Connect with us

Market Overview

Asian Market Update – Monday: Bitcoin surges after futures debut; Asian stocks higher on improved sentiment

Published

on

Bitcoin futures

The Big Question: How will futures trading affect bitcoin?

Bitcoin posted a huge surge on Monday morning in Asia, after futures contracts began trading on the CBOE Futures Exchange in Chicago on Sunday evening US time.

On Coinbase, the price of bitcoin gained more than $2,000 in a strong upswing to close to $16,800 before falling back slightly. At midday in Hong Kong, the cryptocurrency was still up about 9 percent to 16,670 in very active trading.

On CBOE, the front-month bitcoin futures contract surged past $17,000 on Monday morning Asian time, according to Reuters.

The debut of bitcoin futures on the CBOE Exchange marks a key step for bitcoin towards adoption in mainstream finance that could boost its legitimacy and acceptance. However, some are worried that serious fluctuations could follow now that the big boys are in on the bet.

Meanwhile, ethereum was trending up nicely during the Asian trading session on Monday. The cryptocurrency gained 3.89 percent at midday to $464 after losing about $23 in overnight trading.

Litecoin surged nearly 5 percent to $158 at midday, after losing about $9 on Sunday.

Main Market Movers – Mid-day Asian Trading Session

Indexes Value at Midday Daily Change
Japan- Nikkei 225 22,871 0.26%
China-Shanghai Composite Index 3,303 0.40%
Hong Kong –Hang Seng 28,784 0.50%
South Korea-KOSPI 2,466 0.12%
Australia-ASX 200 5,999 0.08%
S&P 500 E-Mini Futures 2,656 0.08%

Major Asian equities were pointing higher in somewhat subdued trading on Monday morning, led by gains in Hong Kong and on the Chinese mainland.

In Hong Kong, the Hang Seng Index edged up 0.50 percent to 28,784 at midday after opening flat. On the Chinese mainland, the Shanghai Composite Index also moved up 0.40 percent to 3,303.

Both Hong Kong and mainland markets have had a couple weeks of increased volatility and lower prices following tighter regulations from mainland officials. Still, recent data for foreign trade, consumer inflation, foreign investments, etc. suggested that the Chinese economy remains stable and sound, which could boost business sentiment.

Markets in Japan also moved up, though only slightly. The Nikkei 225 Index gained 0.26 percent to 22,871 before midday on Monday.

In South Korea, the Kospi was 0.12 percent higher to 2,466 at midday.

Down under, the ASX 200 was up a slight 0.08 percent to 5,999 at midday.

The S&P 500 E-Mini Futures was up 0.08 percent to 2,656.

Investors’ risk appetite appears to be improved by positive economic data out of China, Japan and other key economies, an agreement between US political parties that avoided a government shutdown, and progress in tax reform negotiations in the US, among other things.

Important events that the market is watching this week include meetings of the US Fed and the ECB, Brexit talks, NAFTA negotiations, and the first week of bitcoin futures trading.

Currencies

The Japanese yen lost 0.12 percent against the US dollar at midday Monday, changing hands at 113.58 per dollar.

The Chinese yuan firmed 0.06 percent against the US dollar to 6.6155 per dollar.

The Australian dollar added 0.17 percent on the dollar, changing hands at 1.3290 per dollar at midday.

Commodities

WTI Oil was down 0.4 percent to $57.07 per barrel.

Brent Crude was off 0.35 percent to $63.09 per barrel.

Gold was up 0.04 percent to $1,248 an ounce.

News across Asia

In China, Monday marks the 16th anniversary of the country joining the World Trade Organization, which opened the Chinese market to foreign goods and services as well as foreign markets to China. However, China has now filed a suit against the EU and the US for not granting China status as a ”market economy.”

Take away: China has pledged more market access for foreign companies, but the EU and the US are hardly satisfied. The WTO is now hearing the case filed by China, and its decision could have long-last implications for global trade.

In Japan, large Japanese manufacturing companies’ sentiment about economic conditions has improved in the fourth quarter of the year, the official Business Survey Index out on Monday showed. The BSI for large manufacturers came in at 9.7, up from 9.4 in the previous quarter.

Take away: Japanese manufacturing companies have taken a heavy hit after a series of data cheating scandals, but the latest data showed economic growth is robust, and largely held up by demand from overseas.

Featured image from Pixabay.

Disclaimer: The author owns bitcoin, ethereum and litecoin. He holds investment positions in the coins, but does not engage in short-term trading.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.3 stars on average, based on 37 rated postsFredrik Vold is an entrepreneur, financial writer, and technical analysis enthusiast. He has been working and traveling in Asia for several years, and is currently based out of Beijing, China. He closely follows stocks, forex and cryptocurrencies, and is always looking for the next great alternative investment opportunity.




Feedback or Requests?

2 Comments

2 Comments

  1. sorinmax

    December 11, 2017 at 10:42 am

    “The Big Question: How the will futures trading affect bitcoin?”
    or maybe it’s the other way around, like
    How will the futures trading

    • Fredrik Vold

      December 11, 2017 at 12:35 pm

      Updated. Thanks for pointing that out!

