Investment Learning

October 9, 2024

Citigroup Analysts Predict Federal Reserve Unlikely to Cut Rates in November

According to Odaily, Citigroup analysts have indicated that despite recent labor market data potentially causing some market participants to reconsider their expectations for Federal Reserve rate cuts, it is unlikely that the Fed will skip a rate cut during its November meeting. Last Friday's non-farm payrolls saw a significant increase of 254,000, surpassing economists' expectations of 140,000. However, analysts noted, 'We suspect that the strong employment report released last Friday may not be sustainable.' Citigroup highlighted, 'A series of weak labor market data previously led the market to expect the Federal Reserve to cut rates by at least 25 basis points at each meeting, and possibly take more substantial measures with a 50 basis point cut.'

October 9, 2024

Taiwan to Pilot Crypto Custody Services Through Local Banks

According to Cointelegraph, Taiwan is advancing institutional cryptocurrency adoption as local regulators plan to pilot crypto storage services through local banks. The Financial Supervisory Commission (FSC) of Taiwan is preparing to launch an institutional trial of crypto custody services, as reported by the Central News Agency on October 8.While the FSC expects to start collecting applications in the first quarter of 2025, three private banks in Taiwan have already shown interest in piloting a crypto custody business. The FSC has specified that financial institutions applying for the trial must detail the types of assets they will store for clients, such as Bitcoin (BTC), Ether (ETH), or Dogecoin (DOGE). Additionally, institutions must provide information about their target users, whether they are professional or general investors, crypto-asset platforms, or others.FSC’s director of the comprehensive planning division, Hu Zehua, mentioned at a press conference that the authority plans to publicly release information on the upcoming trial at least 15 days before starting to accept applications. The FSC will also collect public feedback on the proposed trial and revise the process accordingly. This is a developing story, and further information will be added as it becomes available.

October 9, 2024

U.S. Dollar Rises Ahead of Federal Reserve Meeting Minutes Release

According to Odaily, the U.S. dollar experienced an increase ahead of the release of the Federal Reserve's meeting minutes. Last month, the Federal Reserve cut interest rates by 50 basis points, and the upcoming minutes may provide insights into future policy measures. Chris Turner, an analyst at ING, noted in a report that the market has already reduced the Federal Reserve's 2024 easing cycle by about 30 basis points over the past few weeks. However, he also questioned whether investors are currently inclined to reprice the Federal Reserve's aggressive easing cycle.Turner further mentioned that the Consumer Price Index (CPI) data, scheduled for release on Thursday, could indicate that the core inflation rate in the U.S. remained high in September. This could potentially support the dollar. The market's focus remains on the Federal Reserve's next steps and the implications of the CPI data on the broader economic outlook.

October 9, 2024

Fed's September Meeting Minutes To Be Released This Week

According to Odaily, the minutes from the Federal Reserve's September meeting will be released this Thursday at 2:00 AM UTC+8. SEB, a Swedish bank, noted that apart from the rate cuts discussed in the September meeting, new economic forecasts were also provided. These forecasts indicate that by 2026, the U.S. economy is expected to achieve a soft landing with an economic growth rate of around 2% and inflation nearing target levels. The interest rate predictions suggest two 25 basis point cuts before the end of this year and a 100 basis point cut in 2025.The minutes will offer interesting insights into the pace of future rate cuts and the factors that might trigger faster reductions. Given that the rate-cutting cycle has already begun, discussions on long-term rates, including when and at what level they are expected to bottom out, will also be of significant interest.

October 8, 2024

New Zealand Central Bank Lowers Interest Rate by 50 Basis Points

According to Odaily, the Reserve Bank of New Zealand has reduced its interest rate by 50 basis points to 4.75%. This move aligns with market expectations and marks the second consecutive rate cut.