Market Turbulence Following Weak U.S. Jobs Report and Surprise Rate Hikes in Japan

Aug 7, 2024 · 12m 11s

Description

Several unexpected events during the first week of August led to big moves in the markets In brief: - Surprise Interest Rate Rise: The Bank of Japan started raising rates...

Several unexpected events during the first week of August led to big moves in the markets

In brief:

Surprise Interest Rate Rise: The Bank of Japan started raising rates in an unexpected move after keeping them very low for a long time
Weak Jobs Report: An unexpected US jobs report on Friday triggered the ‘Sahm Rule’ rule, seen as an indicator of potential recession when the unemployment rate rises >0.5% in a 3-month period
Equity markets reacted negatively: On Monday, markets plunged, especially in Japan which at one point was down 20% in local currency terms, in what appeared to be an unwind of the yen carry trade.

Find out what happened, why and what it means now.

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