Connect with us

Market Overview

Asian Market Update – Wednesday: Bitcoin blasts through record $10k, still aiming higher; Asian stocks mixed on North Korea

Published

on

Bitcoin record

The sky appears to be the limit for bitcoin.

The biggest news in the cryptocurrencies world or the global financial markets today is bitcoin, the new gold, the biggest bubble or whatever you want to call it. On Coinbase, bitcoin reached the milestone $10,000 after an impressive rally in recent days at 9 AM Hong Kong time Wednesday.

Still, the coin is far away from slowing down, it is still powering ahead with a solid momentum, up 4.13 percent to $10,359.

Positive outlook still persists, at least to some, as the virtual currency is expected to be traded as a futures contract on the Chicago Mercantile Exchange – a significant step that gives the coin more legitimacy and mainstream appeal.

However, skepticism also grows as bitcoin reaches historic highs. Many, including prominent figures like the now infamous bitcoin-basher Jamie Dimon, have long been calling bitcoin trading highly speculative and headed for a crash.

Also important to note are the gains made by ethereum and litecoin on Wednesday and in the past few days.

Etherum gained about $10 in a strong upswing earlier in the morning, bringing the price to $479, though that’s still well below the earlier record high of $493. Ethereum fell back a bit later in the morning but was still up 1.28 percent to $474 as of midday in Asia.

Litecoin price also hit a new all-time-high of $100.99 before falling back to $98 at midday, still keeping a gain of nearly 4 percent for the day.

Main Market Movers – Mid-day Asian Trading Session

Indexes Value at Midday Daily Change
Japan- Nikkei 225 22,576 0.40%
China-Shanghai Composite Index 3,312 -0.63%
Hong Kong –Hang Seng 29,592 -0.30%
South Korea-KOSPI 2,512 -0.07%
Australia-ASX 200 6,020 0.61%
S&P 500 E-Mini Futures 2,623 -0.09%

Most major Asian equities markets were mixed during early trading on Wednesday, with gains in Tokyo and Sydney, but losses in China and South Korea, as investors weigh on tensions on the Korean Peninsula after the latest intercontinental ballistic missile launch from North Korea this morning.

The new ICBM, landing near Japan, showed that Kim Jung Un, who has exchanged tough words with US president Donald Trump, could reach as far as Washington DC with his weapons, per a Reuters report. Until now, North Korea has not conducted any missile tests since September.

Down under, the ASX 200 picked up 0.61 percent to 6,020 – the largest percentage gain among major Asian indexes.

In Tokyo, the Nikkei 225 Index edged up 0.40 percent to 22,576 before midday.

On the Chinese mainland, the Shanghai Composite Index continued on a downtrend that started late last week. Before midday Wednesday, the benchmark lost 0.63 percent to 3,312. Tightening regulations for the financial markets still weigh on investors’ confidence in mainland stocks.

In Hong Kong, the Hang Seng Index lost 0.3 percent to around 29,592 on Wednesday, tracking losses on the mainland.

In South Korea, the Kospi was off a slight 0.07 percent to around 2,512 shortly after midday.

The S&P 500 E-Mini Futures was down 0.1 percent to 2,599 at midday.

Currencies

The Japanese yen gained 0.05 percent the US dollar at midday Wednesday to 111.41 per dollar.

The Chinese yuan firmed 0.07 percent against the US dollar at 6.6000 per dollar.

The Australian dollar lost 0.02 percent on the dollar, changing hands at 1.3167 per dollar at midday.

Commodities

WTI Oil was down 0.1 percent to $57.67 per barrel.

Brent Crude lost 0.71 percent to $63.22 per barrel.

Gold was up 0.17 percent to $1,295.54 an ounce.

News across Asia

In Japan, the conglomerate SoftBank Group Corp announced on Tuesday a tender offer to buy shares of embattled Uber Technologies, along with Sequoia Capital and China’s Tencent. The group is looking to buy about $8 billion dollar worth of shares.

Take away: It might be good news for Uber, which is facing a lot of trouble in the US as well as in international markets. However, the offered price is just $32.96 per share, significantly lower than the $48.77 per share Uber was offered in its latest series G round of funding.

