Connect with us

Market Overview

Asian Market Update – Wednesday: Coins fall back after strong rally; Asian stocks mixed ahead of Fed decision

Published

on

Falling

Litecoin surged 60 percent on Coinbase, but other exchanges are lagging behind

The main cryptocurrencies took a hard hit on Wednesday morning in Asia, after strong gains the day before.

On Coinbase, bitcoin fell 4.79 percent to $16,880 at midday in Asia. The virtual currency had a nice run on Tuesday before erasing nearly all gains for the day on Wednesday morning.

Though investors are optimistic that bitcoin could hit the $20,000 mark any time soon ahead of more futures markets being launched next week, some government officials in South Korea and Australian appear to be very skeptic about the rise of bitcoin.

In Australia, the head of the country’s central bank, Philip Lowe, said that bitcoin rise is a “speculative mania” and that it was more of a payment method for the black or illegal economy. In South Korea, the government said in a statement on Wednesday that it will consider taxing capital gains from cryptocurrency trades, though this is something many other countries are already practicing.

Ethereum fell sharply on Wednesday morning, after a solid upswing on Tuesday. At midday in Hong Kong on Wednesday, the cryptocurrency was down 5 percent to $646. On Tuesday, ethereum posted a gain of more than 32 percent to hit a record high of $686.

Litecoin also lost about 6 percent to $325 on Coinbase Wednesday morning. Litecoin made headlines across the crypto world of on Tuesday after an extreme surge on Coinbase of over 60 percent in a single day.

There are now significant price differences between Coinbase and other exchanges on the LTC/USD pair. While litecoin has been gaining across the board, no other exchanges have come close to the prices seen on Coinbase over the past few days.

Main Market Movers – Mid-day Asian Trading Session

Indexes Value at Midday Daily Change
Japan- Nikkei 225 22,697 -0.73%
China-Shanghai Composite Index 3,276 -0.12%
Hong Kong –Hang Seng 28,884 0.31%
South Korea-KOSPI 2,478 0.71%
Australia-ASX 200 6,008 -0.08%
S&P 500 E-Mini Futures 2,661 -0.27%

Major Asian equities were in mixed mode on Wednesday morning, as investors were waiting for an interest rate decision from the US Fed later in the day.

Overall, markets were down in Japan, the Chinese mainland and Australia, while indexes were pointing slightly higher in Hong Kong and South Korea.

the S&P 500 E-Mini Futures was off 0.27 percent at 2,661 at midday on Wednesday.

In Hong Kong, the Hang Seng Index edged up 0.31 percent to 28,884 at midday.

In South Korea, the Kospi was 0.71 percent higher to 2,478 at midday. Positive news regarding North Korea came out of Washington on Wednesday, when US Secretary of State Rex Tillerson indicated that the US is ready to talk with North Korea.

In Japan, the Nikkei 225 Index lost 0.73 percent to 22,697 at midday.  A debate on the BOJ’s monetary policy next year is ongoing, but the latest news reports suggest the central bank is likely to keep rates low.

On the Chinese mainland, the Shanghai Composite Index was off 0.12 percent to 3,276.

Down under, the ASX 200 was down 0.08 percent to 6,008 at midday.

The US Fed is scheduled to conclude its two-day policy meeting on Wednesday, and markets are cautiously waiting for any clues of the Fed’s decision on interest rate hikes. If the Fed indicates a more hawkish tone, it would likely put pressure on emerging markets equities and currencies.

Currencies

The Japanese yen firmed 0.26 percent against the US dollar at midday Wednesday, changing hands at 113.26 per dollar.

The Chinese yuan gained 0.04 percent against the US dollar at 6.6183 per dollar.

The Australian dollar firmed 0.29 percent on the dollar, changing hands at 1.3195 per dollar at midday.

Commodities

WTI Oil was up 0.14 percent to $57.51 per barrel.

Brent Crude edged up 0.16 percent to $63.92 per barrel.

Gold was down 0.01 percent to $1,244 an ounce.

News across Asia

In China, Google Inc. announced in Beijing on Wednesday that it would open an artificial intelligence (AI) research center in China, which it said would be the first of its kind in Asia.

Take away: With laser-like focus from the Chinese government on AI, Google is trying to tap into China and get ahead in what could be a game-changing technology that has a wide range of applications.

In Japan, Reuters reported on Wednesday that the Bank of Japan is set to keep an assumed interest rate at a record low of 1.1 percent. The central bank has been keeping its rates low and in turn borrowing costs low, albeit missed inflation targets and signs that the economy is improving.

Take away: There are different voices within the BOJ, where some are pushing for an end to ultra-easy monetary policies, while others are advocating for a continuation of those polices.

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

Capitulation

Published

on

Hi Everyone,

Those of you who’ve been reading these market updates, as well as our crypto research papers, know that one of my favorite subjects is the evaluation of cryptoassets.

Last week, we released a video that introduces some of the concepts for assigning value to different projects. Last night, the popular crypto website CoinDesk has released a tool that takes this to an entirely new level.