You must be logged in to post a comment Login

Leave a Reply

Market Overview

Market Update: U.S. Stocks Surge Ahead of China Trade Talks; Bitcoin Eyes Bullish Reversal

Published

on

U.S. stocks surged on Thursday after a senior White House official confirmed that trade talks with China will resume later this month, sparking optimism that the world’s two largest superpowers can resolve a lingering tariff dispute.

Stocks Rebound

All of Wall Street’s major indexes put up firm gains on Thursday, with the Dow Jones Industrial Average surging 396.32 points, or 1.6%, to 25,558.73. Shares of Walmart Stores Inc. (WMT) surged more than 9% after reporting its best sales growth in a decade. Boeing Company (BA) and Caterpillar Inc. (CAT) each rose 4.4% and 3.2%, respectively.

The broader S&P 500 Index rose 0.8% to 2,840.69, with all 11 primary sectors reporting gains. The consumer staples category was among the best performers, rising 1.5%. Financials stocks added 1.3% as a whole.

The technology-driven Nasdaq Composite Index finished well off session highs, rising 0.5% to 7,806.52.

A measure of implied volatility known as the CBOE VIX declined on Thursday, partially offsetting the previous day’s sharp climb. The so-called “fear index” fell 9.5% to 13.25 on a scale of 1-100 where 20 represents the historic mean.

U.S.-China Trade Talks Back On

White House economic adviser Larry Kudlow confirmed Thursday that China will send an envoy to Washington later this month to re-start trade negotiations between the two countries. Although the talks are expected to be low-level, they mark important progress in a relationship that has quickly deteriorated.

“The Chinese government, in its totality, must not underestimate President Trump’s toughness and willingness to continue this battle to eliminate tariffs and nontariff barriers and quotas, to stop the theft of intellectual property and to stop the forced transfer of technology,” Kudlow told CNBC’s Squawk Box on Thursday.

U.S. tariffs targeting $50 billion worth of Chinese goods have been implemented so far. President Trump has warned Beijing that the next round of levies will be much larger.

Bitcoin Eyes Breakout

The cryptocurrency market stabilized on Thursday, with bitcoin eyeing a bullish reversal amid reports of a new bitcoin exchange-traded note (ETN) being offered in U.S. brokerage accounts.

According to Bloomberg, the Bitcoin Tracker One ETN will be available to U.S. traders under the ticker symbol CXBTF. The ETN has been publicly traded on Nasdaq Stockholm since 2015. Technically, the ETN will be quoted as a foreign debt in U.S. over-the-counter markets.

Bitcoin’s price reached a high of 6,476.70 on Bitfinex. The leading digital currency would consolidate at $6,380 for a gain of 1.1%. As Hacked reported earlier, BTC has crossed the 50-day moving average and appears poised for further gains amid a sharp rise in momentum.

The broader cryptocurrency market was valued at $206.2 billion Thursday afternoon, with most major assets reporting 24-hour losses. Ethereum Classic was a notable exception; the cryptocurrency spiked 18% after Coinbase Consumer confirmed full support for ETC listings.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
3 votes, average: 4.67 out of 53 votes, average: 4.67 out of 53 votes, average: 4.67 out of 53 votes, average: 4.67 out of 53 votes, average: 4.67 out of 5 (3 votes, average: 4.67 out of 5)
You need to be a registered member to rate this.
Loading...

4.6 stars on average, based on 548 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




Feedback or Requests?

Continue Reading

Market Overview

Finally Fighting Back

Published

on

Hi Everyone,

Perhaps one of the most revered personalities in the crypto world is Vitalik Buterin, the creator of Ethereum. His pioneering work on smart contracts is arguably one of the most important technological advancements in the development of cryptos.

Ethereum’s co-founder Joseph Lubin recently stated on Bloomberg that he doesn’t see the current falling prices as a hindrance to growth and I have to agree with him there.

What might prove to be a hindrance though, is the sheer popularity of the Ethereum network. As we saw with Bitcoin in early December, the Ethereum blockchain is now seeing times of stress as there are more transactions than the miners can confirm in a timely manner.

This morning, Vitalik provided a 75 tweet report on the network’s multiple paths forward, including the much anticipated Casper upgrade.

The good news is that the Ethereum developers seem to have good solutions for most of the issues. Unfortunately though, the timeframe remains elusive with some experts estimating that it could take more than a year to properly scale the busy network.

Many agree that decentralized applications will play a prominent role in our daily lives in the future. Currently, Ethereum is the prevailing platform for the creation of these dApps. What’s clear today is that they will have to work very hard to keep it that way.

@MatiGreenspan
eToro, Senior Market Analyst

Today’s Highlights

  • Trump & China – Talking Again
  • Dollar Step Back
  • Crypto Also Rebounding

Please note: All data, figures & graphs are valid as of August 16th. All trading carries risk. Only risk capital you can afford to lose.

