▼ -8.75 / -0.03%
▼ -30.24 / -0.84%
▲ +300.34 / +0.27%
▲ +38.95 / +1.27%
▲ +492.82 / +0.96%
▲ +71.37 / +0.21%
▲ +42.13 / +0.27%
▲ +29.41 / +0.03%
▲ +11.92 / +0.17%
JSE Top 40
▲ +141.73 / +0.25%
US markets boosted by the Fed’s monetary policy.
Last Week’s Highlights
China bans digital currencies
In another episode of China’s hard crackdown on private capital, the country’s central bank stated that all digital currencies are and should remain illegal in China. The crackdown on digital currencies extends from a joint announcement from Beijing’s toughest and most powerful regulatory agencies, in which they vow to regulate, and avoid all internet transactions to mainland China, filling an otherwise grey area. Following the news most crypto related stocks, and the currencies themselves tumbled on high percentages.
Fed delays taper and boosts markets
The new Fed policy meeting had investor’s eyes the entire week. Amid the woes in the market because of the Evergrande crisis, monetary policy in the US could help shift the luck of the otherwise bearish sentiment of the week. Fed chairman Jerome Powell made the announcements letting investors know that bond tapering will be delayed, at least until November. This gave a breath of fresh air to the markets, which rose a small amount after days of losses related to Evergrande’s default.
Coming Up This Week
Huawei’s CFO is released from fraud charges
Meng Wanzhou, CFO of Chinese giant Huawei, was released from house arrest in Canada last week as she reached an agreement with the courts in the U.S after a show of political force from many countries. The Chinese Executive had been held for almost a year for charges of fraud and bypassing US sanctions to China, and had an extradition request from the US. This arrest is considered to be part of the US-China trade wars, as Huawei was sanctioned by the Trump administration, and banned from many US based software uses.
Germany and Evergrande end the bull market
The biggest European Indices ended the week on a bearish sentiment in a crucial week to the region’s economy. First Germany’s elections are worrying investors as it will mark the policy on business in the block’s largest and most prosperous economy. With the SPD heading the race, many worry of anti-business policies arising in Berlin. However, this was not the only condition that held markets on the downside. Europe may be affected as well by the default of chinese giant Evergrande. Many debt owners, or bond holders are important to the region’s economy, helping the bearish sentiment remain.
More Things to Sip On…
Elon Musk says Chip Shortage is a short term issue.
The new iPhone 13 hits stores.
DOJ sues American Airlines and Jetblue over antitrust concerns.
How to pay off debt (while prioritizing saving)
Bull and Bear Markets: How to tame these beasts
Understanding time value of money
“Successful investing is about managing risk, not avoiding it.”
– Benjamin Graham –
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