Make no mistake, this visualization tool is nothing less than groundbreaking. It allows alternative investors to easily compare the various cryptoassets using five key parameters: Price, Network, Exchange, Social, and Development.

Here’s a screenshot comparing Ethereum to XRP….

Another interesting thing you can see in these visualizations was the effect of the recent stress tests on the Dash blockchain that happened on November 12th and 13th.

CoinDesk has also been very transparent about their methodology and how they arrive at the figures so we can be sure that we’re looking at actual data and not any personal biases by the tool makers.

You can read more and watch their intro video here and of course play around with the tool at: coindesk.com/data

We still have a long way to go to develop these concepts but this is one massive step forward. Well done!

@MatiGreenspan
eToro, Senior Market Analyst

Today’s Highlights

  • More Tech Stock Trouble
  • Brexit Capitulation
  • Crypto Selloff

Please note: All data, figures & graphs are valid as of November 15th. All trading carries risk. Only risk capital you can afford to lose.

Traditional Markets

Stocks fell yesterday, again led by Apple, the tech sector and manifesting in the Nasdaq. Today things seem to be bouncing upwards despite uncertainty in the press about the Brexit negotiations.

Conferring with my clients and colleagues in London lately it seems that just about everyone is struggling to keep up with exactly what is going on. So here’s a helpful flowchart that displays just how simple this is.

The complexity of course is showing up directly in the price of the Pound Sterling. This whipsaw action on the GBPUSD seems to be intensifying lately and the above news this morning is seeing the Pound capitulate.

Crypto Capitulation

As you may have noticed, the crypto markets took a sizable hit yesterday following the sell-off in the tech sector. Though we’ve seen that Bitcoin is usually fairly disconnected from the stock markets, there have been distinct moments lately where they have moved in tandem, which leads me to believe that there can be some level of spillover.

A wide variety of factors may have contributed to the fall yesterday. I even saw one analyst trying to peg this on Brexit, which somehow just doesn’t seem very likely.

Most of the news in the crypto sector over the last few days has been about the Bitcoin Cash hard fork happening today. The fear is that the hash wars in BCH could end up affecting BTC. To be clear, any miner that switches their BTC hash over to BCH will be paying a very heavy price.

Even in the unlikely event that we see a sizable reduction in Bitcoin’s hashrate, it might temporarily affect transaction costs on Bitcoin but it will probably not have any lasting effect on bitcoin’s price and certainly not its stability.

From everything I’m seeing, the move last night was more technical in nature. The break below $6,000 was quite significant and there has no doubt been a slew of stop losses that have been built up over the last few weeks.

Several analysts have been talking about the capitulation phase that often marks the end of a bear market. This poll from NewsBTC could also be an indication that we’ve now seen some of the last weak hands shaken off their position and that those who remain are likely not to be scared off by further downward pressure.

Whatever the cause of this move and even though the price action is down, in some way, it’s good to see volatility returning to this market.

Let’s have an awesome day ahead!

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

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

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

eToro is a multi-asset platform which offers both investing in stocks and cryptocurrencies, as well as trading CFD assets.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

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 134 rated postsSenior Market Analyst at Etoro.com.




Feedback or Requests?

Continue Reading

Market Overview

Market Update: U.S. Stocks Plunge; Carnage in Crypto Land

Published

on

U.S. stocks declined sharply on Wednesday, as global growth concerns and a rollover in technology shares triggered a fresh selloff on Wall Street. Meanwhile, cryptoassets lost their yearly price floor as bitcoin and the major altcoins plunged double digits on the eve of the BCH hard fork.

Stock Selloff Resumes, Then pauses

All three major U.S. indexes booked heavy losses midweek. The large-cap S&P 500 Index declined 0.8% to 2,701.61. Losses spread across nine of 11 primary sectors, with financials and information technology leading the downtrend.

Slumping tech shares undercut the Nasdaq Composite Index, which fell 0.9% to close at 7,136.40.

The Dow Jones Industrial Average lost 205.45 points, or 0.8%, to end the day at 25,081.04. Tech bellwether and Dow blue-chip Apple Inc. (AAPL) flirted with bear-market territory as concerns over iPhone shipments continued to weigh. Since peaking above the trillion-dollar mark, Apple’s market capitalization has fallen by over $200 billion.

Concerns about peak revenue and disappointing sales targets have contributed to a mass exodus out of technology shares in recent months. The S&P 500’s information technology index has pared its year-to-date return to less than 7% amid the latest drop. The index was up more than 20% for the year through Oct. 2.

Global Growth Woes in Focus

Signs of a slowing global economy have lowered risk appetite across major asset classes, with recent data showing downturns in both emerging and industrialized markets. On Wednesday, the German government said its economy shrank in the third quarter for the first time in over three years.

German gross domestic product (GDP) contracted 0.8% annually in Q3, casting a large shadow over the Eurozone economy. Germany accounts for roughly one-fifth of euro area output and is the backbone of its manufacturing sector.

Separately, Japan reported that its economic output declined 1.2% annually during the same period, as global trade tensions undermined business confidence.

