Stocks set for another painful week as cryptocurrencies collapse

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Stocks could be set for another painful week following the spectacular collapse of cryptocurrencies which are increasingly part of traditional asset portfolios.

Stocks could be set for another painful week on fears that central banks may engineer a recession in their fight against inflation, while the spectacular collapse of cryptocurrencies is poised to add to the global market rout in equities.hitting its weakest level in 18 months on concerns of growing troubles in the unregulated industry. It steadied at $US18,350 on Sunday.P/ASX 200 Index will open 0.3 per cent lower from Friday’s close of 6474.

Australian bank shares have been slammed on worries the RBA’s more aggressive tightening would lead to a spike in bad debts, higher funding costs, and tougher times ahead in the mortgage market. while the central bank of Switzerland shocked markets with its first tightening in 15 years. The Bank of England raised its cash rate for the fifth time since December.The bond market is pricing in a contraction in the US economy. An inversion of the yield curve, where borrowing costs over two years are unusually higher than that over 10 years, has foreshadowed seven of the past eight US recessions, with no false signals, according to BCA Research.

, ahead of the minutes of its June policy meeting, when it surprised with a larger-than-expected increase to the cash rate.

 

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Typical, keep talking the market down

decreasingly, in fact

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