According to Bloomberg, this week several Fed officials will speak, and the U.S. second quarter core PCE price index data will be released. In addition, August new home sales, second quarter GDP and annual revisions, weekly unemployment claims and August durable goods orders will also be released.
Canada's July GDP data and August advance estimates are expected to show weak growth in the third quarter. The Organization for Economic Cooperation and Development (OECD) will release new economic forecasts on Wednesday, and the Swiss and Swedish central banks may cut interest rates, while the Reserve Bank of Australia is expected to keep interest rates unchanged.
In Eastern Europe, the Hungarian and Czech central banks are expected to cut interest rates by 0.25 percentage points on Tuesday and Thursday, respectively. The eurozone and the UK will release preliminary September purchasing managers' indexes on Monday, and Germany's Ifo business confidence index will be released on Tuesday. French and Spanish inflation data for September will be released on Friday, and inflation rates in both countries are expected to fall below 2%. Central banks in many African countries will also announce interest rate decisions, and Zambia's finance minister will provide a detailed policy roadmap.
In Latin America, Brazil's employment data is expected to show that the labor market remains tight and medium-term inflation may be close to the upper limit of the central bank's target. The market expects the Brazilian central bank to cut interest rates by 0.25 percentage points, and some analysts believe that a 0.5 percentage point cut may be possible.
● Wall Street investors turn to financial and technology stocks after the Fed cuts interest rates
According to Bloomberg, Wall Street investors are facing new challenges after the Federal Reserve began to cut interest rates. Traditionally, when interest rates are cut, investors will buy defensive industry stocks, such as consumer goods and healthcare, and high dividend industries such as utilities. However, this time the situation is different. Financial stocks have become the new favorite of investors because interest rate cuts reduce their financing costs and improve net interest margins.
Historical data shows that utility stocks have performed best in the past four rate cut cycles, while technology stocks have performed worst. Since 1970, the S&P 500 has risen an average of 21% after a rate cut.
Investors are now pouring back into large-cap technology stocks and other growth stocks. Net buying of U.S. technology, media and telecom stocks reached a four-month high. Real estate companies are also benefiting as interest rates fall and consumer spending increases. While utility stocks remain popular, the main reason is no longer their dividends, but their stability.
● Fed's balance sheet drops to $7.1 trillion
According to BlockBeats, as of September 17, the size of the Federal Reserve's balance sheet has dropped to around $7.1 trillion, now at $7.109 trillion. The total balance sheet reduction so far this year is about $1.39 trillion.
According to PANews, Token Unlocks data shows that this week, VENOM, YGG, AGIX, ENA and other tokens are expected to usher in large amounts of unlocking, among which:
Venom (VENOM) will unlock approximately 235 million tokens at 4:00 PM ET on September 25, accounting for 12.66% of the current circulation and worth approximately $26.1 million.
Yield Guild Games (YGG) will unlock approximately 14.08 million tokens at 10:00 PM EST on September 27, accounting for 3.65% of the current circulation and worth approximately $6.4 million.
SingularityNET (AGIX) will unlock approximately 8.19 million tokens at 8:00 a.m. Eastern Time on September 28, accounting for 1.63% of the current circulation and worth approximately $5.8 million.
Ethena (ENA) will unlock approximately 8.19 million tokens at 3:00 pm Eastern Time on September 29, accounting for 0.78% of the current circulation and worth approximately US$3.9 million.
Galxe (GAL) will unlock approximately 416,000 tokens at 8:00 AM Eastern Time on September 24, accounting for 0.33% of the current circulation and worth approximately $980,000.
Acala (ACA) will unlock approximately 4.66 million tokens at 8:00 a.m. Eastern Time on September 25, accounting for 0.43% of the current circulation and worth approximately $300,000.
Tornado Cash (TORN) will unlock approximately 91,600 tokens at 11:30 a.m. ET on September 28, accounting for 2.41% of the current circulation and worth approximately $240,000.
Euler (EUL) will unlock approximately 42,000 tokens at 8:47 a.m. Eastern Time on September 27, accounting for 0.23% of the current circulation and worth approximately $190,000.
● South Africa becomes first African country to issue license for cryptocurrency exchange
According to Odaily Planet Daily, South Africa is the first African country to issue a license for a cryptocurrency exchange. In 2021, the country explored a separate regulatory framework for cryptocurrencies and plans to implement it by 2022, with the goal of issuing final regulations that year.
According to a report by Statista, the revenue of the South African cryptocurrency market is expected to reach $246 million in 2024, with an annual growth rate (CAGR 2024-2028) of 7.86%, reaching $332.9 million by 2028.
● Silvergate executive: Regulatory shift led to bank closures
According to BlockBeats, on September 23, executives responsible for closing the parent company of Silvergate Bank said that despite the shrinking cryptocurrency industry and rising interest rates, the bank was able to meet regulatory capital requirements and continue to serve its customers.
However, regulatory changes from the Federal Reserve, FDIC, and OCC in 2023 prevented Silvergate Bank from continuing with its digital asset-focused business model.
