Connect with us

Market Overview

Asian Market Update – Thursday: Bitcoin on fire; Asian stocks mixed on increased risks

Published

on

Bitcoin on fire

The Big Question: Where will bitcoin end the year?

Bitcoin posted yet another extreme surge yesterday, with the gains continuing in early trading on Thursday. Bitcoin climbed from about $12,664 at midnight on Wednesday all the way to $14,376 at 8 AM in Hong Kong, reaching a fresh all-time high in a strong way and on high volume. At midday in Hong Kong, the price of bitcoin was up about 1 percent for the day to $14,280.

With the $10,000 price target for bitcoin for the end of the year already put to shame, many are now wondering where the digital gold will close the year.

Ethereum surged back on Thursday morning after a relatively steep fall overnight. As of midday, the cryptocurrency was up 3.15 percent to $446. Though that’s still well below its all-time high, it makes for a solid comeback from the losses seen over the past few days.

Litecoin gained 2.04 percent to $102.05, after dropping below $100 and reaching a low of $98 early in the morning.

Main Market Movers – Mid-day Asian Trading Session

Indexes Value at Midday Daily Change
Japan- Nikkei 225 22,457 1.27%
China-Shanghai Composite Index 3,277 -0.50%
Hong Kong –Hang Seng 28,259 0.12%
South Korea-KOSPI 2,463 -0.45%
Australia-ASX 200 5,980 0.58%
S&P 500 E-Mini Futures 2,637 0.12%

Major Asian equity markets moved higher on Thursday morning, with indexes in Tokyo, Hong Kong and Sydney erasing some earlier losses and indexes in Shanghai and Seoul pointing lower as of midday.

In Tokyo, the Nikkei 225 Index edged up 1.27 percent to 22,457 before midday on Thursday. The gain offset a big chunk of the 1.93 percent loss on Wednesday.

In Hong Kong, the Hang Seng Index turned positive on Thursday morning, gaining a slight 0.12 percent to 28,259 before midday. At market close on Wednesday, the Hang Seng was down 2.14 percent, marking its biggest single day drop so far this year.

Down under, the ASX 200 tacked on 0.58 percent to 5,980 at midday. The index also erased a 0.4 percent loss at the end of session on Wednesday.

The S&P 500 E-Mini Futures was up 0.12 percent to 2,637.

However, markets on the Chinese mainland and South Korea continue to stumble on Thursday morning.

The Shanghai Composite Index lost 0.50 percent to 3,277.

In South Korea, the Kospi also lost 0.45 percent to 2,463 at midday.

Lower risk appetite among investors continue to weigh on indexes across Asia. Investors are looking at developments on the US, a potential shutdown of the US government if a budget can’t be passed soon, and tensions on the Korean Peninsula.

In addition, investors are also watching economic growth and corporate earnings at the end of the year.

Turmoil in the Middle East also intensified after US President Donald Trump announced a decision to recognize Jerusalem as the capital of Israel on Wednesday, and possibly move the US embassy from Tel Aviv to Jerusalem. The announcement prompted immediate backlash from both the Arab world and European leaders. Analysts say the move could result in further conflict in the already highly volatile region.

Currencies

The Japanese yen lost 0.14 percent against the US dollar at midday Thursday, changing hands at 112.44 per dollar.

The Chinese yuan was flat against the US dollar at 6.6138 per dollar.

The Australian dollar lost 0.14 percent on the dollar, changing hands at 1.3237 per dollar at midday.

Commodities

WTI Oil was up 0.3 percent to $56.12 per barrel.

Brent Crude gained 0.33 percent to $61.43 per barrel.

Gold was up 0.02 percent to $1,263 an ounce.

News across Asia

In China, an IMF report released on Wednesday said that China should focus more on financial stability rather than growth objectives, noting lack of coordination and inadequate systemic risk analysis. The PBoC on Thursday pushed back on the findings, saying that the IMF report does not paint a full picture of the conditions and claimed that China is able to fend off risks.

Take away: As the Chinese economy continue to slow down and financial risks are mounting, the Chinese government has been under heavy pressure to both boost growth and contain financial risks, a difficult balancing act in China.

In North Korea, a US-South Korea military drill that saw bombers fly over the Korean Peninsula on Wednesday has drawn strong criticism from the North. According to the North Korean foreign ministry, these actions by the US and South Korea make war “inevitable.”

Take away: Threats from the North are common, but the risk of a devastating war is still higher than ever on the Korean Peninsula.

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?

