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Asian Market Update – Wednesday: Asian shares trading higher as Communist Party Congress convenes in China

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Communist Party members

The Big Question: How will markets react to news out of the congress?

Major Asian equity markets were trading higher during Wednesday morning’s trading session, as markets in China and across the Asia Pacific watched the once-in-five-years meeting of the Communist Party of China in Beijing.

Wednesday morning, President Xi Jinping is delivering a hours-long speech, which can be compared to the US President’s State of the Union speech to Congress, addressing issues ranging from social and economic to military, and so on.

In China, the Shanghai Composite Index was up 0.27 percent to about 3,381 before midday on Wednesday. The CSI 300 Index, which tracks the 300 largest companies listed in Shanghai and Shenzhen, was up 0.48 percent to 3,931 before midday.

In Hong Kong, the Hang Seng Index edged up 0.01 percent to around 28,700 before midday.

In Japan, the Nikkei 225 was up 0.09 percent to around 21,354. The Nikkei remained in an uptrend on Wednesday, following recent record highs.

In South Korea, the Kospi was down a slight 0.15 percent to around 2,480 shortly before midday. Korean Peninsula tensions are rising again after a North Korean ambassador to the UN warned that a nuclear war “could break out any moment.”

Down Under, the ASX 200 also added 0.08 percent to around 5,894.

The economic data front remain relatively quite on Wednesday, with the biggest market driver today likely to be the Communist Party Congress in China.

President Xi, in his speech, repeated largely familiar themes in terms of economic policy, which included calls for continued implementation of opening and reforms of the Chinese economy.

Main Market Movers – Mid-day Asian Trading Session

Indexes Value at Midday Daily Change
Japan- Nikkei 225 21,354 0.09%
China-Shanghai Composite Index 3,381 0.27%
China-CSI 300 3,931 0.48%
South Korea-KOSPI 2,480 -0.15%
Hong Kong –Hang Seng 28,700 0.01%
Australia-ASX 200 5,894 0.08%

Cryptocurrencies

Prices of cryptocurrencies pointed lower overnight during the Asian trading session on Wednesday.

As of midday in Asia, bitcoin was down 1.67 percent to $5,503, that’s about $60 lower than the same time on Tuesday. However, the overall pattern is still showing a healthy consolidation in bitcoin above the support level at $5,500.

Ethereum lost 2.74 percent to about $307 before midday. Ethereum is now near the $300 level after recent surges to as high as $340.

Litecoin was down 3.28 percent to about $57 at midday. Litecoin has now dropped below $60 after several days above that level.

Currencies

The Japanese yen lost 0.07 percent the US dollar at midday Thursday to 112.25 per dollar.

The Chinese yuan gained 0.2 percent against the US dollar, trading at 6.609 per dollar.

The Australian dollar gained 0.03 percent on the dollar, changing hands at 1.2742 per dollar at midday.

Commodities

WTI Oil was flat for the day, trading at $51.90 per barrel.

Brent Crude gained a slight 0.28 percent to $58.21 per barrel.

Gold was up 0.11 percent to $1,286 an ounce.

Business News across Asia

In China, of course, the focus of not only Chinese state media but foreign media outlets is on the speech by President Xi Jinping. As mentioned above, the speech covers a wide range of topics. But if you only take one thing out of it, here it is:

Take away: President Xi reaffirmed earlier calls for opening and reform plans, trying to reassure foreign companies about market conditions and access. Though that’s just talk now, but a talk like that in a such a big meeting, carries a lot of weight.

Featured image from Wikimedia Commons.

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 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.




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Market Update: U.S. Stocks Drift Lower Ahead of Fed; Bakkt Offers Up Physical Bitcoin Futures

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U.S. stocks drifted mostly lower on Tuesday, as traders reduced their exposure to riskier assets ahead of the Federal Reserve’s upcoming policy decision on Wednesday. Crypto markets were down across the board despite getting some positive news from a keenly awaited blockchain startup.

Stocks Mostly Lower

The S&P 500 Index declined 0.1% at 2,915.57, with seven of 11 primary sectors finishing lower. Losses were largely concentrated in utilities and consumer staples. After a strong open, Dow industrials reversed course to finish down 69.71 points, or 0.3%, at 26,492.34.

