Chinese news boosts sentiment, risk appetite significantly warms up, Bitcoin approaches $98,000.

Author: Bao Yilong

Source: Wall Street Journal

With China lowering its reserve requirement ratio and interest rates, and confirming trade talks with the United States, risk appetite has surged. Asian stock markets have risen, and futures prices for iron ore, steel, and other commodities have increased. With risk aversion fading, expectations for a Federal Reserve rate cut this week have further diminished, the dollar has strengthened, and gold has plummeted during the Asian trading session.

周三上午9时,国新办举行新闻发布会,中国人民银行行长pan功胜同时宣佈降准降降interest ,将下调金融机构deposit 准备金率0.5个百分点,并下调策略interest rate 0.1个百分点,从目前的1.5%下调到1.4%,同时下调房公积金interest rate 0.25个百分点。 Earlier today, the Ministry of Foreign Affairs said that He Lifeng, vice president of the Yuan Yuan, will be in Switzerland from May 9 to 12, ** He Lifeng's deputy is in Switzerland, ** He Lifeng's deputy is a member of the United States and the United States.

Ray Attrill, head of foreign exchange research at the National Australia Bank, stated: "This indicates that both sides may have the willingness and enthusiasm to hold a high-level meeting, so I think this is definitely a positive signal. This is clearly beneficial for the Asian foreign exchange market." The Federal Reserve will hold a meeting later on Wednesday to determine interest rates, with expectations for a rate cut diminishing. Investors believe there is almost no chance the Fed will take action on Wednesday, with the likelihood of a rate cut in June at only 33%, down from 64% a month ago.

Investor trading sentiment is heating up, with prices of risk assets rising across the board. Bitcoin jumped 3% at the opening of the Asian session, while Ethereum's increase even soared above 4% at one point. Safe-haven assets, on the other hand, showed significant weakness, with gold dropping more than $40, falling below the key level of 3400. The Swiss franc and Japanese yen depreciated by nearly 0.6%.

Asia-Pacific stock market:

• Optimism drives the Asia-Pacific stock market higher, with the MSCI Asia Emerging Markets up 0.4%. The Korea Composite Index rose over 0.5%, the MSCI Vietnam Index increased by more than 0.4%, and the FTSE Malaysia Index rose nearly 0.3%.

Currency Market:

• Tariff news is favorable, while expectations for a Federal Reserve interest rate cut have significantly decreased, causing the US dollar index to rise nearly 0.3% during the Asian trading session.

• Bitcoin's Asian market opened with a surge of 3%, approaching $98,000, before the increase fell back to 2%.

Commodities:

• Risk aversion eased, and during the Asian trading session, gold dropped by $40, falling below the $3400/oz threshold, with a daily decline of over 2% at one point. As of the time of writing, the decline has narrowed to 1.2%.

• The previous tariff turmoil has harmed macroeconomic sentiment. As China and the United States move forward with trade talks, commodity futures such as cotton, soybeans, wheat, and iron ore have all shown varying degrees of increase. CBOT soybeans, corn, and wheat have all risen more than 1%.

• International crude oil prices continued the overnight rebound trend, with WTI crude oil rising over 0.63% and Brent crude oil up 0.50%. Natural gas surged by 2%.