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Weekly Review: The Global market has shown resilience and signs of recovery in the festive atmosphere.
This week, the global market has shown resilience and signs of recovery amidst a holiday atmosphere. Economic data from the USA has boosted corporate confidence, leading to a rebound in US stocks; Japan's inflation data supports expectations for interest rate hikes, with Japanese stocks breaking through a 35-year historical high; the decline in profits for industrial enterprises in China has narrowed, with the effects of policy gradually becoming apparent, and there has been a notable rise in A-shares. The data from major global economies has improved, and clear signs of market recovery are emerging as the year comes to a close.
Who will be the first to implement the expectations of a reserve requirement ratio cut and interest rate reduction? Industry predictions suggest that the likelihood of a reserve requirement ratio cut by the end of the year is high, while the interest rate
① Currently, it has entered the observation period for policy effects, and the signals for reserve requirement ratio and interest rate cuts are unclear. The probability of an interest rate cut this week is low, but the likelihood of a reserve requirement cut before the end of the year is higher, and the interest rate cut may have to wait until 2025 for a suitable opportunity; ② A domestic interest rate cut may further increase short-term Exchange Rates pressure, and the probability of a short-term reserve requirement cut is greater than that of an interest rate cut. Recently, the Renminbi's exchange rate against the US dollar has declined, reflecting more of a passive depreciation nature.
The degree of change is shocking! The Federal Reserve may have entered a "new phase."
Some economists believe that the "culprit" behind the global financial market crash on Thursday may still be Trump...
The risk aversion sentiment on Wall Street has surged! What kind of "poison" has the Federal Reserve cast into the market?
① Apart from the US dollar, everything in sight—US stocks, US bonds, Gold, and Bitcoin all plummeted yesterday; ② This "indiscriminate" sell-off in the market reflects investors' extreme fear of the Federal Reserve's decision last night.
The Federal Reserve's "expectations management" severely impacts rate cut expectations, with US Treasury yields and the dollar entering a "bull run mode."
The Federal Reserve gives traders reason to expect only one rate cut in 2025, yields on U.S. Treasury bonds soar violently across all maturities, and the USD rises to its highest point since 2022.
Trump Presidency Likely to Extend Dollar Strength -- Market Talk