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Asian Market Update – Thursday: Asian Markets Brush Off Trump Threats of Shutting Down US Government, Pulling From NAFTA

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The Big Question: Have Asian markets gotten used to Trump comments that would normally lead to market crash?

Also read: Trump Talks Up Border Wall as Congress Eyes Sept. 30 Budget Deadline

Major equity markets in the Asia Pacific on Thursday brushed off a speech by US President Donald Trump that is full of risks that investors tend to avoid from a government closure in the US to withdrawal from a major trade deal.

Most major indexes in Asia Pacific were up in early trading, while the stock markets in Tokyo and Shanghai were down just slightly.

The Hong Kong Hang Seng Index edged up 0.37 percent to 27,485.87, though the gain was trimmed down from earlier in the morning when the index was slightly above the 27,600 levels.

The Hong Kong Stock Exchange resumed trading on Thursday, after it was suspended on Wednesday due to a severe typhoon. There has been no reports so far as to how the halt impacted the market, but the gain on Thursday suggest investors were happy back at it.

In South Korea, the KOSPI Index was up 0.41 percent at 2,376.06. The gain came after the rogue leader in North Korea ordered on Wednesday its nuclear forces get ready for war any time.

Down under, the ASX 200 gained a modest 0.07 percent to 5,741 before midday.

In Japan, the Nikkei dropped about 0.35 percent to 19,368 before midday after it shot up higher in early hours of the Asian trading session.

In China, the Shanghai Composite Index was down 0.17 percent to 3,282.

The mixed performance, with most major Asian indexes up, suggests that investors in Asia did not really care too much about what Trump said or at least they didn’t let it affect their decisions.

During a speech in Phoenix, Arizona, Trump causally mentioned that he is willing to shut down the US government to get funds for a border wall between the US and Mexico and said that he will “probably” end up terminating the North America Free Trade Agreement.

Any of these comments, had it come from another more serious president, would have led to a catastrophe in markets not just in the US, but across the globe.

Here is what to watch out for: Let’s face it, not many people take Trump’s threats too seriously anymore, but the comments could exacerbate domestic political turmoil even within Trump’s Republican Party. This is important because the US lawmakers and Trump need to agree on a budget before the end of September to keep the US government open and negotiate a deal on raising the debt ceiling to keep the US from default. Watch how lawmakers respond to Trump’s comments.

Main Market Movers – Midday Asian Trading Session

Indexes Value at Midday Daily Change
Japan-Nikkei Stock Average 225 1,9368 -0.35%
China-Shanghai Composite Index 3,282 -0.17%
Australia-ASX 200 5741 0.07%
India-Mumbai Sensex 31,575 0.03%

Cryptocurrencies

Meanwhile, in the world of virtual currencies, trading seemed to be quite stable during the Asian trading session, with Bitcoin and Ethereum both down just slightly.

Bitcoin was down 0.12 percent before midday, trading at around $4100.

Ethereum was trading at around $315, down 0.31 percent.

Currencies

The Japanese yen dropped a slight 0.14 percent against the US dollar at Midday on Wednesday. The JPY/USD rate was at 0.009163.

The Chinese yuan remains unchanged against the dollar.

The Australian dollar is slightly down against the US dollar. AUD/USD was trading at 0.78990, down 0.05%.

Commodities

WTI Oil is unchanged for the day, trading at $48.35 per barrel.

Brent Crude gained 0.10 percent to $52.55 per barrel

Gold was down 0.08 percent to $1,289.38 an ounce

Business News across Asia

In China, top government officials have come out to reaffirm their support for Chinese company’s that invest overseas, after reports of China further cracking down on what officials believe to be “irrational investments.” China’s Ministry of Commerce on Thursday said it supports companies that want to expand overseas and ensure the process will be “stable and long-term.”

Though the government has repeatedly said it supports capable companies to investment in overseas assets, it has kept a tight leash on certain deals, including real estate, entertainment and sports teams in the US.

Take away: Those who worry about China buying up everything in their country can relax a bit, as the Chinese government is now keeping a close eye on this to ensure more capital stays within the country.

In Japan, traders are to a large extent keeping their eyes on the upcoming Fed meeting in Jackson Hole, Wyoming on Friday.

Take Away: In lack of major economic news out of Japan, the Jackson Hole meeting will be the dominant force driving both the JPYUSD rate and Japanese equities.

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.

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4.3 stars on average, based on 34 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.




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Altcoins

Selloff Resumes: Cryptocurrency Market Heads for Weekly Loss After Friday Tumult

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Cryptocurrency prices fell hard on Friday, with EOS hitting its lowest level in 60 days as bear-market pressures re-emerged following days of stable trading ranges.

Coins See Red

Cryptocurrency prices were down across the board, with major altcoins like EOS and Ethereum falling double digits percentage-wise. EOS reached a session low of $9.30, its worst reading in two months, following a botched mainnet launch that has yet to be resolved.

Ethereum prices are down more than 10% at $477. Ether bottomed around $468 earlier.

Bitcoin is currently testing four-month lows after being rejected several times at $6,800, a key inflection point for the digital currency. As Hacked reported Thursday, bitcoin’s rejection at that level was a strong sign that the recovery was losing steam. BTC/USD reached a low of around 6,092.38 on Friday, according to CoinMarketCap.

Bitcoin was last down more than 7% at 6,210.

Nearly every coin ranked in the top-100 by market cap was down compared with 24 hours ago, with the only exception being Game.com, a lesser-known altcoin.

