We saw a second day of gains then losses in major US indices. The stocks first rallied on the idea that the Federal Reserve (Fed) hawks may have gone ahead of themselves with the pricing of a 50bp rate hike in March, then gave in to the bad thoughts. Nasdaq was trading almost 2% higher when the wind turned direction abruptly, sending the index below its 200-DMA. Is this the beginning of a further dive? Possible… What’s sure is Netflix will feel the pinch of lower subscription growth forecast at the open as the stock price dived 20% in the afterhours trading. Zooming out. The Fed must fight back inflation because it’s gone just too far to threaten the economic health of the country, but they can’t do it with heavily hemorrhaging financial markets. Therefore, the idea of 50bp is certainly far stretched, and the corresponding pricing should be scaled back, which should give a certain relief to the risk assets in the coming sessions. But of course, the corporate earnings must be strong, as the actual Big Tech pricing reflects a fantastic earnings growth for the coming quarters, and investors won’t settle with anything less than fireworks. Elsewhere, Bitcoin fell below $40K on the back of an overall lack of risk appetite, and the news that Russia wants to ban the use and the mining of cryptocurrencies. Are they right, are they wrong and more importantly, are we mistaken on the potential purpose of use of cryptocurrencies? Brainstorm with me!
Watch the full episode to find out more! 0:00 Intro 0:29 Netflix dives 20% after earnings announcement 2:40 Major US indices remain under selling pressure 6:59 Bitcoin falls below $40K on news Russia would ban cryptocurrencies 7:43 My way of seeing the future of cryptocurrencies (tell me yours!)
Ipek Ozkardeskaya has begun her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked at HSBC Private Bank in Geneva in relation to high and ultra-high net worth clients. In 2012, she started as FX Strategist at Swissquote Bank. She worked as a Senior Market Analyst in London Capital Group in London and in Shanghai. She returned to Swissquote Bank as Senior Analyst in 2020.
