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Risk Assets Rise Sharply as Traders Look Past Economic "Cracks"

A red-hot crypto rebound cools. Also, a less hawkish Federal Reserve sparked the greatest coordinated rebound in equities, bonds and credit markets last week. However, the mood in Asia remains divided, with investors still seeking more indications of a sustained recovery in China.

November 6, 2023

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While crypto has mostly ignored the FTX scam, court records indicate an unsettling fallout from the case that weakens a fundamental selling point of digital currencies, leaving Sam Bankman-Fried with little choice but to relocate for the foreseeable future.

Stocks Jump, Dollar & Yields Drop

Global stock indexes rose sharply; the dollar dropped to a six-week low, and benchmark 10-year US Treasury yields fell to five-week lows on Friday due to the growing consensus that the Federal Reserve has completed its rate-hike cycle and will soon begin cutting rates.

Wall Street continued to rack up accolades, with the S&P 500 marking its best week in nearly a year.

The market's "fear gauge" — the VIX index — recorded its largest five-day decline in 21 months.

The yield on the 10-year Treasury note marked its greatest three-session drop since the start of the pandemic as Treasuries rose across the curve. The dollar dropped by about 1%. Two North American indices showed a decrease in how risky it is to lend money.

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