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On August 26, Ukraine reported that its armed forces attacked a large oil refinery in Russias Volga region. This is the latest in a series of attacks by Ukraine on Russias oil refining industry. The General Staff of the Ukrainian Armed Forces issued a statement saying that the attack caused a fire at the refinery near Nizhny Novgorod. The statement also said, "Operations against key enemy targets are ongoing." The Norsi refinery, with a designed capacity of approximately 340,000 barrels per day, is one of Russias largest refineries. Located about 440 kilometers from Moscow, it primarily supplies fuel to the Russian capital and surrounding areas, which is also Russias largest fuel-consuming region.German Interior Minister: We want to develop genuine intelligence services, and those who attack us must be prepared to retaliate.On August 26, 2026, witnessed by the heads of state of China and Jordan, the National Data Administration of China and the Ministry of Digital Economy and Entrepreneurship of Jordan signed a Memorandum of Understanding on Strengthening Cooperation in the Digital Economy. Both sides will further deepen practical cooperation in the digital economy field, continuously enrich cooperation mechanisms, explore new growth points, and help upgrade and stabilize bilateral digital economy cooperation.On August 26, a severe flash flood struck Rasuwa district in Bagmati province, northern Nepal, inundating villages, markets, and infrastructure. According to data released by the Nepal Tourism Board on the 26th, preliminary statistics indicate that the flood has caused at least 16 deaths and left 384 tourists missing, including 93 Nepalese tourists and the remainder foreign tourists. Currently, the main preliminary explanation offered by scientists for the sudden event is that an ice avalanche blocked the Runde River, forming a temporary dam that suddenly collapsed after water accumulated. However, the specific cause still requires further investigation. Due to damage to some roads, bridges, communication and power facilities, coupled with still high water levels in the mountains, the full extent of casualties and property damage caused by this major disaster is yet to be determined. Saloni Muralka, a Nepalese national, said, "From what we understand, this flash flood in the China-Nepal border region may be the largest in decades. We have been told that the flood may be related to the melting of high-altitude glaciers."German Finance Minister: Income tax reform will be proposed at the next cabinet meeting.

What is the impact of the Fed’s interest rate cut?

LEO

Oct 25, 2021 13:27

What impact will the Fed's interest rate cuts bring to the global capital market? 

1) US stocks: short-term positive, but the US stocks still have adjustment pressure.  But the long-term trend of US stocks depends on the extent of the recession.

 2) US debt: support the bull market . The trend of 10-year US Treasury interest rates is basically the same as the rhythm of interest rate cuts, but will react in advance.

 3) US dollar: bearish dollar index. The main factor affecting the US dollar index is the relative strength of the US economy with other major countries, especially the Eurozone. The current cycle of the US economy lags behind other countries. In the future, as the US economy accelerates and the Eurozone enters the bottoming stage, the US dollar will have depreciation pressure, and the Fed’s expected interest rate cut will cause the US dollar to depreciate earlier.

 4) Gold: may caused the price of gold to rise, bull market can be expected. The price of gold is affected by the risk aversion and the US dollar.Also, the depreciation of the US dollar is good for gold. On the other hand, the safe-haven value of gold will be greatly reduced compared to the previous rounds of interest rate cuts. 

5) Emerging market stocks: short-term positive, long-term trend depends on economic conditions. The depreciation of the dollar will bring capital inflows to emerging markets, but the long-term trend of the stock market depends on the state of the economy.


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