Global stock markets plummeted following Trump's Fed statement: analysis

Global Markets in Flux: A Rollercoaster Ride Amidst Uncertainty

In a series of events that have sent shockwaves through the global financial landscape, investor concerns about regulatory independence and increased volatility have taken centre stage. This turmoil, sparked by recent developments, has left its mark not only on U.S. markets but also on Asian and European markets.

The U.S. markets opened on a negative note, with the Dow Jones falling by a mere 0.01%, the S&P 500 by 0.05%, and the NASDAQ by 0.12%. Meanwhile, the U.S. Dollar Index (DXY) initially rose but later showed a decline (-0.21%).

Oil prices have taken a hit due to geopolitical uncertainty, imminent implementation of tariffs on India, and anticipation of the release of the U.S. oil reserves report. As a result, the price of October WTI crude futures decreased by 1.69% to $63.70 per barrel, while the price of October Brent crude futures fell by 1.58% to $67.71 per barrel.

Asian markets were not immune to the sell-off, with the Nikkei 225 falling by 1.10% in Japan, the Shanghai Composite (-0.39%), and the Hang Seng (-1.18%) closing in the red. Only the SZSE Component showed a 0.26% increase.

European markets were under pressure, with the FTSE 100 (-0.45%, UK), DAX (-0.31%, Germany), CAC 40 (-1.42%, France), and Euro Stoxx 50 (-0.78%) showing declines. The Bitcoin (BTC) price also declined by 1.18% and reached a seven-week low. Ethereum (ETH) followed suit, falling by 2.97% to $4,479.74 per coin.

The dollar's exchange rate has seen a significant shift in Kazakhstan. On July 17, the dollar's exchange rate was 532.74 tenge. After that, the dollar began to appreciate, and on July 30, the dollar's exchange rate in exchange offices exceeded 550 tenge. The official exchange rate of the National Bank as of August 26 is 535.99 tenge per dollar. At the close of trading on the Kazakhstan Stock Exchange (KASE), the dollar's average weighted exchange rate was 533.87 tenge, down by 2 tenge. In Astana exchange offices, the U.S. currency is bought at an average of 533.87 tenge and sold at 538.88 tenge, while in Almaty exchanges, the average dollar exchange rate is Purchase - 534.79 tenge, Sale - 536.78 tenge.

Analysts from the Association of Financial Organizations of Kazakhstan (AFO) predicted that by the beginning of September, the dollar rate would be at 541.7 tenge, and in a year - 573.0 tenge. This prediction could be linked to the decline in U.S. markets, which is linked to President Donald Trump's abrupt dismissal of Federal Reserve member Lisa Cook, accused of mortgage fraud.

The dismissal has sparked concerns about the Federal Reserve's independence and financial market stability, causing global stock markets, including those in Germany and the Eurozone, to open on the negative side. Gold futures rose by 0.08% to $3,420.15 per ounce due to increased demand for more stable financial instruments amid uncertainty about the independence of the Federal Reserve following Trump's statements.

However, all is not doom and gloom. Volatility in European markets may be linked to proposals by the French Prime Minister to cut government budget spending, with a vote scheduled for September 8. This could potentially lead to a recovery in European markets.

In Kazakhstan, analysts suggest that Kazakhstanis have "lost interest" in dollars. This trend could be a result of the appreciation of the dollar, making it less attractive for everyday transactions.

As we navigate these uncertain times, it is crucial to stay informed and adapt to the ever-changing financial landscape. The global markets are a rollercoaster ride, and it is essential to hold on tight and ride the wave.