According to Bloomberg News, disturbing inflation data, which is the US and Asia reset, and Bitcoin has been manifesting a volatile behavior again.
Monetary Policy
Inflation in October for the United Kingdom was recorded as the highest in a decade, exerting pressure on the Bank of England to increase the rates of interest at the next meeting. Persistent strong economic data in the United States is seen to be intensifying market positions for a stringent Federal Reserve monetary policy. The dollar now is at a one-year high and the proceeds of the 10-year Treasury are above 1.6%. Adding to the woes are the concerns about the re-emergence of the deadline of the debt-ceiling.
New Economy Forum
Bloomberg News reports that although inflation is one of the topmost topics of concern at the New Economy Forum in Singapore with most of the state heads discussing the uncertainties lying ahead the conference is being dominated by talks related to geopolitical issues. US Commerce Secretary Gina Raimondo stated that America is planning to initiate a framework that is new for the Indo-Pacific areas in 2022, adding the conviction that the people belonging to this region are looking forward to the United States the CPTPP. Wang Qishan, the Chinese Vice President while speaking at the vent assured that Beijing would continue to open avenues for foreign investment stating that, “China cannot develop in isolation”. The rich nations called for spending more money in developing countries on climate mitigation.
Reversal
Bitcoin’s fall below $60,000 amidst a larger selloff of the cryptocurrencies is again signaling volatility in the asset class. Banking watchdogs in the United States are becoming even more cautious about these digital tokens. The acting chief of the Office of Comptroller of Currency, Michael Hsu is implying a not-so-friendly stance on the industry in the upcoming review. Another bumpy session is being manifested by Bitcoin, nosediving to as low as $58,500 before it regained some ground, reports Bloomberg News.
Quiet Markets
Despite concerns related to monetary policy and inflation; the global equity markets are already having a low profile session. Overnight, there was a drop in the MSCI Asia Pacific Index to 0.5% while Japan’s Topix index was found to be closing at lower than 0.6%. In Europe, the Stoxx 600 Index recovered 0.1%. with the travel stocks registering as the biggest decliners. S&P 500 futures signaled a slight change at the opening, oil dropped below $80 a barrel amidst concerns that the United States and China would tap into the reserves of the same, and there was an increase in gold.
Watch Out For These Events
Bloomberg’s New Economy Forum is underway in Singapore. Nvidia Corp, Target Corp, TJX Cos Inc, and Cisco Systems Inc are a few companies that will report results.
