The S&P 500 has seen its longest period without a 2% sell-off since the financial crisis, with investors flocking to megacap tech stocks like Nvidia in anticipation of AI-driven profits. The market’s low volatility, reflected in the Cboe Volatility Index (VIX) hitting multiyear lows, has been attributed to receding inflation, shifting monetary policy expectations, and active hedging by institutions. However, the duration of this low-volatility period remains uncertain, as past instances have seen a resurgence of market volatility after prolonged calm.
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The Warning of the 1970s Stock Market Turmoil
The U.S. stock market experienced significant turmoil 50 years ago, with the S&P 500 Index falling by nearly 50% between January 1973 and September 1974. This decline was part of a bear market that began in late 1968, following a rally led by a small group of large, high-quality companies before a more severe collapse.
read moreBitcoin Price Plunges Close to $64,000 Amid ETF Withdrawals
Bitcoin’s price dropped to nearly $64,000 as US spot Bitcoin ETFs experienced significant outflows, with Grayscale Bitcoin Trust and Fidelity Wise Origin Bitcoin Fund being the most affected. The selling pressure may be attributed to the German government’s transfer of approximately $195 million in Bitcoin to exchanges since June 19, alongside hedge funds reducing their market exposure to Bitcoin. Additionally, macroeconomic factors, including the Federal Reserve’s stance on interest rates, could further impact the market.
read moreThe Impact of SNB Interest Rate Cut on Mortgages and Savings
The Swiss National Bank has reduced its key interest rate to 1.25%, citing controlled inflation and moderate economic growth. This decision is expected to have limited impact on fixed-rate mortgages, while making variable-rate mortgages more attractive. The move is likely to affect savers, homeowners, and renters in Switzerland.
read moreStock Market Opens with Cautious Optimism Amid Mixed Global Cues
The Indian stock market opened with cautious optimism amid mixed global cues, as the BSE Sensex and NSE Nifty saw modest gains. Sectoral performances influenced early trading patterns, with varied movements across sectors contributing to the mixed sentiment. Global economic uncertainties and geopolitical developments kept market sentiment cautious, prompting traders to stay vigilant for further impacting developments.
read moreUS Stock Market Crash Probability Below Average According to “Froth Forecasts
The probability of a US stock market crash is currently below average, as indicated by “froth forecasts,” a catchy name for a specific type of forecast.
read moreBank of Japan Governor Presents Semiannual Currency and Monetary Control Report
The Bank of Japan’s Governor, Kazuo Ueda, presented the Semiannual Report on Currency and Monetary Control to the Committee on Financial Affairs in Tokyo on June 18, 2024. The report outlined the Bank’s strategies and actions regarding currency and monetary control, providing insights into the country’s economic policies and future directions. Governor Ueda’s statement shed light on the Bank’s approach to addressing financial challenges and maintaining stability in the ever-evolving global economic landscape.
read moreDogecoin Long Liquidations Reach $60 Million, Concerns Rise in Crypto Market
Dogecoin suffered a significant drop, resulting in the liquidation of $60 million in long positions, causing concern among its supporters. The broader crypto market also faced turbulence due to macroeconomic factors, with BTC and Ethereum experiencing substantial liquidations. Factors such as the Fed’s decision on interest rates and the dollar’s strength compared to other fiat currencies contributed to the market’s instability.
read moreSwiss M&A Market Outlook: Impact of Rising Interest Rates
Higher interest rates are impacting the M&A market in Switzerland, causing some owners to delay selling their businesses. However, optimism is growing due to expected interest rate cuts and increased economic confidence, potentially leading to higher sale prices later this year. Private equity firms are under pressure to conduct transactions despite lower valuations and higher financing costs, likely contributing to an increase in M&A activity, particularly in sectors such as industry, pharmaceuticals, and technology. Many companies are planning acquisitions in the next 12 months, with a focus on expanding in Switzerland and targeting European markets, especially Germany. Overall, the outlook for the M&A market in the EMEA region is positive, with expectations of increased deal values and a resurgence in large transactions after a slowdown in 2023.
read moreSolana (SOL) Price Prediction: Recovery to $150 Hinges on Bitcoin’s Performance
Solana’s price has dropped below $140 for the first time since early May 2024, with declines of 5% in the daily charts, 11.5% in the weekly charts, 17.6% in the 14-day charts, and over 21% in the previous month. Analysts predict that Solana may not reclaim the $150 level until early July, but a positive reversal in Bitcoin’s price, potential market-wide rally triggered by a new all-time high for BTC, and positive US CPI data for May 2024 could expedite Solana’s recovery.
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