The Federal Reserve's pause in interest rate cuts has caused global stock market turmoil.

The US Federal Reserve has always been led by a hawkish stance and Powell, advocating caution and restraint to protect President Trump from suffering a failed economic recession.Long before Trump's tenure, he had been demanding that the Federal Reserve lower interest rates. However, the Fed had been reluctant to act, fearing an uncontrolled growth trend in the United States.

But in June of this year, in order to stabilize the U.S. stock market, the Fed finally made a decision to cut interest rates, with a very small reduction of only 25 basis points.

In August, global stock indices were also not very optimistic. Coupled with August being a traditional off-season for the stock market, there were many messages circulating, including a lot of false information, which increased market risks.

The non-farm employment data was also not very encouraging, not to mention the reduction in manufacturing employment, which can only reflect the sluggishness of a country's economy.

The reduction in manufacturing employment is expected to decrease by 200,000 year-on-year, which is also the largest since 2009. The U.S. stock market was very anxious in August, which also led Powell to start easing policies.

It was in September when the increase in non-farm employment in the United States was only 147,000, and it was a new low for the second half of the year. Even before Powell's rate cut, it was believed that although the United States is facing a downward trend in economic growth, it will not deteriorate rapidly, so the power to cut interest rates has always been maintained.

However, in September, things changed. The number of employed people in the U.S. service industry also began to decrease, and the decline was relatively large. Let's see if this interest rate cut can become Powell's regret.

In October, the U.S. Federal Reserve, the International Monetary Fund, and several other institutions lowered their expectations for U.S. economic growth, which also had a negative impact on global economic growth expectations.

In the Middle East, the escalating conflicts bring not only regional turmoil but also affect the world. Overcoming the contradictions between Iraq and Iran, which were like two smoking guns, the world ushered in a peaceful development.

However, in Bolton's internal introduction announcement, everyone saw that this announcement was filled with thick smoke and fog, which inevitably gave people an ominous premonition, that is, U.S. President Trump is going to make trouble again.Bolton stated in an internal announcement that Iraq's next target is Iran, and discussed the United States' stance, indicating that it will not remain neutral. At a Pentagon press conference, it was announced that 5,400 soldiers are stationed in Iraq, but the internal announcement also mentioned retaliation against Iran. Furthermore, Iran's supreme leader made remarks about assassinating the President of the United States, which alarmed the U.S. National Security Agency and was met with great indignation. They were also willing to pay thirty million dollars for the assassination of Trump, leading the United States to search globally for the contractor, which has shaken the world. This has also prompted anti-war activists within the United States to take action, as once the flames of war spread, the disaster faced by the Iranian people would be severe, perhaps irrecoverable, and even the U.S. economy would be affected. The flames of war unleashed by the United States could ignite a global conflagration, which is why the global stock market is unstable under these circumstances. President Trump of the United States cares even less; he only pursues American interests and his own interests, so he is the one who instigated the conflict, and everyone is in this uncontrollable environment. In conclusion, central banks can timely intervene to help the market return to stability, but they should not rely solely on central banks. It is necessary to allow the market to develop mechanisms and change the distorted state of the A-share market. Changes in Federal Reserve policy have also sent a signal to the world: if the United States begins to lower interest rates, the U.S. economy will deteriorate rapidly, causing a global economic downturn and having a significant impact on the global financial market.Therefore, investors at this time must always pay attention to the global market trends, control risks, and formulate investment strategies reasonably.

Although the market fluctuations in A shares have caused discomfort to many stock investors, they must not blindly follow the trend. They need to remain calm. Those who are at the forefront are the first row, "True warriors are invincible."