Cryptos and Stocks Surge Amid Rate Cut Speculation
With U.S. interest rate cuts almost certain, global markets see a risk-on sentiment. Cryptocurrencies like bitcoin and ether are rising, buoyed by the prospect of lower rates and favorable regulations. Asian stocks slow after recent highs, while investors await key economic data and central bank signals.
In a clear sign of risk-on sentiment, global markets are soaring as the likelihood of U.S. interest rate cuts grows stronger. Cryptocurrencies, notably bitcoin and ether, ride the wave of optimism, reaching historic peaks. As the dollar weakens, investor confidence builds, luring institutional investments.
Asian markets, however, paused after a rapid ascent, with Japanese shares slightly declining from record highs. The tech-heavy markets of Taiwan and South Korea are also cooling down. Market participants anticipate that the Federal Reserve will embark on rate cuts next month, fueled by a pivotal statement from Treasury Secretary Scott Bessent.
As Bessent predicts a potential rate reduction, global focus turns to upcoming economic indicators from the Euro zone and the UK. These figures will offer insights into the global economic climate, affected by trade duties and inflationary pressures. Key market activities to watch include GDP releases and central bank guidance.
(With inputs from agencies.)
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