The latest data show a dramatic divergence in economic fortunes between the United States and its global allies. Under President Trump, the U.S. economy expanded 3.5% annually in the third quarter. In Q2, GDP growth reached multi-year highs at 4.2%.

Cryptocurrency Market Notches New Yearly Low

The crypto market took a decisive shift lower on Wednesday, as coin values lost a combined $30 billion in value in just over 24 hours. Among the top 20 coins, losses ranged between 9% and 17%, with bitcoin, Ethereum and the leading tokens losing billions in market cap.

Bitcoin’s selloff touched 13-month lows, with prices briefly falling below $5,400. Despite the loss, bitcoin’s share of the overall market cap increased.

While there was no single catalyst for the selloff, anxiety over bitcoin cash and its pending hard fork seems to have influenced investor sentiment. At the time of writing, BTC was down 17%, having completely erased the 50+% gains it registered in the weeks leading up to the Nov. 15 hard fork.

The combined crypto market cap reached a new yearly low of $182 billion on Wednesday. Trade volumes spiked nearly 40% to $19.7 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 664 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




Feedback or Requests?

Continue Reading

Analysis

Pre-Market Analysis And Chartbook: Markets Flat Ahead of Key Economic Data

Published

on

Wednesday Market Snapshot

Asset Current Value Daily Change
S&P 500 2,729 0.02%
DAX 30 11,467 -0.05%
WTI Crude Oil 56.16 1.59%
GOLD 1,202 -0.03%
Bitcoin 6,211 -0.80%
EUR/USD 1.1287 -0.01%

As traders awaited the key US economic releases of the week, the Consumer Price Index (CPI) and the Retail Sales report, financial markets were relatively quiet and flat before the Wall Street open, but things got volatile since then, despite the muted CPI reading. The progress in the Brexit negotiations and the liquidation event in crude oil were making headlines today, although the advance in the Pound stalled, as equity markets and in general risk assets are still under clear selling pressure following the turmoil in October. The second half of the week will likely see strong moves across asset classes, and given the negative technicals, odds favor a risk-off shift globally.

EUR/USD, 4-Hour Chart Analysis

The Dollar is consolidation after its move to new 16-months highs on Monday, and for now, the currency failed to confirm the break-out, at least as measured by the Dollar index. The EUR/USD is showing a slightly different picture compared to the broader measure, and the common currency is still in a steep downtrend, even as it is back near the key 1.13 level, retracing a large chunk of Monday’s move.

A durable recovery above 1.13 could signal a failed break-down and another consolidation phase in the pair, with the long-term momentum indicators still being oversold, but the broad downtrend is clearly intact, and long positions should only be considered as short-term trades.

Nasdaq 100 Futures, 4-Hour Chart Analysis

In equities, we continue to see bearish technicals from a broader perspective, and although the post-Fed selloff halted, for now, the re-test of the October lows still seems likely in the coming weeks. The Nasdaq is still relatively weak compared to the other major US benchmarks, and the tech benchmark is the closest to its lows, even after yesterday’s bounce.

The overnight session saw a slight bullish bias in stocks, with the indices holding on to above their weekly lows, but we still view the short-term rally attempts as selling opportunities given the hostile technicals across the globe.

Crude Oil in Turmoil as Copper Holds Support, For Now

WTI Crude Oil, 4-Hour Chart Analysis

The bounce that we have been expecting in crude oil didn’t materialize despite the deeply oversold momentum readings, as the dip below the $58-$60 zone triggered a liquidation event in the commodity. The worst day for oil in 3 years saw the WTI contract falling below $55 per barrel, its lowest level in a year. Today, oil is attempting a recovery, and we continue to expect a rally up to the $63-$65 zone in the coming weeks.

Copper Futures, 4-Hour Chart Analysis

Elsewhere in the commodity segment, we are seeing further signs of weakness, despite the pullback in the Dollar. Gold is having a flat quiet day, so far, hovering near the $1200 price level, while despite the renewed trade-deal optimism, copper failed to bounce higher substantially amid the slight risk-on shift. The industrial metal is trading just above its recent swing low, and a move below that would be a sign that the lengthy consolidation phase is ending and the broader downtrend is about to resume.

ChartBook

Major Stock Indices

S&P 500 Futures, 4-Hour Chart Analysis

Dow 30 Futures, 4-Hour Chart Analysis

VIX (US Volatility Index), 4-Hour Chart Analysis

DAX 30 Index CFD, 4-Hour Chart Analysis

FTSE 100 Index CFD, 4-Hour Chart Analysis

EuroStoxx50 Index CFD, 4-Hour Chart Analysis

Nikkei 225 Futures, 4-Hour Chart Analysis

Shanghai Composite Index CFD, 4-Hour Chart Analysis

EEM (Emerging Markets ETF), 4-Hour Chart Analysis

Forex

USD/JPY, 4-Hour Chart Analysis

GBP/USD, 4-Hour Chart Analysis

EUR/GBP, 4-Hour Chart Analysis

AUD/USD, 4-Hour Chart Analysis

Commodities

Gold Futures, 4-Hour Chart Analysis

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...

4.7 stars on average, based on 394 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

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