Market Overview

Brand New Crypto Economy

Published

on

Hi Everybody,

It’s not the first time that Venezuelan President Nicolas Maduro is restructuring the Venezuelan economy but it might be the most significant update so far.

With the economic crisis in Venezuela reaching levels that some are calling a humanitarian disaster, and inflation projected to reach 1,000,000% by the end of the year, President Nicolas Maduro is now turning to crypto to try and stabilize the situation.

This announcement might not be getting enough attention in the mainstream media but it certainly is turning a few heads in the crypto space.

Because the Venezuelan national cryptocurrency known as the Petro is pegged to the price of oil, the government’s hope is that it will provide a backstop to the new version of their currency, the Sovereign Bolivar.

The old Bolivar was a bit of a mess because it carried an official exchange rate of 10 Bolivar’s to the Dollar, whereas the actual rate on the street was more like six to eight million Bolivars to the Dollar.

Several reports have indicated that the new structure represents a massive devaluation of the Bolivar. However, those headlines might be misleading.

As each Petro is supposed to be pegged to a barrel of oil, one Petro should be worth about $60, so the new minimum wage of half a Petro a month is about 3000 times the current minimum wage, which is about $1 per month.

The main problem with this plan is that we still have no way of verifying that each Petro represents one barrel of oil. Should the Venezuelan Government wish to provide this level of transparency, it would be rather simple using the Ethereum blockchain. But alas, Maduro chose to use the less transparent NEM network for the Petro and therefore we have no choice but to hang on his two words that were prevalent in his Friday night announcement…

“Trust Me”

@MatiGreenspan
eToro, Senior Market Analyst

Today’s Highlights

  • Don’t Skip This Part
  • Fed Meeting Incoming
  • Brand new Crypto

Please note: All data, figures & graphs are valid as of August 20th. All trading carries risk. Only risk capital you can afford to lose.

Traditional Markets (Don’t Skip this Part)

Sure, most of you are probably reading these daily market updates strictly for the crypto part. However, it is my strict belief that it is impossible to understand the economics of cryptocurrencies without understanding the traditional markets that provide the backdrop.

For example, last week we saw some rather unusual drama surrounding Turkey, which did seem to spill over into other markets, including cryptocurrencies.

In this graph below we can see the Turkish Lira (red) starting to slide on August 9th. If was soon followed by the Dow Jones (Green), which opened with a gap down on Friday the 10th. Then you can see Ethereum (purple) plunging on Saturday and gold (yellow) marking new lows by Wednesday the 15th.

Now, normally a crisis in Turkey shouldn’t have much of an effect on any of these other markets. However, due to the severity of the slide and the sudden nature, it seems that it did catch many traders off-guard.

However, we can see that on Friday the 17th, the Lira took another sudden dive, this time the other markets were more prepared and therefore unaffected.

This morning, the stocks seem to be doing well and yet crypto-assets are struggling, and emerging market currencies still haven’t taken much of a direction. This as the US Dollar has begun the week on a stronger foot ahead of an important Fed meeting that will take place on Thursday and Friday.

Brand New Crypto

eToro is pleased to announce that we’ve added our 12th digital asset to the number one social investment app.

You can now find IOTA among the 2000+ markets that you can easily add to your eToro investment account. (This is not investment advice)

As always, let me know if you have any questions, feedback, or further insight. I’m always happy to hear it.

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,

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: Turkey Back in the Crosshairs Amid Sanction Threats

Published

on

The “red-bar-green-bar-madness” continues in global stock markets, as after yesterday’s rally, today the major markets are all in the red once again. Emerging market woes are still feeding the bearish narrative, with the Turkish Lira being back in the center of attention. The currency which enjoyed a three-day relief rally slid lower following threats regarding further retaliatory US sanctions, should turkey keep Pastor Brunson in custody.

USD/TRY, 4-Hour Chart Analysis

The diplomatic troubles only add to the problems of the country, while also helping the rhetoric of the Turkish leadership that focuses on a western “attack” on the nation. With the vague budget plans in mind, the endgame for the Lira still seems ugly, even as at the current levels, strong Turkish companies can offer great bargains for a long-term investment portfolio.

DAX Index, 4-Hour Chart Analysis

The divergence between the US and the rest of the world seems to be getting wider by the day, as the Shanghai Composite closed on a fresh bear market low, while most of Asia is also stuck in short-term downtrends, while Europe is looking wounded too from a technical perspective. The main US indices, on the other hand, are still near their all-time highs, and today’s selloff is also just a small blip in the ongoing uptrend.

