Asian stocks set to edge lower ahead of US Fed chair’s policy speech

Canada Investment Summit secured nearly $500 billion in new investments. Key commitments include $50 billion from CPP Investments and Brookfield, $25 billion from PSP Investments, and $10 billion from Ontario Teachers’ Pension Plan. Banks like TD, Scotiabank, and BMO pledged billions for strategic sectors. The government announced $700 million for defense and critical minerals. Prime Minister Carney highlighted Canada's investment potential.

Nasdaq futures fell as chipmakers declined due to AI slowdown concerns. U.S. inflation data showed mixed results, with core CPI rising 0.3% m/m. The Fed is expected to hike rates by 25 bps. Salesforce and Lennar are among companies with upcoming events. European and Asian markets also declined, with tech and chip stocks leading losses.

Japan's 20-year bond yield rose to 3.856% at a recent auction, signaling higher long-term borrowing costs. This could pressure leveraged Bitcoin positions if BOJ policy raises yen borrowing costs or strengthens the yen. The BOJ meets Sept. 17–18, which may influence Bitcoin's carry risk. Bitcoin's price has fluctuated recently, down 3.97% in 24 hours but up 20.35% in 30 days.

US debt surpassed $40 trillion, leading to a decline in Treasuries and the dollar. Investors shifted to Bitcoin and gold, with Bitcoin rising 23% to $77,000 and gold prices increasing. The 90-day correlation between the two assets hit multi-year highs. Options data shows strong bullish sentiment for gold and balanced sentiment for Bitcoin. Research suggests a blended allocation of Bitcoin and gold offers better risk-adjusted returns than traditional portfolios.

The first Canada Investment Summit resulted in nearly $500 billion in new investment commitments. Key participants included CPP Investments, PSP Investments, and major Canadian banks, with commitments in infrastructure, energy, and technology. The government also announced tax incentives and private investment in airports and critical sectors.

The Federal Reserve is expected to raise interest rates by 0.25% to 3.75%-4.00% on Wednesday, with a 93% probability according to traders. The focus will be on the dot plot for future hikes, inflation and growth forecasts, and Fed Chair Kevin Warsh's press conference for hints on an October hike. ETFs like SPY, QQQ, TLT, GLD, and IBIT may see volatility.