In China, a top official on the board of the China Banking Regulatory Commission said Wednesday that the Chinese economy still faces huge downward risks that could weigh on the growth pace in 2018.

Take away: Latest data suggest that the world’s second-largest economy has sustained solid growth this year, but with mounting debts and other risks, the outlook appears to be less optimistic.

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

HODL – No Diggity

Published

on

Hi Everyone,

The more I watch this the funnier it gets. Really glad to see it exploding on social media today.

Video: https://youtu.be/Ihd0moB0ehM

Hats off to our amazing marketing and PR teams for continuing to hasten crypto awareness in a fun and friendly way.

@MatiGreenspan
eToro, Senior Market Analyst

Today’s Highlights

  • Lay Down The FOMC
  • May in Brussels
  • Crypto Stability

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

Traditional Markets

The US session entered euphoria yesterday as American investors seemed to forget all the friction around the world and buy up stocks like they were going out of style.

However, the rampant enthusiasm has not been shared by Asian or European investors this morning. The rally has now been called into question.

Traders will be looking towards the Fed for guidance today as they release the minutes from their last meeting at 14:00 New York time.

More Brexit

While we await an update from Brussels regarding the Italian budget proposal, on the agenda for today will be Prime Minister Theresa May, who comes to express her proposals for a new exit deal

This evening’s dinner will be attended by Emmanuel Macron, Angela Merkel, and Donald Tusk, among others. However, although her speech is the highlight of the evening, apparently May will not be staying for dinner.

We should watch for updates starting from 19:00 Brussels. What people really want to see is some sort of new solution for the Irish border. This does seem to be the only sticking point left but like a Chinese finger trap, the harder politicians pull the further we get from a solution.

Tracking the strength of the Pound Sterling against the US Dollar has been pretty pointless. Due to the global nature of the Buck, the GBPUSD pair usually reflects Dollar strength more than anything. We can however, get a good picture of the Pound by watching the EURGBP.

As we can see the pair has been in a pretty solid range over the last year and is now near the lows.

Crypto Stability

Fortunately, Tether has come a long way towards recovering its one-to-one status with the USD and is now trading on major exchanges at a small discount of about 4 or 5 cents on the Dollar.

Despite the whipsawing that we’re seeing in virtually all the traditional markets, even including Monday’s Tether wobbles, the crypto market has been extremely stable over the last few weeks.

As we’ve stated before, one of the great attractions of the crypto asset class is that historically it bears little correlation with other markets (this week’s movements being a notable exception), making it a good hedging tool.

Please let me know if you have any questions, comments, or feedback. Let’s have an amazing 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...

4.6 stars on average, based on 133 rated postsSenior Market Analyst at Etoro.com.




Feedback or Requests?

Continue Reading

Analysis

Stocks Surge on Earnings as Saudi Tensions Ease

Published

on

US stocks started the session in positive territory following the positive earnings surprises by Goldman Sachs (GS) and Morgan Stanley (MS), and from then on, the floodgates opened and we saw the strongest rally on Wall Street since March. President Trump’s more diplomatic stance towards Saudi Arabia helped the bounce in stocks, together with the stability in Treasury yields, but the most important driver was the huge bearish move of last week in stocks.

The major indices all gained more than 2% amid the furious oversold bounce, with, unsurprisingly, the Nasdaq gaining the most on the day, but last week’s deep correction is still far from being erased, and given the negative market internals, we remain defensive towards equities, even regarding the short-term time-frame.

S&P 500 Index Futures, 4-Hour Chart Analysis

We were expecting a similar move since Thursday when stocks reached deeply oversold short-term momentum readings, and as we noted then, these rallies should be treated as selling opportunities, due to the broad technical weakness in emerging markets, Europe, and now on Wall Street as well.

The S&P 500 all but cleared the oversold short-term readings thanks to today’s surge and the preceding choppy consolidation phase, and now the index is near the levels where we would look for a swing high in the coming week. The Volatility Index (VIX) plunged back below, and its behavior in the coming days will be key in judging the real strength behind today’s move.

Russell 2000, 4-Hour Chart Analysis

In spite of the strong move in small-caps as well, the Russell 2000 continues to look wounded from a technical perspective, and the index is facing very strong resistance levels. According to almost all breadth measures, under-the-hood, things are also ugly, and even if the US bull market has legs, this correction is very unlikely to end with a V-shaped bottom, as a lot of healing would be needed to maintain a sustained rally.

