Bi Weekly Market Review - Edition #5

For the period 1st - 15h Aug

Dear FOMOdrive community members,

Welcome to Edition #5 of our Bi-weekly Market Review covering market news from 1st - 15th August. If you are not too busy chasing the sun or the perfect hiking view, let us unpack the latest market updates and trends. Be sure not to skip our “Learning Corner” - it features Goldman Sachs' insights on the projected growth of AI investment in the upcoming three years.

Summary

- Jacobi Asset Management (Jacobi) has listed Europe’s first spot Bitcoin ETF on Euronext Amsterdam

- The US saw its score cut one level from AAA to AA+, echoing a move made more than a decade ago by S\&P Global Ratings.

- Spot gold prices hit a record intraday high of $2,072.5 on Aug. 7, 2020, and analysts say that prices can hit, and even push past that record.

Crypto

- Jacobi Asset Management lists Europe’s first spot Bitcoin ETF (Businesswire ,15th Aug)

- US Fed clarifies process for banks to transact in stablecoins (Reuters, 8th Aug)

- PayPal launches dollar-backed stablecoin, boosting shares (Reuters. 7th Aug)

Equities

- Global stocks fall, dollar rallies on weak China data (Reuters, 8th Aug)

- Stocks drop, Treasury yields edge up after Fitch downgrades US (Reuters, 2nd Aug)

Bonds and Interest Rates

- BOJ Intervenes for Second Time This Week to Slow Yield Spike (Bloomberg, 3rd Aug)

- Fitch’s US Credit Downgrade Sparks Criticism Along With Unease (Bloomberg, 2nd Aug)

Commodities and FX

- Dollar jumps, oil slides on China worries (Reuters,14th Aug)

- Gold Price drops on firmer Treasury bond yields, China concerns (fxstreet, 13th Aug)

- Gold prices to breach all-time highs? Some expect bullion to hit $2,500 (CNBC, 10th Aug)

- Demand for gold bars by wealthy individuals and corporates kept prices elevated in the second quarter despite a slowdown in central bank buying (FT, 1st Aug)

Learning Corner

Quote of the Day:

“The market can move for irrational reasons, and you have to be prepared for that, … you need to make big bets when the odds are in your favor — not big enough to ruin you, but big enough to make a difference.”- Bill Gross

Educational Spotlight:

AI investment forecast to approach $200 billion globally by 2025 by Goldman Sachs. If you would like to know more check it out here.

We hope you found this edition of the Bi-weekly Market Review informative and useful. As always, we welcome your feedback.

Until next time. Stay informed

The FOMOdrive Team