May 13th 2022, 5:09:10 pm
(about a year ago)
🤑Risky assets continue to deliver negative returns🤑
A wide range of risky assets, from North American equities and bonds to cryptos, are still going through the risk-off sentiment, with inflation and global recession as the main focal points. S&P 500 and Nasdaq managed to add 0.25% and 98% today, while Canada’s S&P/TSX declined 0.55% as oil prices fell below 100, with West Texas Intermediate standing at 98.9 per barrel.
As the ripple effect of the last week’s 0.5% rate hike by central banks cast through the markets, different officials spoke out today on their views on the effect of the higher interest rates on the US economy. The US is expected to increase policy rates to 2.5% by the end of the year, but Canada is less likely to follow the lead as its economy is more prone to recession risks. With the relative hawkishness of the US central bank, which is considered a haven world currency reserve, the US dollar keeps its firm ground against other major currencies standing at 1.30 CAD.
Meanwhile, in the crypto markets, where bulls believed Bitcoin could touch 100k in 2022, the leading coin fell below USD30k for the first time since 2021 as investors feared the 2018 collapse. According to Bloomberg, more than 42% of Bitcoin investors are now at a loss on their investments.