The technology-heavy Nasdaq Composite Index bucked the downtrend, climbing 0.2% to 8,007.47.

Monetary policy is back in focus on Wednesday as the Federal Reserve concludes its two-day meeting in Washington. Fed officials widely expected to raise interest rates for the third time this year. The policy statement, which will be released at 2:00 p.m. ET, will be accompanied by a quarterly summary of economic projections covering GDP, unemployment and inflation.

Altcoins, Tokens Plunge

The cryptocurrency market lost more than $10 billion in combined value on Tuesday, though losses were largely concentrated in altcoins and tokens. Ethereum, XRP, EOS and XLM – ranked nos. 2, 3, 5 and 6 by market cap, respectively – each fell by at least 10%.

Capital outflows from bitcoin left the digital currency with a loss of 3.9%. BTC was last valued at $6,381 on total trade volumes of $4.5 billion.

After a promising week, cryptocurrencies entered a brief period of consolidation before resuming their slide on Monday. Combined market values are down $24 billion from Friday’s high. While the pullback wasn’t unexpected, given XRP’s massive rally last week, the extent of the selloff offers further evidence of a prolonged bear market that is disproportionately impacting altcoins and tokens.

ICE’s Bakkt Announces Physical Bitcoin Futures

Although bearish forces still control crypto prices, market fundamentals continue to paint a brighter future for digital assets. Case in point: Bakkt, the new cryptocurrency startup created by Intercontinental Exchange (ICE), is set to unveil the first physically delivered bitcoin futures contracts. The announcement, which was confirmed on Tuesday by ICE, will offer new pathways for institutional investors and retail traders to access cryptocurrency.

“Our first contracts will be physically delivered Bitcoin futures contracts versus fiat currencies, including USD, GBP and EUR,” Bakkt tweeted on Tuesday. “For example, buying one USD/BTC futures contract will result in daily delivery of one Bitcoin into the customer’s account.”

ICE’s new crypto platform is set to launch in November. In addition to securitizing crypto assets, Bakkt has partnered with some of America’s biggest companies to bring bitcoin payments to consumers.

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 614 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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Market Overview

Relatively Vigorous

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Hi Everyone,

Social media is abuzz with the news that Instagram’s founders are leaving the company and handing the keys over to Mark Zuckerberg.

When they initially sold Instagram to Facebook for $1 billion in 2012, Mike Krieger and Kevin Systrom were kept in post, to manage the creative development of the rapidly growing platform.

However, after many clashes with their parent company and its founder over politics and product features, it seems the two are ready to move on to their next adventure.

Several $FB holders that I’ve spoken with recently have shrugged off the recent trend of users migrating away from Facebook by stating that the social network giant has managed to buy out most of the competition.

After the co-founder of WhatsApp famously urged his followers to delete facebook in April, the bigger question now becomes, will Zuckerberg manage to retain the attention of the public while those responsible for building up these platforms are working against him.

Facebook’s stock has had a rather turbulent year so far. It will be interesting to see how the shares open up today.

@MatiGreenspan
eToro, Senior Market Analyst

Today’s Highlights

  • Knife to Throat Negotiations
  • Don’t Rush Central Bankers
  • Backtracking Crypto Slander

Please note: All data, figures & graphs are valid as of September 25th. All trading carries risk. Only risk capital you can afford to lose.

Traditional Markets

Stocks in Asia are down sharply today, as authorities are using vivid imagery as a negotiating tool with the United States.

It’s clear that China is willing to talk and the latest rhetoric seems to be more about respect than leverage. A gentle reminder that it’s difficult to negotiate when you’re backed into a corner.

The China50 index has now revealed a new trading range (solid yellow lines) between 10,750 and 12,000 points. Both of these levels have proven to be critical junctures (dotted yellow lines) over the last two years.

In Japan, on the other hand, stocks are flying as the central bank has offered even more support to the market.

Central Bank Yapping

The Bank of Japan has been among the most aggressive institutions when it comes to monetary policy and quantitative easing. A speech this morning from BoJ governor Kuroda confirms that this attitude isn’t about to change…

This means that, despite printing trillions of Yen and owning more than 75% of Japan’s ETFs, the Bank hasn’t quite accomplished its goals yet.

In a surprise turn of events, Governor Kuroda did acknowledge that there may be side effects to this aggressive policy. Yet, he insists that the bank is ready to ease further if needed.

