Breaking news: Impressive price range for Porsche IPO

US President Joe Biden again sent a warning to China that US troops would defend Taiwan in the event of an “unprecedented attack.” In the UK, the market is closed today as the country says goodbye to Queen Elizabeth II. Cryptocurrencies have fallen as investors lack strength this week while sharp moves from central banks are expected. Volkswagen has valued its Porsche division (ETR:PSHG_p) at $75 billion. Here’s what you need to know about the financial market on Monday, September 19th.

Biden and Taiwan

US President Joe Biden reiterated that US troops would defend Taiwan if invaded by mainland China, prompting another angry response from Beijing.

Biden seemed to leave no room for misunderstanding, giving the same answer to this question twice. However, a little later, the White House again considered it necessary to issue a separate statement, which said that this was Biden’s personal opinion, and not official US policy.

The US has historically avoided taking a stand on this issue while declaring its support for Taiwan in every other way.

The question of how much the US is willing to take the risk of war with the People’s Republic of China has become increasingly relevant this year as Beijing has stepped up its rhetoric over reunification with Taiwan, while the US has offered significant military aid to Ukraine.

Cryptocurrencies Fall Ahead of Central Bank Meetings

Bitcoin fell to its lowest level in 3 months earlier this week, which is likely to see significant monetary tightening around the world.

Momentum in the cryptocurrency space has waned after last week’s August U.S. inflation report sparked speculation that the Federal Reserve might raise its key interest rate by 100 basis points later this week instead of 75 basis points. Rate hikes are also expected from central banks in Sweden, Norway, Switzerland and England.

Market sentiment was not helped by the fact that the long-awaited ethereum “merger” did not lead to an immediate increase in demand for the network’s native token, ethereum. Ethereum fell 9.3% the day before to a 2-month low of $1,298.62, while Bitcoin fell 7.2% to $18,489.00.

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The US market will continue to lose at the open; VW set Porsche valuation range

Stock indices in the US will open under the influence of reduced risk appetite, continuing the fall that began last week.

By 6:20 AM ET (1020 GMT), Dow Jones futures were down 301 points, or 1.0%, while S&P 500 futures were down similarly and Nasdaq 100 futures were down 1. one%. Last week, 3 major money indices lost from 4.8% to 6.7%, which was the worst week for them in the last 3 months.

AutoZone (NYSE:AZO) will be in the spotlight today, due to report on earnings. Also in the spotlight will be shares of Volkswagen AG (ETR:VOWG) after the company announced a price range for the IPO of its Porsche division. VW is aiming for a €75bn valuation through a spin-off of a division that it hopes will free up funds and help it fund the transition to electric vehicles.

The National Home Builders Association’s monthly report is the only notable item on the economy data calendar.

In the UK, the funeral of Queen Elizabeth II

World leaders have gathered in London for the funeral of Queen Elizabeth II. The British market is closed for one day, which led to the weakening of trading in most of Europe.

However, the pound sterling continued to trade, shedding 0.4% to $1.1366, testing a 37-year low hit on Friday after disappointing August retail sales data.

These data pushed market participants to expect that the Bank of England will raise its key rate by only 50 basis points at an extraordinary meeting of the monetary policy committee this week. The pound sterling is also under pressure due to uncertainty about what direction fiscal policy will take under the new government of Prime Minister Liz Truss.

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