Market Round Up: Fearful Sell-Off 😱 IMF Warns of Crypto Risks 🚦🚥

by | 11 Oct, 2018

 

1. Fearful sell-off

It was a bit of an epic bloodbath for global equities yesterday, with the S&P 500 suffering massive intraday losses in excess of 3%. A cocktail mix of developments appear to have spooked the markets, including the recent rise in treasury bond (UST) yields, a warning from the International Monetary Fund (IMF) on global growth and a lingering Sino-US trade spat.

Some investors may also be starting to question whether the U.S. stock market’s strength is really justified. The S&P has retreated from recent record highs and technicals and futures are hinting further losses.

Meanwhile, President Trump weighed in on the stock market sell-off, labelling it a long-awaited correction, whilst again criticising the Fed for its policy path by claiming that the Fed had gone “crazy”. The IMF’s Christine Lagarde has since come out with comments in which she defended the Fed’s Chairman Jerome Powell, lauding him and his committee for basing their rates hike decision on actual information, rather than political pressure. Notwithstanding, the constant remarks from Trump will not go unnoticed by global investors. We will be watching the markets with bated breath.

 

2. IMF warns of crypto risks

If you thought stock investors were flying to crypto currencies as an alternative haven, think again. It isn’t happening. Furthermore, the roller-coaster fluctuations in values of crypto currencies could contribute to a weakened global financial system, says the International Monetary Fund in its key annual report.

“Cybersecurity breaches and cyber attacks on critical financial infrastructure represent an additional source of risk because they could undermine cross-border payment systems and disrupt the flow of goods and services”, said the report. While the Global Financial Stability Report (GFSR) recognised that the rapid development of crypto currencies and blockchain-focused fintech companies had “potential benefits”, it also pointed out that the “knowledge of potential risks and how they might play out is still developing.”

Despite its crypto warning, the IMF still sees escalating trade tensions between China and the U.S. and the mounting weakness in emerging markets as far more serious. So where’s the investors safe haven? Cash?

All emails include an unsubscribe link. You can opt-out at any time. ​See our privacy policy.

ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:
Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.
Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.
Brokerage services are provided by the following:
US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here.
India account traded securities are provided by SIC Stocks & Services PVT Ltd. SIC does not make any personal recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by SIC may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. For more information and disclaimers, click here.

Download on the App Store           Download on Google Play

ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:
Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.
Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.
Brokerage services are provided by the following:
US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here.
India account traded securities are provided by SIC Stocks & Services PVT Ltd. SIC does not make any personal recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by SIC may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. For more information and disclaimers, click here.

 

Share This