Ipek Ozkardeskaya
Swissquote Bank Ltd
US inflation advanced to 6.2% in October. That’s the highest level since more than three decades. More worryingly, it looks less and less transitory.
The jump in US inflation, and the yields soured the mood in the equity markets. Nasdaq of course paid the highest price among the three major US indices. But overall, compared to the inflation shock, it’s not a dramatic decline. And activity in US equity futures was positive in Asia, Nasdaq futures are up 0.22% at time of writing, hinting that the moodiness in the market will likely be transitory, unlike inflation…
Goldman advises to buy the USD 5-year 5-year breakevens on a bet that inflation would accelerate, and that the Fed would do nothing dramatic to tame the inflationary pressures, but people actually prefer rushing to Bitcoin, as a new-age inflation hedge. As such, Bitcoin hit a fresh record yesterday, before easing.
I am not saying that Bitcoin is not a good inflation hedge, I am saying that we don’t have enough data in hand that proves that it is. So why are people rushing to Bitcoin?
Despite a limited risk appetite, Rivian made a great debut in Nasdaq. The company sold 156 cars so far and is public since a day only, but it is already worth more than GM and Ford. Why?!
This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
Recommended Content
Editors’ Picks
AUD/USD stands firm above 0.6500 with markets bracing for Aussie PPI, US inflation
The Aussie Dollar begins Friday’s Asian session on the right foot against the Greenback after posting gains of 0.33% on Thursday. The AUD/USD advance was sponsored by a United States report showing the economy is growing below estimates while inflation picked up. The pair traded at 0.6518.
EUR/USD mired near 1.0730 after choppy Thursday market session
EUR/USD whipsawed somewhat on Thursday, and the pair is heading into Friday's early session near 1.0730 after a back-and-forth session and complicated US data that vexed rate cut hopes.
Gold soars as US economic woes and inflation fears grip investors
Gold prices advanced modestly during Thursday’s North American session, gaining more than 0.5% following the release of crucial economic data from the United States. GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the US Fed could lower borrowing costs.
Ethereum could remain inside key range as Consensys sues SEC over ETH security status
Ethereum appears to have returned to its consolidating move on Thursday, canceling rally expectations. This comes after Consensys filed a lawsuit against the US SEC and insider sources informing Reuters of the unlikelihood of a spot ETH ETF approval in May.
Bank of Japan expected to keep interest rates on hold after landmark hike
The Bank of Japan is set to leave its short-term rate target unchanged in the range between 0% and 0.1% on Friday, following the conclusion of its two-day monetary policy review meeting for April. The BoJ will announce its decision on Friday at around 3:00 GMT.