Good morning, here is a rundown of the key news updates from around the world.
Denmark and Greenland to sign security agreement with the US
According to the Xinhua News Agency, the Danish Prime Minister's Office announced on the 21st that Denmark, along with its autonomous territory of Greenland, and the United States will sign a security agreement in New York on the 22nd, aimed at enhancing security in the Arctic and North Atlantic regions. As detailed in the press release from the Prime Minister's Office, Danish Prime Minister Mette Frederiksen, Greenland's Premier Jens-Frederik Nielsen, and US President Donald Trump will jointly sign the agreement during a ceremony scheduled for 10:30 AM local time at the United Nations headquarters in New York. The specific terms of the agreement have not been disclosed. On the 18th, Trump stated on social media that the US had reached an agreement with Denmark and Greenland that grants America permanent control over Greenland's security and other needs. Frederiksen responded the same day, emphasizing that the agreement acknowledges the sovereignty and territorial integrity of the Kingdom of Denmark as well as the right to self-determination for the people of Greenland.
IOM reports nearly 130,000 displaced in Yemen
Citing the International Organization for Migration, nearly 130,000 people have been displaced across seven governorates in Yemen within just a few weeks due to the deteriorating security situation, with many experiencing multiple displacements. Osman Belbeisi, the IOM's Regional Director for the Middle East and North Africa, noted the escalating numbers, stating that over 118,000 displacements were recorded on September 18th, a figure that increased by 11,352 just three days later. According to the latest IOM data released on the same day, Taiz governorate hosts the largest number of displaced individuals at 73,494, followed by Lahij governorate with 33,828. Additionally, as of the evening of September 20th, 3,106 people had crossed the Red Sea from Yemen to reach Djibouti. The situation has been exacerbated recently by Yemen's Houthi group intensifying its offensive against the government forces and announcing a maritime blockade against Saudi Arabia for supporting the Yemeni government. The conflict between the Houthis and Saudi Arabia continues to escalate, with both sides launching missile and drone attacks against each other.
Israeli military retaliates after attack near the "Yellow Line"
In a statement released on the evening of the 21st, the Israel Defense Forces reported that an engineering vehicle was hit by an explosive device near the "Yellow Line" area during a routine mission earlier that day, resulting in no casualties. In response, the IDF conducted strikes on military infrastructure belonging to the Palestinian Islamic Resistance Movement, or Hamas. The statement strongly condemned the incident, characterizing the attack as a blatant violation of the ceasefire agreement, and attributed it to Hamas. As a measure of retaliation, the IDF targeted certain Hamas facilities that it claims were used to plan and execute attacks against Israelis and Israeli troops. The IDF emphasized that its forces remain deployed in the area in accordance with the ceasefire agreement and will continue operations to eliminate any imminent threats. There has been no immediate response from Hamas regarding this incident. The "Yellow Line" was established under the first phase of the Gaza ceasefire agreement, with the IDF controlling areas to its east, roughly 53% of the Gaza Strip, while Hamas holds areas to the west where Israeli forces do not remain or operate. Since the ceasefire came into effect, however, the IDF has been expanding its zone of control, currently overseeing more than 60% of Gaza's territory.
EU proposes extending sanctions against Russia
According to CCTV News, on the 21st, ambassadors from all 27 EU member states held extensive discussions in preparation to extend sanctions against more than 3,000 Russian individuals and entities for a period of 36 months, while also removing two Russian entrepreneurs from the sanctions list. EU diplomats revealed that the package was sent to member state governments that evening for written approval, with further consultations scheduled for the morning of the 22nd in Brussels. The proposed extension period is notably longer than previous renewals, which typically lasted six or twelve months. The EU aims to avoid future deadlock over sanction renewals caused by divergent member state positions. On July 23rd, European Commission President Ursula von der Leyen announced that the 21st round of sanctions against Russia would add 32 Russian banks to the transaction ban list, target crypto-asset companies and oil trading platforms, and suspend the price cap mechanism for Russian oil for one year to prevent Russia from benefiting from volatile international oil prices. In response, the Russian Foreign Ministry reported on September 18th that Russia has expanded its list of European individuals barred from entering the country, in reaction to the EU's 21st sanction package adopted on July 23rd.
Cryptocurrency markets surge higher
The cryptocurrency market continued its upward trend, supported by falling oil prices and a return of risk appetite. As of press time, Bitcoin's dollar index rose 6.48%, Ethereum's dollar index gained 4.96%, and Ripple's dollar index jumped 10.34%. Bitcoin's dollar index broke through the $85,000 level, marking its highest point since the end of January. According to CoinGlass, over 140,000 traders were liquidated in the cryptocurrency market over the past 24 hours.
How will A-shares perform before the long holiday?
On September 21st, the A-share market continued its recovery, with all four major indices closing higher and total market turnover exceeding the 2 trillion yuan threshold for a second consecutive day, indicating strong market resilience. "Recently, the sentiment repair has been notable, mainly due to some positive signals from China and the US regarding trade and technology, alongside the realization of expectations on US interest rate cuts. From a funding perspective, domestic open market liquidity injections have increased significantly ahead of the long holiday, ETF funds saw inflows during the pullback, and margin financing funds also slightly returned. The marginal improvement in financial conditions has led to a slight increase in market trading volume," said Pu Zulin, Chief Macro Analyst at Zhengxin Futures. However, Li Bing, head of investment research at China International Futures, cautioned that the short-term performance is insufficient to confirm a comprehensive rebound in capital inflows, and continuous observation is necessary.
Data over the past week reveals that the STAR Composite Index surged 7.67%, the STAR 50 Index climbed 6.70%, and the CSI 2000 Index rose 5.95%. Hard technology sectors such as semiconductors and optical modules have been the core drivers of this market rebound. Pu Zulin believes this reflects a "K-shaped" market divergence: on one hand, the technology sector is showing strong earnings, and with improved financial conditions, it has bounced back first, benefiting from liquidity. On the other hand, against the backdrop of deepening anti-involution policies and proactive fiscal measures, commodity prices continue to rise, providing a solid earnings foundation for resources and cyclical sectors. In the absence of significant new macro catalysts, these sectors are likely to sustain their upward trend.
"The leading sectors have shifted back to semiconductors, optical modules, and innovative drugs, primarily because their earlier declines have made valuations an advantage. For example, the chip ETF has experienced a maximum drawdown of 40% since July, making it one of the most beaten-down thematic ETFs. Moreover, looking at semi-annual and third-quarter earnings expectations, the technology sector's performance remains solid, which highlights the valuation advantages of quality stocks within the sector," Li Bing added. However, Li Bing cautioned that the technology sector's rebound has lasted only four trading days and has not yet broken through the annual moving average resistance. This rebound can only be defined for now as a stabilization following the Federal Reserve's rate cut, and it has yet to form a new trend-driven rally. Pu Zulin also warned that there are currently more negative factors in the macro environment. For instance, major overseas central banks are entering rate-cutting cycles, which creates short-term liquidity tightness; some technology companies have high valuations, and a killer application has yet to emerge. Pu Zulin believes that with broadly loose domestic liquidity, continued support from stable funds, and ongoing improvements in the profitability of pro-cyclical sectors, market rotation is likely to occur. The risk of a deep decline in major indices is low, and the market is expected to maintain high-level fluctuations. From a technical perspective, Li Bing noted that although the market has not yet fully established a bullish trend, considering the timing and valuations, the probability of A-shares strengthening in the fourth quarter is high.