S&P 500, 4-Hour Chart Analysis

On a slightly negative note, the Nasdaq has been underperforming the broader market ever since Tencent’s earnings miss on Wednesday, and today, it’s also the worst performing benchmark on Wall Street in the wake of Nvidia’s (NVDA) lackluster guidance that came out yesterday after the closing bell.

Today’ session could still go either way in the US, as the overnight losses are moderate, and yesterday’s trade war optimism could still fuel a recovery in the worlds strongest stock market, even amid the deepening emerging market crisis.

Forex Markets Stable As Dollar Consolidates

Dollar Index (DXY), 4-Hour Chart Analysis

The Dollar is consolidating just below its recent 13-month highs, with the EUR/USD pair rebounding to 1.14, and the broader Dollar index settling down near 96.5. The reserve currency is still clearly in a rising trend, and as the short-term overbought momentum readings are almost cleared, the rally could soon continue, especially if risk-off sentiment remains dominant outside of the US.

Copper Futures, 4-Hour Chart Analysis

Commodities are virtually unchanged before the US open, with gold still hovering just above its 17-month low near the $1185 level, crude oil being stuck near $65 per barrel regarding the WTI contract, while copper trying to hold its ground after the recent key breakdown.

Dr. Copper is still signaling troubles ahead for China and the global economy, as although the commodity outperformed today, it’s clearly below the break-down level near $2.7, and the downtrend will likely continue in the coming weeks.

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.
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...

4.6 stars on average, based on 321 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

Market Overview

Say No to Currency Contagion

Published

on

Hi Everyone,

Once again the deteriorating relationship between the United States and Turkey is leading the news. The Lira is sliding again and it does seem to be bringing some of the other emerging market currencies with it.

As we’ve been saying throughout the week, it’s very possible that the declines in the crypto market earlier this week are due to a stronger US Dollar more than anything else.

As I’ve said before, in order to understand what’s happening in crypto, we must look at what’s happening in the rest of the economy as well. In this case, the US Dollar strength isn’t coming from Turkey, that’s just the catalyst.

The Greenback has been gaining ground since early April on the promise of higher interest rates in a strong economy. So far today, it doesn’t seem that the Lira’s slide is affecting the other major currencies though, nor has it touched crypto for the time being.

@MatiGreenspan
eToro, Senior Market Analyst

Today’s Highlights

  • Currency Contagion
  • Looking at Metals
  • ETC Backwards

Please note: All data, figures & graphs are valid as of August 17th. All trading carries risk. Only risk capital you can afford to lose.

Traditional Markets

Now that we’ve established the underlying theme and why the Dollar’s been surging, it seems that the situation has largely been contained. At the beginning of the week, the strong Dollar was taking out everything in its path. Today, the declines seem to be limited to the emerging markets.

In fact, of the major currencies, the USD is the worst performer today.

So even though the Dollar is rising against the Lira, Peso, and Rand…

… it doesn’t seem to be spilling over into other markets today.

Looking at Metals

Now that we’ve seen one of the biggest declines in the metals markets in recent history, it’s time to examine the long-term charts again.

Frankly, the weakness in metals still doesn’t make much sense to me. As we saw the Dollar strength earlier in the week, it did decline further but the declines seem disproportionate to the gains of the Buck.

Actually, what we’re seeing since 2011 is a precious metals market that’s been trending down.

The question is, has that dynamic come to a head?

The fun thing about the way down is that eventually, you run into a lower barrier at the production cost. Meaning, if the price to mine a metal is higher than the price to sell it, miners will stop mining, which generally tends to drive up the price.

A quick look at the mining costs of all three of the above does seem to indicate that those prices are quite close or even already passed.

A Crypto of its own

It’s good to see the rebound taking hold in the crypto markets despite the emerging currencies continuing to sell-off today. This is a positive indication that crypto is less sensitive to the moves of the Dollar but under extreme circumstances still is susceptible.

One thing that seems to be sticking out like a sore thumb is Ethereum Classic. In this graph, we can see that ETC (white line) has been acting out since mid-June and simply hasn’t been following the rest of the market.

This type of go-it-alone price action is typical when prices are moving up, but we almost never see it when prices are declining.

One of the reasons might be due to the listing of ETC on Coinbase. A new door to this crypto could mean new money flowing in. This could be worth keeping an eye on in the next few days. I’m eager to see how long it will take to fall back in line with the other cryptos or if it increases in market share following the listing.

Wishing you a fantastic weekend!

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

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