BTC’s holding above $28,000 suggests there is pent-up interest in cryptocurrencies. Larry Fink, CEO of Blackstone Group, acknowledged this pent-up interest, stating that there is growing demand for cryptocurrencies from clients around the world. While he could not provide specific details or comment on the status of the application, Fink’s comments highlighted the growing demand for cryptocurrencies.

Very bullish: Investors expect long positions before ETF approval

Despite the recent rebound from $27,000 to $30,700, investors are aware that the approval of the BTC ETF has not yet been fully priced into the market. This is why BTC remains above $28,000 as investors are eager not to miss out on further upside potential after actual approval. Market dynamics tend to exhibit short-term memory and the current situation may be forgotten in the coming weeks, causing BTC to remain at higher levels. Fake ETF news will not affect SEC approval

Fake ETF news circulating on platforms like Twitter is unlikely to have an impact on SEC approval. The Securities and Exchange Commission (SEC) focuses primarily on regulatory aspects and does not make decisions based on BTC price action or social media speculation. Therefore, while such news may create temporary noise in the market, it is unlikely to affect the SEC's approval process.

US Stock Market

US Stock Market – Positive Sentiment and Supportive Factors

Looking at the current equity market positioning theme, S&P 500 futures saw balanced flows in the first half of the week, followed by new short positions on Thursday. Net positioning remains at approximately $27 billion net short, similar to last week. Despite the large volatility, current positioning is not overextended and is in the bottom decile of positioning over the past three years. ETF inflows have increased recently. Similarly, Nasdaq flows, while different, appear to have stalled and even slightly corrected in net bearish positioning.

Sentiment towards US equities is turning positive, supported by a number of factors, including strong macro data including strong non-farm payrolls, CPI in line with expectations, and the Fed signaling a continued pause in rate hikes.

Moreover, expectations for third quarter earnings support above-consensus EPS growth expectations through 2024. The US is seen as a “safe haven” amid geopolitical risks, further boosting the outlook for US equities. Institutional money is flowing into technology and growth sectors, suggesting these sectors could lead any rally into year-end, with rotation more likely in 2024. Despite the challenges posed by major event risks, it remains important to maintain focus on favorable macro conditions.

US STOCKS-Stocks rise in volatile yield environment

The US stock market had a positive week, with share prices rising, while interest rate markets showed volatility in yields. The S&P 500 (SPX) rose 0.5%, with sectors such as Energy (+4.5%), Utilities (+3.6%) and Real Estate (+2.3%) outperforming. Interest rate markets had unexpected developments, with real and nominal yields falling, while inflation expectations rose. Stress indicators showed some concerns, creating a more obvious focus on potential risks.

However, despite the volatile market dynamics, the US economy remains strong with no signs of an impending recession. Third quarter GDP growth is expected to be close to 4%, the job market added 336,000 jobs in September, and the manufacturing sector appears to be recovering from the contraction. The Fed has made it clear that it will not raise interest rates again for now, given the rise in long-term Treasury yields. Although the Fed may take precautionary measures to reduce the probability of a recession, inflation remains above the 2% target, which may limit the chances of a rate cut until there are clear signs of deterioration in activity data.

Notably, there were encouraging signs of an acceleration in core prices and an unexpected acceleration in housing prices, which may reflect a rebound from previous lower readings.

Asia-Pacific

Investors prefer "value" and "low-risk" stocks

Investors in the Asia-Pacific region are favoring "value" and "low-risk" stocks for a variety of reasons. The region has witnessed significant outflows from emerging market funds, especially China funds, with investors expressing pessimism. This pessimism stems from concerns about the recovery of consumption and expectations of possible policy changes brought about by China's Third Plenum. As a result, investors are actively looking for value stocks with long-term potential, despite the short-term market sentiment that may be poor.

Factors driving investor preference for “value” and “low-risk” stocks

Overall, Asia-Pacific investors' preference for "value" and "low-risk" stocks reflects their cautious attitude towards consumption recovery, policy changes and market sentiment. Under uncertain market conditions, they actively seek stock investment opportunities with long-term potential and stability.