Over in Europe, Mario Draghi from the European Central Bank is making waves of his own, saying that there has been a “relatively vigorous pick-up in inflation.”

Personally, I’m wondering how to interpret this statement. What does “relatively vigorous” mean, anyway?

Nonetheless, any sort of pick-up in inflation, no matter what adjectives we use to describe it, could move the ECB’s timetable forward. We’re seeing a relatively vigorous pick-up in the Euro, which is now testing $1.18.

Tomorrow, we’ll get a critical interest rate decision from the US Federal Reserve, with the odds in favour of a 0.25% hike. More on that in tomorrow’s update. Trading stands a good chance of being muted going into the announcement.

Crypto Backtracking

As crypto prices seem to be walking back their gains from last week, another financial institution seems to be backtracking on their crypto policy.

The Bank of International Settlements has put out a new study, which reveals that news events regarding crypto regulations do in fact have a fair impact on market prices.

As indicated above, their report includes the following statement…

This represents a complete turnaround in the BIS’s sentiment towards cryptocurrencies and comes in stark contrast to a statement made in February by BIS General Manager…

So not only have they flipped their opinion of whether or not it should be traded, they’re now giving advice to cryptotraders on how to trade. Hooray!!

Have a wonderful day ahead!

Wishing you an amazing weekend 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.

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4.7 stars on average, based on 129 rated postsSenior Market Analyst at Etoro.com.




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Market Overview

Market Update: U.S. Stocks Rattled by Trade War; Cryptocurrencies Pull Back from Multi-Week High

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U.S. stocks declined sharply on Monday, with the Dow and S&P 500 pulling back from record highs on news that China and the United States had cancelled upcoming trade talks. Meanwhile, cryptocurrencies slipped from recent highs on profit-taking.

Stocks Fall

All of Wall Street’s major indexes posted declines on Monday. The S&P 500 Index slipped 0.4% to 2,919.37, with seven of 11 primary sectors finishing in negative territory. Consumer staples were the biggest decliners percentage-wise; industrials and materials also finished firmly lower.

Shares of energy companies bucked the downtrend, rising more than 1% on average, as international crude prices hit four-year highs.

The much narrower Dow Jones Industrial Average declined 181.32 points, or 0.7%, to 26,562.18. The technology-focused Nasdaq Composite Index reversed losses in afternoon trading, rising 0.1% to 7,993.25.

The CBOE VIX, also known as the fear index, rose 5.2% to 12.29. VIX typically rises when stocks fall and vice versa. Levels below 20 generally point to complacent market conditions.

U.S.-China Trade Talks Cancelled

Equity markets were under pressure as new tariffs on U.S. and Chinese goods came into effect. Both countries have also cancelled upcoming trade talks after the Trump administration announced a 10% levy on $200 billion in Chinese goods. In response, Beijing slapped import duties on 5,000 U.S. products and rescinded its proposal to send a trade delegation to China.

The new round of tariffs on Chinese goods came into effect on Monday. The current rate of 10% is set to rise to 25% by year-end if China doesn’t comply with Washington’s demands.

The Trump administration is doubling down on its threats because China cannot match the U.S. dollar for dollar in a trade war. Beijing’s massive surplus with the U.S. gives Washington more leverage in negotiating the new terms of trade.

Cryptocurrencies Stabilize After Sharp Correction

The cryptocurrency market was valued at roughly $220 billion Monday afternoon, well off its most recent high of $230 billion. The sharp pullback affected all major coins, though altcoins were disproportionately impacted.

XRP and XLM, the market’s top performers last week, were each down double digits through the early morning session. By the afternoon, XRP had pared its losses to 7.5% and was trading at $0.524. Meanwhile, Stellar’s XLM was worth $0.264, having declined 5.7% over 24 hours.

Bitcoin stemmed its intraday loss to less than 1% as markets continued to stabilize. The leading digital currency is currently trading around $6,643 for a 52% share of the overall market.

As Hacked reported earlier, a pullback in the market was expected following the rapid gains in altcoins and tokens over the past five days. Although the gains were largely predicated on positive fundamental news, the bulls have yet to make a convincing break higher. This means the status quo of lower for longer is still very much in effect.

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 614 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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