Arthur Hayes, co-founder of Crypto Exchange Bitmex, tells investors that he is looking forward to quantitative tightening (QT) and Federal Reserve’s comments on the European Union’s better economic performance against America ahead of its Fed Day announcement on Wednesday.
with x postHayes asked whether the Fed would mark the end of QT, a policy of withdrawing liquidity from financial markets. He also said the rise in European defence spending funded by the European Central Bank stimulus could outweigh the short-term financial strength of the US economy.
“If yes, fix it. If no, grab your buttHayes writes, hinting that market revisions could be stable if European fiscal expansion takes priority over US policies. Otherwise, the volatility will continue.
Hayes’ comments come after our stock lost its weekly gain
The comments from American businessmen go against the backdrop of emotional reversals on Wall Street, with key metrics dropping after Monday’s short rebound. According to Yahoo Finance Charts, S&P 500 Hut Over the past 48 hours, the Nasdaq 100 has slipped 1.8%, while the Dow Jones has dropped 0.77%.
Heavy sales including Facebook have hit the biggest US tech companies including Facebook. Chip Giant Nvidia fell 3.43% in its pre-market trading session on Wednesday.
However, European stocks did not suffer the same fate as US stocks. The euro was well above the dollar at $1.09 after Germany’s resigning parliament approved a major expansion of government borrowing.
Protected by CDU/CSU, SPD and Green Party, the measure includes an EUR 500 billion ($540 billion) infrastructure investment plan, which exempts defence spending from debt restrictions. The bill is waiting now Approval A senator representing the country’s 16 states from Bundesrat, Germany.
The outlook for increased spending in Europe has led to an increase in arms manufacturer Rheinmetall share price. It has risen sharply Over 123% since the start of the year. The BAE system added over 0.5%, while the Stoxx 600 Aerospace & Defense ETF rose 1.46%.
On the other hand, it’s wider Stoxx 600 It had risen slightly to 0.61% before the market closed on Tuesday, but now it has lost 0.21%, which is still above the number of Wall Street.
The Fed will remain stable at rates, but future reductions are still on the table
The Federal Reserve is widely expected to not change interest rates after the March 18-19 meeting. However, traders expect central banks to show potential interest rate cuts later this year.
Current market prices suggest three rate cuts likely to begin in June, while economists are predicting two cuts.
For investors, concern has moved beyond interest rates to slowing economic growth and disruption caused by the Trump administration’s trade policy.
Jeff Blazek, co-chief investment officer of Neuberger Berman’s multi-asset strategy, told Bloomberg that the market is no longer seeing any moves from the Fed.
“Yes, we need to be aware of the possibility of an increase in inflation. However, we are much more focused on the impact on growth from potential demand disruption as prices rise due to feesHe said.
American Trade Ally Canada wants to join the EU
More than a week ago, President Trump overturned a 25% tariff on all US steel and aluminum imports. Taxation elicited immediate retaliation from Canada and the European Union, but Mexico and the UK chose a more measured response.
According to the recent Opinion surveyAlmost half of Canadians are OK with American allies joining the European Commission.. A survey conducted in late February found that twice as many Canadians retain positive European views (68%) compared to the US (34%).
The EU believes the poll results may have been influenced by Trump’s approach to trade laws that have strained ties with Canada.
