The Bank of Russia may pause its key rate-cutting cycle at its upcoming meeting, influenced by recent domestic fuel market events impacting inflation dynamics and rising inflation expectations, according to experts.
Bitcoin traded near $62,900 as the Strait of Hormuz remained closed to commercial traffic due to US-Iran conflict, making it the first liquid global asset to absorb weekend geopolitical risks before traditional markets reopen, potentially acting as an early warning system for oil prices and inflation.
US economic data, including retail sales and inflation reports, presents a mixed picture. While headline inflation fell due to cheaper energy and retail sales appeared soft, underlying consumer spending remains steady. This ambiguity complicates the Federal Reserve's interest rate decisions and impacts assets like Bitcoin, as real economic strength is questioned.
Bitcoin remained above $62,000 as renewed US-Iran conflict in the Strait of Hormuz boosted oil prices, sparking inflation concerns. Higher energy costs could pressure the Federal Reserve to maintain tighter monetary policy, impacting speculative assets like Bitcoin.
Gold is predicted to consolidate with a bullish bias in the near-term as Fed Chair Warsh notes falling inflation and weaker-than-expected US jobs data. Upside may be capped by aggressive Fed rate hike pricing, though a reduced probability of year-end hikes supports gold. The metal could reach $4300.
Australia's booming datacentre sector faces scrutiny from Transport for NSW and the Reserve Bank over its impact on industrial land availability for logistics, housing development, and inflation. Calls for a national pause are growing amidst concerns about rising costs, emissions, and strain on infrastructure.
New South Wales' upcoming budget will lower public transport fare caps on Opal and credit card payments to ease cost-of-living pressures. The Minns government aims for fiscal restraint while addressing inflation and housing affordability, balancing relief with economic discipline.
The Bank of England's Monetary Policy Committee (MPC) voted 7-2 to hold interest rates, citing persistent inflation pressures from higher energy prices. While inflation expectations have lowered, they remain above the 2% target, with concerns over the "scale and duration" of the energy price shock influencing the decision.
The Bank of England maintained its key interest rate at 3.75% on Thursday, balancing inflation concerns with weak economic growth. The decision, supported by most of the Monetary Policy Committee, comes as global inflation rises due to energy costs, with the UK particularly vulnerable. Despite a recent dip in UK inflation, a significant energy price cap increase is anticipated.
Bitcoin traded near $64,100, down 1% Thursday, as traders reacted to new Fed Chair Kevin Warsh's hawkish signals. Despite a pullback, Bitcoin is up 2% weekly, with analysts citing support levels and potential catalysts for cautious optimism.
The Federal Reserve kept benchmark interest rates unchanged, with new Chair Kevin Warsh signaling a possible rate hike due to inflation. Consumer prices rose 4.2% year-over-year in May, driven by energy costs from the U.S. war with Iran. Despite this, core inflation remains moderate, and the job market shows signs of improvement.
The Federal Reserve kept interest rates unchanged, citing rising inflation and energy costs. This decision offers little relief to consumers facing affordability challenges, with experts suggesting potential rate hikes instead of cuts.
The Bank of Japan raised its key interest rate by 0.25% to 1%, the highest since 1995, to combat inflation driven by soaring energy prices from the US-Iran conflict. The bank signaled further hikes if inflation persists, citing supply chain normalization uncertainty and a weak yen.
The Reserve Bank of Australia kept its official interest rate at 4.35% but warned of further hikes if inflation persists. Governor Michele Bullock stated that price rises are still too fast, indicating a potential increase if necessary. The RBA is not alarmed by a rise in unemployment to 4.5%, viewing the job market as still tight.
US stocks rose Thursday, led by tech and AI shares, as investors assessed valuations amid geopolitical tensions and inflation worries. The S&P 500 gained 0.5%, Dow Jones 0.7%, and Nasdaq 0.7%. Oil prices remained volatile due to the Iran conflict.
The European Central Bank has raised its main deposit rate to 2.25% in response to rising inflation, driven by the war in Iran and increased energy costs. This marks the first rate hike since 2023, with markets anticipating further increases.
Bitcoin (BTC) surged back to $63,000 despite rising US inflation and Iran closing the Strait of Hormuz. Oil prices also rose, with President Trump vowing further action against Iran. Analysts note market uncertainty due to combined geopolitical and energy disruption risks.
Fed Chair Warsh is facing pressure to consider rate hikes due to inflation, exacerbated by the Iran war. Despite Trump's past calls for lower rates, he now supports Warsh's independence, a shift from his stance on former Chair Powell.
President Trump downplayed rising inflation, calling the "great" numbers "good" and expressing a liking for inflation. He stated prices would fall sharply after the war with Iran ends and oil flows freely.
US stocks faced pressure due to the Iran war and rising oil prices, coinciding with the highest CPI in three years. While headline CPI rose 4.2%, core inflation at 2.9% suggests underlying inflation is not as severe, offering some market relief.
BIST 100 index declined 234.5 points with a trading volume of 194.8 billion lira. Geopolitical tensions in the Middle East and inflation fears weakened risk appetite globally, while AI optimism limited losses in tech stocks.
The SEC defends its settlement with Elon Musk over Twitter disclosure violations, while a Reuters analysis shows Eurozone companies are hesitant to raise prices despite inflation fears, unlike in 2022.
German economic forecasts are down, with the Sachverständigenrat für Wirtschaft halving its GDP growth projection to 0.5% for the current year and 0.8% for 2027, while raising inflation estimates. The government faces social reforms amid these economic challenges.
India signs BrahMos missile deal with Vietnam, warns of rising retail inflation due to fuel price hikes, and experiences a building collapse in Delhi killing six.
