Investors increasingly expect a soft landing ahead of the Fed's crucial decision
Investors' confidence in a soft landing is growing as markets eye the first interest rate cut from the Federal Reserve since 2020.
Investors' confidence in a soft landing is growing as markets eye the first interest rate cut from the Federal Reserve since 2020.
According to Odaily, ANZ economist Bansi Madhavani has indicated that the Bank of England is expected to keep its benchmark interest rate at 5.0% during its policy meeting in September. Madhavani suggests that due to the inflation rate in the services sector not aligning with the target of a sustained 2% inflation rate, the central bank will adopt a gradual approach in the early stages of the easing cycle. The Bank of England had previously cut rates in August and may consider another rate cut in November. Madhavani believes that the combination of economic weakness and progress in reducing inflation will pave the way for a total reduction of 150 basis points during this easing cycle.
The ETF industry is continuing to grow with net inflows of $66.3 billion in August.
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.
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.'
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.
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.'
According to Odaily, Goldman Sachs has addressed market skepticism regarding its optimistic view on gold prices, reiterating its stance that a Federal Reserve rate cut will drive gold prices higher. The firm has reaffirmed its recommendation to go long on gold, setting a price target of $2,700 per ounce by early 2025.
Lawyers representing the former Alameda Research CEO have requested time served and supervised release — an outcome that appeared more likely after a filing by US Attorneys.
The new market will feature Chaos Labs’ Edge Proofs Oracle support, but probably won’t be accessible in the United States.