August 15th 2022, 5:51:47 pm

(about 10 months ago)

Europe and Japan slow to increase interest rates

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💯Europe and Japan slow to increase interest rates➕

Despite Friday’s negative returns led by disappointing results from social-media companies, North American equity indices ended the week in green territory. Weak economic data and recession fears are still looming in the markets. S&P 500 and Nasdaq added 2.55% and 3.33% this week. Canada’s S&P/TSX composite added 3.20%. Still, the US equity markets are down 17% year to date. 

Following a percentage interest rate hike from the Bank of Canada and the hot inflation report of 8.6% in the US, the Federal Reserve is expected to increase the interest rate by 0.75% to tame inflation. Elsewhere, European Central Bank was too late to the party but finally raised the interest rate by 0.5% in their last week"s meeting. The late move was one of the principal reasons for the Euro to go on parity with the US dollar after 20 years. Bank of Japan, however, held its key interest rate steady at negative 0.1%, while the 10-year target of government bonds stayed at 0.00%. 

Commodity prices continue to come off their recent highs, with oil standing below 95 a barrel and gold sitting in the 1700 channel. Riskier assets such as cryptos gained during the week along with equities, where Bitcoin added 10% to hit the USD22,00 level.