Calm US Session in Currencies Amid Stock Surge

USD/JPY, 4-Hour Chart Analysis

Forex markets also saw corrective price action, although the main safe-haven assets, the Japanese Yen and gold gave back only a small portion of their recent gains. The Dollar finished little changed before tomorrow’s key FOMC meeting minutes, while the Pound pulled back after a positive European session.

We expect a larger move in the Greenback in the coming days, and the consolidation in Treasuries could also come to an end, and another leg higher in Yields could be the trigger that ends the oversold bounce in stocks.

Copper Futures, 4-Hour Chart Analysis

Commodities had a quiet and choppy session, except the still active gold, and although crude oil managed to bounce amid the risk-on shift, copper failed to build on its recent resilience. the industrial metal is still stuck in a bearish consolidation pattern, with all eyes on the $2.75 support and the $2.87 resistance.

The way Chinese assets will react to today’s rally will be crucial for the commodity, as a meaningful bounce could help copper to a new swing high, despite the bearish long-term pressures.

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 377 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

Market Update: U.S. Stocks Rebound Sharply as Earnings Season Underway; Cryptos Stabilize After Wild Monday

Published

on

U.S. stocks rebounded sharply on Tuesday, with the Dow adding more than 500 points as traders set their sights on corporate earnings. Meanwhile, cryptocurrecy prices hovered in a narrow range as trade volumes returned to normal.

Stocks in Recovery Mode

All of Wall Street’s major bourses posted large gains on Tuesday, with the large-cap S&P 500 Index advancing 2.2% to 2,810.05. All 11 primary sectors contributed to the gains, with shares of information technology and the closely related communication services companies leading the rally.

A strong performance in technology sent the Nasdaq Composite Index surging. The tech-laden average jumped 2.9% to close at 7,645.49.

Meanwhile, the Dow Jones Industrial Average rose 547.87 points, or 2.2%, to 25,798.87.

The CBOE Volatility Index, commonly known as the VIX, plunged 17.3% to 17.62 on a scale of 1-100 where 20 normally represents the long-term average. The so-called fear gauge spiked to six-month highs last week during the height of the stock-market selloff.

Corporate Earnings in the Spotlight

Wall Street is gearing up for another high-flying earnings season, with analysts at FactSet forecasting one of the best quarters since 2011. A trio of bank earnings last Friday kicked off the earnings quarter, with Citigroup Inc. (CI), Wells Fargo & Co (WFC) and JPMorgan Chase & Co (JPM) all reporting sound numbers.

Shares of Goldman Sachs Group Inc. (GS) rose sharply on Tuesday after the Wall Street mega bank reported better than expected per-share earnings. Morgan Stanley (MS) saw its share price rally after posting a 20% jump in profits on the quarter as revenues also increased. UnitedHealth Group Inc. (UNH), a Dow blue-chip, also posted firm gains after reporting top- and bottom-line results that were higher than expected.

Johnson & Johnson (JNJ), another Dow company, also reported better than expected earnings and revenue for the most recent quarter.

Cryptos Hold Steady

Bitcoin and the wider cryptocurrency market traded within a narrow range on Tuesday, as turnover fell more than 40% from the previous day’s high. In the process, Tether’s USDT stablecoin rose modestly after losing its one-for-one peg with the U.S. dollar.

Since peaking above $221 billion at the start of the week, the cryptocurrency market capitalization has stabilized around the $210-$212 billion range. Bitcoin, the largest crypto by market cap, traded steady at $6,575. The bitcoin price continues to trade at a significant premium on Bitfinex and other digital currency exchanges that facilitate trading of USDT.

As Hacked reported earlier, Tether took $300 million worth of USDT tokens out of circulation last week. One of the transactions, worth $100 million, was carried out on Oct. 9 with the remainder being moved five days later.

USDT plunged by as much as 6% on Monday, which triggered a sharp rise in the value of bitcoin and commensurate gains in the broader market.

The combined value of all cryptocurrencies currently hovers just above $211 billion, according to CoinMarketCap. Daily trade volumes amounted to roughly $12.2 billion.

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.
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 647 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

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