Global crypto market experiences a downturn as Bitcoin declines, while the U.S. dollar and gold prices surge in international financial markets.
Global Markets Report: 19th September 2021
In today's global markets report, a mixed performance was observed across major indices, with some ending in the positive while others declined.
The Federal Reserve's decision to cut its rate by 0.25 percent and expectations of one or two more reductions by 2025 have influenced the stock market. This move lowered the yield of other assets, making gold more attractive. As a result, the gold futures contract rose by 0.13 percent to $3,683.05 per ounce.
However, the strong dollar and rising U.S. Treasury yields, partly due to stability in the labor market and cautious Fed indications about further easing, have caused Asian markets to close in the red. The Nikkei 225 index in Japan fell by 0.63 percent, while the Shanghai Composite index ended negatively (-0.30 percent).
In the U.S., the number of initial jobless claims unexpectedly fell, indicating a potential improvement in the employment sector.
The price of November Brent crude futures on the London ICE exchange fell by 0.09 percent to $67.38 per barrel, and the price of October WTI crude futures decreased by 0.46 percent. The drop in oil prices could be attributed to a variety of factors, including global economic uncertainties and supply-demand dynamics.
The U.S. Dollar Index strengthened by 0.25 percent, reflecting the overall stability and strength of the U.S. dollar.
In the cryptocurrency market, Bitcoin (BTC) and Ethereum (ETH) prices fell by 0.49 percent and 0.96 percent, respectively. The fluctuations in the cryptocurrency market are often influenced by a multitude of factors, including market demand, adoption, and regulatory developments.
In Kazakhstan, the average dollar exchange rate showed a slight increase at the close of trading on the Kazakhstan Stock Exchange, with the official rate standing at 541.34 tenge per dollar. The current average dollar exchange rate in Almaty is Buying - 541.68 tenge and Selling - 543.57 tenge, while in Astana, the rates are Buying - 539.67 tenge and Selling - 544.67 tenge.
European markets showed mixed performance, with the DAX (-0.18 percent, Germany) and FTSE 100 (-0.08 percent, UK) decreasing, while CAC 40 (+0.21 percent, France) and Euro Stoxx 50 (+0.02 percent) ended in the positive.
It is important to note that in September 2021, the Federal Reserve did not announce specific direct changes targeting the stock market, gold, or Bitcoin prices. Their actions, such as interest rate policies, indirectly influence these markets. Bitcoin was mainly driven by market demand and adoption factors rather than Fed announcements during that period.
The Bank of Japan announced it will begin gradually selling its assets - ETF funds and J-REITs. This move could have implications for the Japanese market and broader global financial markets in the coming months.
Overall, the global markets continue to be influenced by a variety of factors, including economic indicators, geopolitical events, and monetary policies. As always, investors are advised to closely monitor these developments and adjust their portfolios accordingly.
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