Market Compass
A Respite in Global Markets and Digital Assets…
- Developments regarding the US Federal Reserve (FED) and tariffs are closely monitored in global markets. Trump’s tariffs on many countries came into effect yesterday. The President also announced that Stephen Miran, one of his economic advisors, is the candidate he is considering to replace Kugler after his resignation.
- Stephen Miran, President of the Council of Economic Advisors, can be considered as someone close to Trump’s economic line. He advocates closing the current account deficit with the depreciation of the dollar and supports loose monetary policy. He will not be able to vote at the September meeting of the Federal Open Market Committee (FOMC), but he may be an influential figure at the meetings in October and December.
- Meanwhile, while it is almost certain that the FED will decide to cut interest rates at its September meeting, a total of three rate cuts are being priced in for the whole year.
- Yesterday, Atlanta Fed President Bostic said that he did not rule out the possibility of a single rate cut during the year, followed by St. Louis Fed President Musalem’s (FOMC voting member) comments.
- Hours before the deadline given by Trump to Putin ahead of peace talks with Russia, the parties agreed to meet. Additional sanctions that will come into effect if a ceasefire does not come out of the negotiations are still on the agenda.
- Hopes that the war between Russia and Ukraine may end, higher-than-expected corporate profits and growing expectations that the Fed may accelerate interest rate cuts support risk appetite, while signs that the US economy may be cooling in the light of the latest data, uncertainties about tariffs that have not been fully resolved and worries that a correction may follow the recent rises in stock market indices are the dynamics that suppress this perception.
- European stock markets are generally flat and slightly positive this morning. Wall Street futures have a similar picture. After yesterday’s gains, digital assets are slightly negative and flat, in line with the nature of the market.
- Yesterday, President Trump’s signing of a decree allowing US pension funds to invest in alternative instruments, including cryptocurrencies, played a leading role in the appreciation of digital assets. We believe that this move, which comes in the wake of recent regulations, is a very important development in the adoption of crypto assets.
- We believe that the small pullback in major cryptocurrencies during the day, following yesterday’s gains, is a normal and expected process. Assuming there are no surprises, we see a much higher probability of a rebound in prices than a decline.
For a detailed review of our twice-daily technical analysis report and the latest developments in digital assets click here.
Highlight of the Day
Important Economic Calender Data
| Time | News | Expectation | Previous |
|---|---|---|---|
| – | Immutable (IMX) 24.52MM Token Unlock | – | – |
| 14:20 | FOMC Member Musalem Speaks | – | – |
Information
*The calendar is based on UTC (Coordinated Universal Time) time zone.
The economic calendar content on the relevant page is obtained from reliable news and data providers. The news in the economic calendar content, the date and time of the announcement of the news, possible changes in the previous, expectations and announced figures are made by the data provider institutions. Darkex cannot be held responsible for possible changes that may arise from similar situations.
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