[Market Commentary] Broad Decline in Stocks as Stance Changes After the FOMC

Contributed on Monday, June 21, 2021⇒ This article’s shelf life is until 13:00 on June 23.

■ The biggest concern in traditional financial markets is Western inflation and the early tapering ahead the schedule!?
■ The biggest concern in the cryptocurrency industry is China’s mining regulation, among others

stock prices look broadly bearish. The Nikkei 225 futures were around 28,000 yen at 10:00 Japan time, the Dow fell 1.58% from the previous day, Germany’s DAX fell 1.78%, and the UK FTSE 100 declined 1.90% from the previous day. UK retail sales fell 1.4%, well below market expectations. The Russell 2000, a US small-business index, fell 2.17% from the previous day, and the Philadelphia Semiconductor Index decreased 2.44%.

After the FOMC, theshift in stance is affecting the market.The US 10-year yield at 1.43% is headed toward multi-month lows, and the VIX, signaling market fear, rose to 20.70, crossing the psychological threshold of 20. The previous day’s sharp drop in commodity markets spread. Precious metals are weak, and last Friday platinum’s decline was notable, retreating to January level this year.

In currencies, the dollar index rose about 0.4%, causing the euro to weaken by about 0.4%, and the pound, Canadian dollar, and Australasia currencies also weakened. Crude oil rose about 1.3%, currently trading above the 71-dollar level.

The cryptocurrency market lacks a clear direction. Bitcoin remains in the mid-30,000s, sentiment has deteriorated since last Friday, likely dragged down by the DeFi-related TITAN crash. Hash rate declines due to China's mining regulations are also a factor.

【Stocks with trading appeal】
NY crude oil
Ether
Soybeans
Platinum

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