Bitcoin News and Finance Data Shows Global Financial Conditions Tightest in 2 Years, Shaky Bond Markets Point to Long-Run Inflation Skip to main content

Data Shows Global Financial Conditions Tightest in 2 Years, Shaky Bond Markets Point to Long-Run Inflation

Data Shows Global Financial Conditions Tightest in 2 Years, Shaky Bond Markets Point to Long-Run Inflation

At the end of the trading day on Monday, Wall Street was roiled once again as major stocks plunged during the day’s trading sessions. Most news outlets indicate the Russia-Ukraine war is causing the bleak outlook and reports show strained financial conditions worldwide are currently the tightest since 2020. Meanwhile, bond markets during Monday’s trading sessions indicate increased inflationary pressures may be on the horizon.

Global Investors Grow Concerned About Strained Financial Conditions

Equities traders did not have a pleasant day during Monday’s trading sessions as the S&P 500, Nasdaq, NYSE, the Dow, and many other stocks plunged in value. The price shocks and economic fallout is no longer being blamed on Covid-19, as fingers are pointing at the ongoing Russia-Ukraine conflict in Europe.

While reports say the military warfare has been brutal, economic sanctions are also taking a toll on the Russian economy. Moreover, economists have noted the sanctions are affecting other economies worldwide and this weekend, the International Monetary Fund (IMF) warned the “economic consequences are already very serious.”

The IMF discussed how sanctions and warfare have added “extraordinary uncertainty” and the situation could cause inflationary pressures, supply chain disruptions, and price Shocks. Furthermore, on Monday, Reuters reported that the current financial conditions worldwide are the “tightest in two years.”

The last major occurrence of a crisis situation affecting markets globally was on March 11, 2020, otherwise known as ‘Black Thursday.’ DZ Bank strategist Rene Albrecht explains if inflation rises and “if the central banks take their mandates seriously, you will see a further (tightening) in financial conditions.”

Bond Market Volatility

On March 6, Bitcoin.com News reported on the U.S. Treasury yield curve and how it was showing signs of a recession. Bond markets continue to reflect a harsh economy and added inflation of close to “2.79% over the next decade,” according to data from Monday morning’s trading sessions.

Bond markets have experienced discontentment and extreme volatility during the last few weeks. On March 2, Ikigai Asset Management’s chief investment officer Travis Kling remarked the “last time bond market volatility was this high, the Fed cut rates 100 bps and did 3 trilly of QE in six weeks.”

In a March 7 note sent to Barron’s Alexandra Scaggs, Matthew Luzzetti and Deutsche Bank economists discussed the fear of long-lasting inflation and the irritability it may bring to the U.S. central bank.

“In light of recent energy price moves in response to events in Ukraine…long-run inflation expectations could be at risk of moving to an uncomfortable level for Fed officials, especially given the backdrop of these other forces pointing to persistently elevated inflation,” the Deutsche Bank economists said in a statement.

While stocks have been significantly down in value in recent times, the crypto economy has also felt the wrath of an uncertain and shaky economy. The crypto economy has shed more value since yesterday, dipping down to $1.78 trillion, losing 2.8% against the U.S. dollar in 24 hours. Gold, on the other hand, tapped $2K per ounce on Monday and is currently trading for $1,997 per ounce. Moreover, a barrel of crude oil jumped to $120.33 per barrel high on Monday as well.

What do you think about the current events concerning the global economy? Do you think investors should worry about tightened financial conditions worldwide? Let us know what you think about this subject in the comments section below.

Comments

Popular posts from this blog

Custodial Lightning Network Service Attack Discovered by LN ‘Newbie’ — Hacker Strikes 6 LN Custodians

On September 18, a Redditor posted to the r/bitcoin forum and explained how he discovered a way to “attack [the] lightning Network’s custodial services.” The Reddit account dubbed “Reckless Satoshi” wanted to figure out if a “discrepancy between real routing fees and service’s transaction fee can be exploited for a profit.” The researcher disclosed that he wanted to see how large the damage could be and said “it is bad.” 6 Lightning Network Custodial Services Attacked, Researcher Discloses Findings to Offenders Prior to Public Disclosure A Redditor called Reckless Satoshi published a disclosure post on r/bitcoin this past Saturday and disclosed how he had found a vulnerability with routing fees and some of the Lightning Network’s custodial services. The research attack was done in good faith and after it was complete he disclosed the bugs to the offending services before publishing his findings. Reckless Satoshi used the Lightning Network (LN) attack on six different services incl...

Axie Infinity Down 40% Since Last Week’s Price High, Protocol Revenue Outshines Competitors

Last week, the game token leveraged within the Axie Infinity gaming universe skyrocketed to all-time highs, while other crypto markets remained extremely lackluster. During the last seven days, Axie Infinity’s platform token has dropped significantly in value shedding more than 12%. Meanwhile, the game platform’s smooth love potion token has slid over 8% over the last 24 hours. Axie Infinity Down More Than 40% Since All-Time High Not too long ago, the axie infinity (AXS) token was a topical conversation because it reached an all-time high on July 15. At the time, AXS managed to capture $28.93 per unit and since then it has shed 12.8% during the last seven days. The axie infinity (AXS) token is used within the blockchain-based game that involves battles between token-based creatures called “Axies.” AXS is used for the game’s governance system as well as other actions within the game. At the time of writing axie infinity (AXS) is exchanging hands for $16.70 per coin. AXS/USD on Ju...

Play-to-Earn Game From Polker (PKR) Exchange Listing – Endorsed by Akon

The Play-to-Earn NFT based Polker.Game ‘s native token $PKR has been officially listed on the popular centralized exchange BitMart. Polker.game has been in the spotlight recently as Akon, the American R&B superstar and record producer gave his official endorsement of polker stating that the “game is revolutionary” and that Polker is “hands down.. the best play to earn, NFT game in the space.”. With the BitMart listing and celebrity endorsement from Akon, Polker is perfectly positioned to become a major player in the Play-to-Earn league. Watch Akon’s Video Here What is Play-to-Earn? Although not a new concept, play-to-earn has become a trending term due to the popularity of the NFT game AXIE infinity. In the past, previous play-to-earn games have also achieved success – however, thanks to the huge amount of development in the blockchain space in recent years the gaming experience is now massively improved. Play-to-Earn games are essentially free to play and open to anyone and...

China to Crack Down on Copyright Infringement Through NFTs

Authorities in China are going after creators of digital collectibles based on other people’s works of art, the use of which was not authorized. The government offensive is part of a campaign to combat online copyright infringement and piracy with the participation of several departments. Regulators in China Move to Strengthen Copyright Supervision of Online Platforms The National Copyright Administration of China (NCAC) has recently launched a campaign against copyright infringement and piracy on the internet, together with the Ministry of Industry and Information Technology, the Ministry of Public Security, and the State Internet Information Office of the People’s Republic. A major objective of the initiative is to improve copyright supervision of online businesses by investigating cases involving the sale and distribution of infringing products on short video, live broadcast and e-commerce platforms, and promptly dealing with infringing content, the agency announced in a press r...
Blogarama - Blog Directory