QCP Capital: Asset prices may continue to fluctuate before the policies of the Federal Reserve and the Bank of Japan become clear
ChainCatcher message, QCP Capital report indicates that the macro market rebounded significantly today, with the Japanese stock market rising 9% after a 12% drop yesterday. U.S. futures also signaled a potential rebound following the U.S. ISM data showing expansion in the services sector in July.
Although the VIX index has retreated from yesterday's peak of over 65, it remains above 30. Asset prices may continue to fluctuate before the policies of the Federal Reserve and the Bank of Japan become clear, and the market is expected to remain calm. It is anticipated that Bank of Japan Deputy Governor Uchida will release important updates on Wednesday at the Federal Reserve's Jackson Hole meeting (August 22-24).
Regarding rumors of an emergency rate cut, it is considered unlikely, as this would severely damage the Federal Reserve's credibility, exacerbate market panic, and further deepen expectations of an impending economic recession.