Earlier today, the Peoples Bank of China delivered their third round of rate cuts this week, following the FOMC's first pause yesterday. China is finally easing in response to a deteriorating macro environment, while the Fed is finally pausing after a rapid tightening cycle. Which of these major central banks is behind the market move?
Weston Nakamura explains the Nasdaq rally during Chair Powell's hawkish press conference through a cross-asset lens, looking at front end Treasury yields, Nikkei futures, and Nasdaq futures. Weston then dissects the price action of the Hang Seng index, as the PBOC cuts their 1-year MLF rate - and offers a differentiated view of interconnected equity markets between China, Japan, and the US.
Finally, Weston makes the case for why the probabilities of a Bank of Japan policy change at Friday's meeting is far higher than the nearly unanimous consensus view of no change.
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Disclaimer: Nothing discussed on Market Depth should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.
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