This week has seen significant changes in financial markets driven by actions from the People’s Bank of China and the US Federal Reserve. Additional influence came from political events in Japan and inflation data in the US.
People’s Bank of China’s Stimulus
The People’s Bank of China (PBoC) has undertaken stimulus efforts aimed at reviving the Chinese economy, leading to a rally in risk assets. These actions followed the US Federal Reserve's decision to cut interest rates by 50 basis points, positively impacting global financial markets.
Political Situation in Japan
In Japan, political developments have further complicated the financial landscape. Shigeru Ishiba, known for his criticism of the Bank of Japan’s (BOJ) overly loose monetary policies, is on track to become the country’s next Prime Minister. This political shift has led to market speculation that the BOJ could move away from its historically low interest rate stance.
Crypto Market
In the crypto sphere, Bitcoin (BTC) ETFs ended the week with $494.4 million in new investments. Ethereum (ETH) ETFs also saw gains, closing the week with $58.7 million in new funds. BTC reclaimed the $66,000 level, while ETH traded around $2,700.
Next week, attention will focus on U.S. labor market data, which could support further rate cuts by the Federal Reserve. In the crypto space, there remains a high interest in BTC and ETH ETFs.
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