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RBA holds interest rates unchanged for sixth meeting in a row
The Reserve Bank of Australia voted to hold interest rates unchanged at 4.35%, the highest since November 2011, as expected by analysts.
As the RBA ceases its policy tightening path, it likely reflects its belief that it has reached a suitable level of inflationary control, and the next step will likely be an interest rate cut.
Dow Jones slides over 1000 thousand points, marking worst daily loss in two years
US stock indices plunged on Monday due to concerns about a potential US recession, and speculation about the Federal Reserve’s monetary policies.
The selloff came after recent US data showed the economy added only 114 thousand new jobs last month, down from 179 thousand in June, and below estimates of 185 thousand, while unemployment rose from 4.1% to 4.3%.
Concerns about a US recession spiked after the data, with some investors saying that the Fed might have held off too long before easing policies.
However, many economists expressed doubts about the susceptibility of the US labor sector to quick deterioration, arguing that vacant jobs data indicate the demand is still strong.
According to Bloomberg, there’s a 60% chance of a 0.25% emergency interest rate cut by the Federal Reserve in a week according to betting markets.
Overall, the markets now expect the Federal Reserve to cut interest rates by at least 100 basis points by the year end according to the Fedwatch tool.
Earlier US data showed the services PMI up by 2.6 points to 51.4, from 48.8 in June.
On trading, Dow Jones closed down 2.6%, or 1034 points to 38,703, with a session-low at 38,499.
The S&P 500 index tumbled 3%, or 160 points to 5186, with a session-low at 5119.
The NASDAQ gave up 3.4%, or 576 points to 16,200, with a session-low at 15,708.
Ethereum falls over 10%, crypto market loses 7% of value in a single day
Cryptocurrencies tumbled on Monday amid a violent selloff wave that hammered all high-risk assets due to concerns about a US recession.
The selloff came after recent US data showed the economy added only 114 thousand new jobs last month, down from 179 thousand in June, and below estimates of 185 thousand, while unemployment rose from 4.1% to 4.3%.
Concerns about a US recession spiked after the data, with some investors saying that the Fed might have held off too long before easing policies.
However, many economists expressed doubts about the susceptibility of the US labor sector to quick deterioration, arguing that vacant jobs data indicate the demand is still strong.
According to Bloomberg, there’s a 60% chance of a 0.25% emergency interest rate cut by the Federal Reserve in a week according to betting markets.
Overall, the markets now expect the Federal Reserve to cut interest rates by at least 100 basis points by the year end according to the Fedwatch tool.
Earlier US data showed the services PMI up by 2.6 points to 51.4, from 48.8 in June.
Ethereum
On trading, ethereum tumbled 0.7% on the Coinmarketcap platform as of 22:26 GMT to $2447.2.
Crypto market value fell by 7.5% to a total of $1.93 trillion.
Dow Jones plunges by over 1000 points, NASDAQ tumbles over 3%
US stock indices declined on Monday amid a heavy selloff wave that engulfed the markets due to concerns about a potential US recession.
The selloff came after recent US data showed the economy added only 114 thousand new jobs last month, down from 179 thousand in June, and below estimates of 185 thousand, while unemployment rose from 4.1% to 4.3%.
Concerns about a US recession spiked after the data, with some investors saying that the Fed might have held off too long before easing policies.
On trading, Dow Jones fell 2.5%, or 1024 points as of 15:57 GMT to 38713, while S&P 500 fell 3%, or 160 points to 5184, as NASDAQ tumbled 3.7%, or 621 points to 16154.