Policymakers, including Christine Lagarde of the European Central Bank, are facing significant uncertainty due to escalating trade tensions and shifting geopolitical dynamics, as exemplified by the European Commission and Canada imposing tariffs on U.S. imports in response to Trump administration levies. This unpredictability makes it challenging for central bankers to maintain inflation at the 2 percent target. European leaders are grappling with the changing international order and are considering increased military spending and borrowing for defense and infrastructure investments to navigate the uncertain landscape.
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Bitcoin, Ethereum, and Dogecoin Soar as "Risk On" Trade Continues
Investors are actively buying risk assets, including growth stocks, tech stocks, and cryptocurrencies, with Bitcoin (BTC) rising 2.9%, Ethereum (ETH) 5.1%, and Dogecoin (DOGE) 6.2% due to positive macroeconomic news, particularly expectations of de-escalation in the U.S.-China trade war. Bitcoin has shown to be a risk asset rather than a hedge, while Ethereum and Dogecoin face uncertainty regarding their long-term value, especially as Ethereum struggles with transaction costs and Dogecoin lacks fundamental use cases. Overall,...
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