The cryptocurrency market cap plunged by more than $30 billion to $257 billion. It had spent most of the week above $285 billion. Total trade volumes have averaged $14.1 billion over the last 24 hours.

Bearish Cycle Continues

While there was no immediate catalyst for the Friday selloff, the pullback is likely a continuation of the bearish cycle that re-emerged last month. The market has formed a new bottom in the wake of last week’s $60 billion selloff, a sign that bearish pressure is likely to remain.

Contrary to some reports, the recent cyber attack on Bithumb is not the cause of the recent price shakeup. Although the market dipped initially following reports of the breach, it recovered just as quickly and continued higher.

That said, the attack did catch the attention of financial watchdogs across the Asia Pacific region. On Friday, Japan’s financial regulator
ordered several digital currency exchanges to improve their anti-money laundering practices.

The order from Japan’s Financial Services Agency (FSA) led bitFlyer, the country’s largest crypto exchange, to suspend the creation of new accounts as it beefed up its standards.

South Korea’s financial regulators have also stated they will expedite the creation of new cryptocurrency laws following the recent attack. According to various reports, new legislation could be on its way in a matter of months.

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.

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4.6 stars on average, based on 462 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.




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Analysis

Crypto Update: Bitcoin Plunges Below $6500 as Heavy Selling Resumes

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The cryptocurrency segment is having another very negative day after a calmer period, as selling pressure intensified yet again. All of the major coins turned sharply lower, with the laggards of the recent period, Litecoin, Monero, and Dash confirming their downtrend and the relatively stronger coins also taking a beating.

The total capitalization of the segment dropped below $270 billion, and from a long-term technical standpoint, several currencies are in precarious positions. With no clear news catalyst behind the move, technicals are playing a very important role, and last week’s lows will likely be in focus in the coming days.

BTC/USD, 4-Hour Chart Analysis

Bitcoin is still relatively weak both on the short- and long-term time-frames, and it dropped back to the $6275-$6500 zone that has been acting as primary support during the recent leg lower. Given the importance of the long-term zone between $5850 and $6000, a break below $6275 could set up a crucial test in the coming days. For now, traders still shouldn’t enter new positions, while investors should hold on to their coins as the bullish secular trend is still intact.

No Hiding From the Selloff as Altcoins Broadly Lower

LTC/USD, 4-Hour Chart Analysis

With the weakest coins leading the way lower again, new swing lows are likely in the majority of the coins, although there is still hope for bulls that a major long-term breakdown can be avoided. Ethereum fell below $500 after touching the declining short-term trendline, and it remains in a bearish trend, even as it’s still in a much better technical position compared to BTC, holding up well above the April lows, and being further away from last week’s swing low as well.

ETH/USD, 4-Hour Chart Analysis

 That said, we remain negative regarding the short-term outlook for the second largest coin, and traders shouldn’t enter new positions here.  Above the $500 level, strong resistance is ahead between $555 and $575, while primary support is found at $450, with further zones near $400 and $480.

BNB/USDT, 4-Hour Chart Analysis

There are no real hiding places for crypto investors from the current selloff even as Binance Coin is still holding up relatively well, within a clear uptrend and above crucial technical support.  That said, as we warned before, given the broad downtrend in the segment, traders should be cautious with new short-term positions.

Featured image from Shutterstock

Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

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.

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4.6 stars on average, based on 279 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.




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Analysis

Crypto Update: Coins Drift Sideways as Trading Activity Plunges

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Liquidity dried up in the cryptocurrency segment in recent days, as trading volumes have been declining progressively, while the major coins got stuck in tight ranges. Only a few coins show signs of activity, and the bearish short-term patterns continue to dominate the market. With a group of currencies, namely Litecoin, Monero, Dash, and Bitcoin itself clearly dragging the segment down, the short-term trend will likely continue, as the previous leaders are now showing strength either.

While all of the top digital currencies are showing some gains today, and the total value of the market edged close to $290 billion, major resistance levels are still towering above. The fact that the effect of the Bithumb hack faded away quickly is a positive here, but until signs of bullish momentum and a clear leadership forming, the short-term outlook remains bearish.

BTC/USD, 4-Hour Chart Analysis

Bitcoin continues to trade near the $6750 level, edging ever closer to the declining short-term trendline, in a bearish consolidation pattern. Bulls would need a sustained move above $7000 to negate the declining trend, but for now at least a test of last week’s lows is likely with a possible move towards the key long-term zone between $5850 and $6000.  The short-term zone around $6350 level provides support, while further resistance is ahead near $7350.

Ethereum Nears Trendline as ETC Attempts Breakout

ETH/USD, 4-Hour Chart Analysis

Ethereum has been among the strongest coins in the last few days again, and coupled with its long-term relative strength, the second largest coin is still the best candidate to lead a recovery. That said, the coin still faces strong resistance between $555 and $575, and bullish momentum is suspiciously weak. Primary support is found at $500 with further zones near $450 and $400.

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic has been positively diverging compared to the rest of the market, together with Binance Coin, and to a lesser extent Tron ever since its inclusion to Coinbase, and the coin moved above the key $16 resistance yesterday in late trading.

While ETC is slightly overbought from a short-term perspective, a consolidation above $16 and a subsequent move higher could confirm a trend change. For now, the short-term trend signal is only neutral, and traders should remain cautious given the broad downtrend in the segment

Featured image from Shutterstock

Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

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.

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4.6 stars on average, based on 279 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.




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