Difficult days for finance and cryptocurrencies
They’ve been out for a few minutes i US employment dataissued by Bureau of Labor Statistics.
The appointment was eagerly awaited by all the main markets. Since yesterday, the stock exchanges have felt the tension, fueled by a very delicate general situation.
Also yesterday, the head of the Federal Reserve Jerome Powell said there could be interest rate surprises. In the next FOMC, scheduled in a few days, an increase of was assumed for certain 25 basis points; the number 1 of the FED however, it left everyone displaced, not excluding more substantial increases (probable 50 basis points).
Very aggressive monetary policies are putting a lot of pressure on the world of finance.
The main risk is always the same: the recession. The economy suffers from periods of high inflation and the consequent increase in interest rates; it can therefore fall into the degrowth trap.
Recent events in the banking sector must be added to this well-known scenario.
After bankruptcy of Silvergate Bankthe last fallen deeply connected to the crypto world, is the Californian SVB to be in trouble.
According to reports, the Silicon Valley Bank it would be in serious difficulty precisely because of the increase in interest rates, responsible for having considerably devalued the institution’s bond portfolio.
According to various sources, it seems that the bank is trying to find over 2 billion in liquidity to honor the repayments of depositors. The losses collected from the devaluation of the portfolio would well exceed one and a half billion dollars.
The stock exchanges are feeling the pinch, especially banking stocks and related to the world of finance. Cryptocurrencies are also suffering, posting quite steep losses.
Here is the US employment data
In the scenario just depicted, employment data assume even more importance.
With unemployment benefits up slightly from expectations, there was a fear of bad news.
The consensus forecast was for an unemployment rate of 3.4%, unchanged from February. The official figure is slightly worse than expected: 3.6%.
However, this is joined by a positive fact: le Nonfarm payrolls there were 311,000, definitely above the estimated 225,000. Simply put: the job market is still hot despite the Fed’s interventions. CNBC source chart.
It should be noted that in any case February showed a slowdown in the growth of jobs compared to January, even if the figure is better than expected.
Now we just have to keep an eye on the situation and see how the market takes what we just announced. Will there be a reaction or will he remain neutral, continuing to focus on the banking issue?
Who he complete report del Bureau of Labor Statistics.
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