Yesterday, a trader pressed the wrong button, sending the system into a tailspin and sending the European stock markets plunging, albeit for a few minutes. Today, on the other hand, the arrest of Jack Ma, a namesake of Alibaba’s chief executive, has led to violent sell-offs on the stock, causing a loss of 9%, which was then reabsorbed after it was confirmed that the precautionary measure did not concern the Chinese entrepreneur at all. For a total of two flash crashes in two days. Perhaps it was a coincidence, or perhaps it is yet another indication that there is some nervousness in the markets. Starting with the Fed’s decision on interest rates on Wednesday. The question is one: will it be an increase of 25 basis points or 50?

For the American Central Bank, the road seems clear for a 0.5% increase. Angelo Ciavarella, CEO of Blink Concept, explains: “The markets are already anticipating a rate hike of 50 bps: the last time it happened was in 2000. And it shouldn’t be the last. To curb inflation, which hit 8.5% in March, the highest level in 40 years, analysts expect rates, only 0% at the beginning of March, to rise to around 2.7%/2.8% by the end of the year. But the real question is: how long can rates be raised without causing an economic recession?”.

[Read more at dealflower.it]