Authorized and Regulated Entities: SARACEN MARKETS (PTY) LTD

Market Outlook

Markets Brace for Powell’s Speech as Traders Anticipate Fed's Signal on Rate Cuts 1

Markets Brace for Powell’s Speech as Traders Anticipate Fed’s Signal on Rate Cuts

Financial markets are on edge as traders await Federal Reserve Chair Jerome Powell’s upcoming speech on Friday, with expectations mounting that he may signal the central bank’s readiness to begin cutting interest rates. Amid this anticipation, U.S. Treasury 10-year yields remained steady, reflecting a cautious optimism in the bond market. The bullish sentiment in equities has […]

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U.S. Inflation Data Fuels Market Confidence in Fed Rate Cuts as Treasury Yields Rise 3

U.S. Inflation Data Fuels Market Confidence in Fed Rate Cuts as Treasury Yields Rise

The latest U.S. economic data has bolstered market sentiment, following Wednesday’s inflation report, which revealed that core consumer prices in July rose at the slowest annual pace since 2021. This significant cooling in inflation has heightened expectations for the Federal Reserve to initiate interest-rate cuts in the upcoming September meeting. Traders are now fully pricing in a 25

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U.S. Inflation Eases, Paving the Way for Fed to Shift Focus Toward Labor Market Support 5

U.S. Inflation Eases, Paving the Way for Fed to Shift Focus Toward Labor Market Support

The cooling of inflationary pressures in the U.S. is strengthening the case for the Federal Reserve to begin lowering interest rates, allowing policymakers to pivot their attention toward bolstering the labor market. Analysts at Saracen Markets are forecasting a modest 0.2% increase in both the consumer price index (CPI) and the core CPI, which excludes volatile

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Markets Brace for U.S. CPI Data Amid Fed Rate Cut Speculation 7

Markets Brace for U.S. CPI Data Amid Fed Rate Cut Speculation

Following last week’s market turbulence, all eyes are now on Wednesday’s U.S. consumer price index (CPI) report, which could determine whether the Federal Reserve has the flexibility to shift its focus back to the labor market. The key question for investors is whether the Fed can aggressively front-load rate cuts to achieve a soft landing for the

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Fed Rate Cut Hinges on Upcoming CPI Report as Market Braces for Volatility 9

Fed Rate Cut Hinges on Upcoming CPI Report as Market Braces for Volatility

All eyes are on this week’s U.S. consumer price index (CPI) report, which could provide the Federal Reserve with the crucial data needed to justify an interest rate cut at its next meeting in September. Market participants are eagerly anticipating the release, hoping it will offer the Fed the ammunition to shift its monetary policy stance

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Resurgent Yen and Mixed Signals from Fed Officials Temper Market Rebound 11

Resurgent Yen and Mixed Signals from Fed Officials Temper Market Rebound

U.S. equity futures remained flat on Friday, while the dollar weakened and Treasury yields dipped after a three-day climb. A renewed strength in the yen is now posing a challenge to the full recovery of risk appetite, which had been shaken by last week’s global market meltdown. This comes on the heels of a more optimistic U.S. jobless claims report,

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Markets Adjust to Central Bank Uncertainty Amid Volatile Week 13

Markets Adjust to Central Bank Uncertainty Amid Volatile Week

Global markets are recalibrating amid uncertainty over central bank rate paths following a tumultuous week marked by policy decisions that have left investors on edge. The dollar weakened against major currencies, including the yen. A Thursday summary of opinions from the Bank of Japan’s recent meeting, where rates were raised, revealed divergent views among members—one pinpointing the

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Global Markets Rally as Yen Plummets Following BoJ Deputy Governor's Dovish Signal 15

Global Markets Rally as Yen Plummets Following BoJ Deputy Governor’s Dovish Signal

Global markets surged while the yen tumbled more than 2% against the dollar after Bank of Japan Deputy Governor Shinichi Uchida pledged not to raise interest rates amid unstable markets. Uchida’s dovish stance came in response to significant financial market volatility in Japan, reassuring investors that the BoJ would maintain its accommodative monetary policy. In the U.S.,

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Global Markets Rebound Amid US Recession Fears, AI Unwind, and Yen Surge 17

Global Markets Rebound Amid US Recession Fears, AI Unwind, and Yen Surge

Global markets experienced a sharp rebound today following an intense three-day selloff driven by speculation about an imminent US recession, the unwinding of artificial intelligence euphoria, and a surging yen causing a reversal of carry trades. The market reaction on Monday was extreme, with U.S. Treasury yields dropping to as low as 3.67% before being pushed

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Global Stock Selloff Intensifies Amid Fed Policy Concerns and US Economic Slowdown 19

Global Stock Selloff Intensifies Amid Fed Policy Concerns and US Economic Slowdown

A global stocks selloff deepened on Monday as mounting concerns grew that the Federal Reserve might be lagging in providing adequate policy support for a slowing US economy, prompting investors to seek refuge in bonds. Friday’s data revealed that US nonfarm payrolls recorded one of the weakest figures since the pandemic, while the unemployment rate unexpectedly climbed

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