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Jumbled Asian Stocks After Fed’s Rate Hike Expectations

Stock markets in Asia saw a mix on Thursday following the minutes from the Federal Reserve's recent meeting which has expected more interest rate rise.

In Hong Kong and Sydney, benchmarks saw a decline; however, Tokyo, Shanghai and Seoul faced a jump. Oil prices increased as well. Economic activities will be held down as a result.

Interest rate surge in the U.S. and other western countries has concerned investors. They are also upset over the negative impacts from the Russian attack and a fast slowdown in the Chinese economy.  

The report from the Federal Reserve on Wednesday indicated 0.5-percentage-point hikes supported by board members. The majority of board members in this month meeting approved that 0.5-percentage-point rise to the benchmark short-term rate of Federal would probably be convenient. 

In a report, however, no bigger rise was mentioned, according to Anderson Alves of ActivTrades. 

Tokyo’s Nikkei 225 grew below 0.1% to 26,689.00 but the Shanghai Composite Index jumped 0.4% to 3,111.17. Hong Kong’s Hang Seng Index dropped 0.6% to 20,053.50.

The Korea Composite Stock Price Index or KOSPI rose 0.5% to 2,630.34, Sydney's S&P-ASX 200 declined 0.4% to 7,126.20, and indexes of New Zealand and Singapore saw a jump. Bangkok SET Index went down, though.

The benchmark S&P 500 index, on Wall Street, increased 0.9% to 3,978.73. The Dow Jones Industrial Average rose 0.6% to 32,120.28. The Nasdaq Composite jumped 1.5% to 11,434.74.

Energy market wise, benchmark U.S. crude oil increased 58 cents to $110.91 a barrel in electronics business on the New York Mercantile Exchange (NYMEX). In the previous meeting, it increased to $110.33.

In London, Brent crude rose to 44 cents to $111.56 per barrel. In the previous session, Brent crude boosted 47 cents the previous session to $114.13 per barrel.

As for currencies, the dollar approached to 127.36 yen (from 127.32 yen) and the euro advanced to $1.0698 (from $1.0688).

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By Saha on May 26, 2022

Bitcoin's Value Drops Amidst Kazakhstan Crisis

After statements by the US Federal Reserve, Bitcoin prices have dropped to their slightest record in months.

The cryptocurrency’s value saw a decline, each digital coin’s value jumped down from $47,000 to below $42,000 early in the week.

The decrease happens as the outcome of a proceedings of the American Federal Reserve who proposed an increase in interest rates.

In this regard, political developments in Kazakhstan, the world’s second top bitcoin mining epicenter, have, too, been a matter of concern. However, it’s hard to associate any jump or fall in Bitcoin prices with only one cause as it has a global and acentric essence.

The Federal Reserve's recent meeting in December stated that a rise in interest rates might happen sooner than expected and America's central bank will likely liquidate some of the assets. This might have a side effect on traditional investors holding Bitcoin as they might decide for assets with little risk.

In the meantime, Kazakhstan, a core place for Bitcoin mining, a process which adds new Bitcoin transactions to the blockchain, has this week witnessed violence and protests over increase in fuel prices. Protesters in the Central Asian country took over buildings in Almaty.

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By Saha on January 10, 2022

Surging Cash in Circulation

A promising signal in economy, 2020 saw a huge amount of money in circulation, a rate never experienced since 1945. Federal Reserve data revealed that cash in circulation surged to $2.07 trillion by the end of 2020, 11.6% increase from its previous year. The $2.2 trillion stimulus by the government in the month of May and digital money-printing by Federal Reserve, pumped to the monetary system, proved to be effective. During history, when economy has been threatened, there has been a growth in currency in circulation. On the other hand, cash buildup brings about a boost in economy. Co-founder of DataTrek Research Nick Colas reported at the beginning of economic cycles, the U.S. cash in circulation sees a yearlong boost. The examples are in 1983, with the country getting rid of economic recession, 1991 when it was going through a decline, 2002 when it withdrew from dot-com bubble, and last but not least 2009 when economic decline was ending. Samira H.
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By Samira Hassanzadeh on October 19, 2021

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