Cryptocurrency analysis firm QCP Capital has released its latest market assessment, highlighting a significant rally in risk assets fueled by various economic factors.
QCP Capital Shares What to Watch in the Coming Week
The primary driver of this surge was the People’s Bank of China’s (PBoC) stimulus package aimed at boosting the Chinese economy. This, coupled with the Federal Reserve’s announcement of a 50 basis point rate cut, has created a positive sentiment in global markets.
In Japan, political developments have also played a role in shaping market expectations. The potential appointment of Ishiba, a vocal critic of the Bank of Japan’s ultra-loose monetary policies, as the new Prime Minister has led to a shift away from the central bank’s low interest rate stance.
The Core Personal Consumption Expenditure (PCE) index, the Fed’s preferred inflation gauge, came in softer than expected, further reinforcing market expectations of a potential 50 basis point rate cut at the upcoming Federal Open Market Committee (FOMC) meeting.
Looking ahead, QCP Capital is focusing on upcoming labor market indicators, including the Job Openings and Labor Turnover Survey (JOLTs), ADP Employment Report, and the U.S. unemployment rate. Strong performance in these areas could strengthen the case for a larger rate cut in November, providing further support to risk assets.
