Following the Fed announcement on Wednesday, the US equity market corrected leading to a similar drop in crypto assets. Bitcoin dropped 2% and Ether by 6% in the last 24 hours.
The Volmex Implied Volatility index, or the VIV will measure the constant 30-day forward projection of the volatility in the Bitcoin and Ether options market while using the real-time crypto call and put options.
As the Japanese yen plunges to its weakest level since 1998, analysts ponder on how best to address this and other macroeconomic issues.
With interest rates set to be hiked following this growing inflation figure, the US market is waking up with a bearish reaction to the news.
Declining inflation will compel the Fed to pause interest rate hikes, and induce a market rally, a Credit Suisse analyst predicts.
Ahead of the September meeting of the Federal Open Market Committee (FOMC), the recently released job data will come in handy as one of the determinants of how aggressive the Fed will be in hiking interest rates.
The rate hike plans in the United States also complement an approach that European Central Bank (ECB) board member, Isabel Schnabel believes will be ideal for the region.
The European markets reacted as the Fed chair cautioned of “some pain” ahead in order to tackle inflation.
In the Euro area, the inflation figures for the month of July were pegged at 8.9 percent in July 2022, up from 8.6 percent in June 2022 and 8.1 percent in May 2022.
Stock futures remained largely unchanged even as investors await the July inflation report, which could affect September’s hike in interest rates.
US Treasury yields for 2, 10, and 30 years were all trading higher on August 1 as investors brace for more earnings reports and economic data.
Following the ECB’s rates hike last week, European markets might move depending on reports from corporate earnings and a new US Fed policy.
The Dow saw a pullback of more than 200 points pullback during late-day trading as Apple plans to slow hiring and growth spending in 2023.
The stock futures tied to all three major indexes advanced after Goldman Sachs’ latest earnings report came in better than expected.
Analysts opine that expected earnings reports could impact investors’ reaction to the stock market after last week’s volatility.