The market is never buying the rate cut itself, but rather the moment when the expectations of the rate cut are rewritten.
The surge yesterday seems to be the result of the December interest rate cut, but the underlying drivers are actually two things coming together: One is that the probability of a rate cut in December has suddenly been re-evaluated; Another is that Old Trump directly cools down the policy towards China; So, the market is not pricing in a rate cut in December, nor is it pricing in geopolitical factors, but rather it is pricing in the liquidity inflection point in 2025. #Gate广场圣诞送温暖
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The market is never buying the rate cut itself, but rather the moment when the expectations of the rate cut are rewritten.
The surge yesterday seems to be the result of the December interest rate cut, but the underlying drivers are actually two things coming together:
One is that the probability of a rate cut in December has suddenly been re-evaluated;
Another is that Old Trump directly cools down the policy towards China;
So, the market is not pricing in a rate cut in December, nor is it pricing in geopolitical factors, but rather it is pricing in the liquidity inflection point in 2025. #Gate广场圣诞送温暖