Santiago Iniesta Sánchez @Santi90: "💸 The Fed Delivers a..."

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💸 The Fed Delivers a 25bps Cut — Markets React Cautiously Amid Uncertainty This week unfolded much as expected: the Federal Reserve officially cut interest rates by 25 basis points, bringing the federal funds range down to 3.75%–4.0% 🏦. But the real surprise wasn’t the rate cut — it was the announcement that balance sheet reduction will end on December 1. This move hints at a more measured policy stance, even as Chair Jerome Powell tried to cool market enthusiasm by stressing that another rate cut in December is “far from inevitable.” 📈 As a result, yields ticked higher: the U.S. 10-year Treasury gained roughly ten basis points, settling near 4.1%, as investors recalibrated their expectations. Adding to the uncertainty, the U.S. government shutdown continues to delay key economic data releases — leaving markets flying partially blind when it comes to assessing the real health of the American economy. 🇪🇺 Europe Beats Expectations Across the Atlantic, the Eurozone GDP numbers came in stronger than anticipated, fueled primarily by exports. The encouraging growth gives the European Central Bank room to keep interest rates steady, as inflationary pressures remain under control for now 💶. ₿ Crypto Corner — Bitcoin Slides Again After a brief rebound earlier this month, Bitcoin stumbled once more — dropping 4% this week to fall back below the $110,000 threshold 🔻. Spot Bitcoin ETFs mirrored the decline, seeing over $600 million in outflows since Monday. The crypto spotlight, however, was on Strategy, a company now rated B- by S&P, placing its debt squarely in speculative territory. The downgrade reflects concerns about the firm’s liquidity risks — with $70 billion in Bitcoin holdings financed through $15 billion in debt and preferred shares, but limited cash reserves. ⚠️ S&P warned of a “monetary mismatch”: assets in BTC, but liabilities, interest, and dividends in USD — a dangerous setup if Bitcoin prices drop or capital markets tighten. The stock MSTR now trades at $273, a staggering 46% below its record high. 📊 Equities End October on a High Despite crypto turbulence, October wrapped up positively for global equities — marking the sixth consecutive month of gains in the U.S. and the fourth straight month in Europe 🟢. Next week’s focus turns to corporate earnings, with a packed calendar featuring: 🇺🇸 Palantir, AMD, McDonald’s, and Airbnb, 🇪🇺 BP, Novo Nordisk, AstraZeneca, Rheinmetall, Zurich Insurance, and Engie. However, macro visibility remains clouded by the ongoing U.S. government shutdown, now entering its fifth week, which continues to block the release of key data. Meanwhile, both the Reserve Bank of Australia and the Bank of England will meet — but neither is expected to change rates, as both economies grapple with renewed inflationary pressures. 🧭 The Bottom Line Monetary policy remains at the center of market focus 🎯. The Fed’s softer tone, coupled with solid European data and resilient equities, suggests investors are cautiously optimistic — but crypto volatility and political gridlock in Washington are keeping everyone on edge. $SPX500 $SPY (SPDR S&P 500 ETF) $NSDQ100 $QQQ (Invesco QQQ) $BTC

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SPX500

SPY

SPDR S&P 500 ETF

NSDQ100

QQQ

Invesco QQQ

BTC

Bitcoin

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