Traditional Markets

Markets are breathing a sigh of relief this morning as

The Turkish issue is still far from resolved, but it seems that Angela Merkel has been able to make some headway on the issues. In any case, this spat has roiled markets far more than it probably should have and it’s good to see things returning to some level of normality.

Asian and European markets have started out in a good mood. Let’s hope it sticks.

Dollar Pullback

Along with this positive risk sentiment, we do see some much-needed signs of weakness from the Greenback.

Most of the Emerging Markets currencies that we saw falling apart at the beginning of the week are now fighting back hard.

Here we can see the USD falling today against the Lira, Rand, and the Peso…

Even though the precious metals did continue to get hammered throughout the day yesterday and most of last night, they do seem to be rebounding this morning.

Crypto Fighting Too

Not to be left out, the crypto market also seems to have found relief in the Dollar’s pullback.

The markets are now seeing some much-needed calm after the declines of the past two weeks, which seems to have culminated with Tuesday’s plunge.

Let’s have an excellent day ahead!

This content is provided for information and educational purposes only and should not be considered to be investment advice or recommendation.

The outlook presented is a personal opinion of the analyst and does not represent an official position of eToro.

Past performance is not an indication of future results. All trading involves risk; only risk capital you are prepared to lose.

Cryptocurrencies can widely fluctuate in prices and are not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework.

Best regards,

Mati Greenspan
Senior Market Analyst

Connect with me on….

eToro: @MatiGreenspan | Twitter: @MatiGreenspan | LinkedIn: MatiGreenspan | Facebook:MatiGreenspan

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.7 stars on average, based on 122 rated postsSenior Market Analyst at Etoro.com.




Feedback or Requests?

Continue Reading

Analysis

Pre-Market: Trade War Optimism Sparks Another Bounce in Stocks

Published

on

Global stocks are markedly higher today before the US open, Donald Trump’s quite aggressive negotiating seem to be paying off, at least with regards to China, as in the wake of the pronounced weakness in Chinese assets, and the notable slowdown in the economy, the country wants to reopen the talks with the US.

Shanghai Composite, 4-Hour Chart Analysis

The Shanghai Composite hit a new bear market low overnight before recovering above support into the close, and the Dollar’s rally also ran into resistance, thanks to the Yuan’s bounce of its fresh 13-month low. Emerging market assets are also somewhat higher today, with the help of the Turkish Lira’s continued bounce, but the segment is still deeply wounded technically, and more pain is almost inevitably ahead, as the negative trends still stand.

 

DAX Index, 4-Hour Chart Analysis

Walmart’s great earnings report also fueled the pre-market rally in US futures, as the retail segment in the largest economy still seems to be doing just fine, despite the global woes. The major US indices are after an orderly looking correction, in stark contrast with their European and Asian peers, which are stuck in broader downtrends or even full-blown bear markets.

Nasdaq, 4-Hour Chart Analysis

Yesterday’s tech selloff, which was triggered by the weak report of Chinese giant Tencent has almost been erased after the better than expected numbers of Cisco restored confidence in the market-leading segment. Nvidia (NVDA) will also report after the market close, and as the earnings season is drawing to a close, we can conclude that corporate profits had a blowout quarter in the US, even as cracks in the global economy appeared.

Momentum is still clearly on the side of the FAANGS and the whole US tech sector even after discounting Facebook’s recent plunge, but should the tightening cycle of the Fed continue to drain liquidity from financial markets and should the rising trend in rates persist, we expect valuations to suddenly matter soon.

Dollar Pulls Back

Dollar Index (DXY), 4-Hour Chart Analysis

The possible resumption of the US-Chinese trade talks sparked a, so far, weak correction, which also due from a technical standpoint, with the EUR/USD pair finding support near $1.13, and with the broader Dollar Index running into resistance near the 97 level. The rally in the reserve currency is no danger by any means, as the break-out is clearly intact, but a deeper pullback would help risk-assets in the coming days.

WTI Crude oil, 4-Hour Chart Analysis

Commodities are slightly higher thanks to the relief rally in emerging markets and the dip in the Dollar, but the previously stronger crude oil is just holding up above the $65 support, while gold is clearly below $1200, and copper couldn’t get back anywhere near yesterday’s break-down level close to $2.70.

Featured image from Shutterstock

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
1 vote, average: 4.00 out of 51 vote, average: 4.00 out of 51 vote, average: 4.00 out of 51 vote, average: 4.00 out of 51 vote, average: 4.00 out of 5 (1 votes, average: 4.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.6 stars on average, based on 320 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.




Feedback or Requests?

Continue Reading

5 of 15 Seats Available

Learn more here.

Recent Comments

Recent Posts

A part of CCN

Hacked.com is Neutral and Unbiased

Hacked.com and its team members have pledged to reject any form of advertisement or sponsorships from 3rd parties. We will always be neutral and we strive towards a fully unbiased view on all topics. Whenever an author has a conflicting interest, that should be clearly stated in the post itself with a disclaimer. If you suspect that one of our team members are biased, please notify me immediately at jonas.borchgrevink(at)hacked.com.

Trending