• The Euro Area has increased interest rates to a high of 4.25%.
• The Dow Jones has mirrored the 1987 “Black Monday” with 13 consecutive positive closes.
• There is an intricate relationship between crude oil prices and unemployment rates which could cause concern.
Euro Area Increases Interest Rates
The Euro Area recently increased its interest rates to a high of 4.25%, the highest rate since 2011, in an effort to counter inflation and stimulate economic growth. This increase in interest rate is likely to have a ripple effect on the global economy as many other countries are likely to follow suit and increase their own rates accordingly.
Dow Jones Echoes 1987’s ‘Black Monday’ Era
The Dow Jones Industrial Average (DJIA) has echoed the 1987 “Black Monday” era by recording 13 consecutive days of positive closes, its longest streak since that time period. This indicates that the stock market is in good health despite recent events such as Brexit and trade wars with China, suggesting that investors remain confident about the future prospects of the markets.
Crude Oil Prices & Unemployment Rates
Due to their underlying correlation, there are complex interplays between crude oil prices and unemployment rates which may be cause for concern. As oil prices continue to rise, this could potentially lead to higher inflation levels, stifling economic growth and causing unemployment figures to rise as businesses struggle to keep up with rising costs.
Texas Heatwave Triggers Bitcoin Mining Downturn
The current Texas heatwave has triggered a downward spiral in Bitcoin mining operations due to power outages caused by overloaded electricity grids during peak times. As a result, mining companies have been forced to bear additional costs related to power usage while having their production output reduced drastically.
Bitcoin Derivatives Market Trends
The Bitcoin derivatives market is also experiencing changes due both external factors such as increasing volatility in cryptocurrency markets but also internal factors such as institutional investors entering these markets with large amounts of capital looking for returns on investment opportunities they can no longer find elsewhere due to low-interest-rate environments across much of the world economy.