Investment Learning

  • September 16, 2024

Australian Stock Market Hits Record High Amid Fed Rate Cut Expectations

According to Odaily, the Australian stock market reached a historic peak on Tuesday, driven by growing expectations of a significant interest rate cut by the U.S. Federal Reserve this week. The S&P/ASX 200 index rose by 0.3% to 8,148.8 points, surpassing the previous record of 8,148.7 points set on August 1. The CME's FedWatch tool indicates that 62% of market participants now anticipate a 50 basis point rate cut. Traders are also awaiting Australia's August employment report, due on Friday, to gauge the labor market's response to high interest rates. Since November 2023, the Reserve Bank of Australia has maintained interest rates at a 12-year high of 4.35%. Financial stocks, which are sensitive to interest rate changes, increased by 0.3%, with the Commonwealth Bank of Australia rising by 0.4%. Gold stocks continued their upward trend for the sixth consecutive day. Mining stocks saw a slight increase of 0.1%, with industry giants BHP Group and Rio Tinto gaining 0.3% and 0.7%, respectively. Technology stocks surged by up to 1%, reaching new record highs.

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  • September 16, 2024

Celsius Ex-CEO Faces Potential 115-Year Sentence

According to BlockBeats, former Celsius CEO Alex Mashinsky is facing a potential prison sentence of up to 115 years. Last Friday, Mashinsky's legal team submitted a memorandum to the New York District Court, requesting permission for six former Celsius employees, including the company's former Chief Financial Officer and Chief Revenue Officer, to testify in his criminal trial.In July 2023, Mashinsky was arrested on charges of defrauding customers and misleading them about Celsius's profitability. The U.S. Securities and Exchange Commission (SEC) accused Celsius and Mashinsky of raising billions of dollars through fraudulent and unregistered cryptocurrency sales and manipulating the price of the company's native token, CEL.Mashinsky's lawyers argued in the memorandum that, as CEO of Celsius, Mashinsky relied on information provided by his experienced professional team and had no intention of harming anyone. They emphasized, 'The government has informed the defense that its current position, according to sentencing guidelines, is that Mr. Mashinsky should be sentenced to 115 years in prison.'

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  • September 16, 2024

SEC Members to Testify Before House Financial Services Committee

According to Odaily, all five members of the U.S. Securities and Exchange Commission (SEC) are set to testify before the House Financial Services Committee next Tuesday. This marks the first time since 2019 that the entire SEC, not just the chairman, will appear together for testimony. Additionally, SEC Chairman Gary Gensler is scheduled to testify separately before the Senate on Wednesday.

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  • September 16, 2024

Dollar Expected to Rebound Amid Retail Sales Data and Fed Rate Decision

According to PANews, Barclays foreign exchange strategist Skylar Montgomery Koning has indicated that the dollar is poised for a rebound as traders have overestimated the extent of the Federal Reserve's rate cuts and underestimated the retail sales data set to be released on Tuesday. Koning predicts that stronger-than-expected retail sales will shift market bets towards smaller rate cuts, thereby boosting the dollar. With only two days remaining until the Federal Reserve's rate decision, trader uncertainty is at its highest level since 2007. This consumer report is one of the last pieces of information before the rate announcement.Barclays anticipates that the Federal Reserve will implement three 25-basis-point rate cuts this year, citing the continued strength of the U.S. economy. Montgomery Koning noted that the market tends to overreact to rate cut expectations. She stated, 'During those soft landing periods, if you look at historical data, the market always overestimates the extent of the Federal Reserve's rate cuts. When expectations shift, the dollar tends to rebound.'

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