🔴👉ALL IN RED🔴🔥🔥
▶️ What's Happening😱🫣
The Japanese stock market suffered a major collapse. Its main index, the Nikkei, fell 5.81%, falling to levels not touched since 1987. Last Wednesday the Bank of Japan decided, against all odds, to raise interest rates, defying market expectations.
The short-term objective of the Bank of Japan is to set rates at levels that do not cool or stimulate growth. This, according to analysts, would consist of placing them between 0.5% and 1.5% in the coming years, if inflation reaches 2% on a sustained basis, as expected.
On Friday, discouraging employment data heightened fears of a possible recession and the yen rose to 7-month highs against the dollar. It was the worst percentage result for the index since the crash in October 1987. The market reaction has been worse than expected, leading to dramatic falls, which this “dark Monday” reached 12.4%.
Meanwhile, Wall Street is also falling, but not only driven by the collapse of the Japanese market.
On Friday, the US stock market suffered falls of up to 2.8% in the main indices. And although for months the US economy has been showing signs of cooling and prices are apparently under control - the CPI rose 3% in June, compared to more than 9% a year ago.
The labor market data for June exceeded growth expectations, although unemployment rose to 4.1%. And although the central bank confirmed the economic slowdown in mid-July, the first rate reduction was postponed to the September calendar.
This Monday, stock futures fell. The falls are such that even the crypto market is being affected. Yesterday we saw Bitcoin (BTC), the leading cryptocurrency, fall to 5-month lows, with a 12% drop to $53,008.
$BTC $ETH $BNB #Bitcoin #Binance #economía #CriptoNews #MarketDownturn