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Asian Market Update – Wednesday: Cryptocurrencies stand firm after losses yesterday; Asian stocks tracks global rally

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Cryptocurrency prices were trading higher during Asian trading on Wednesday morning, with bitcoin stabilizing above $8,100 and ethereum and litecoin also making slight gains.

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Bitcoin was up 0.81 percent to about $8,167 before midday in Asia. The gains were made after bitcoin dropped earlier in the morning to find support north of the $8,000 line.

On Tuesday, bitcoin dropped from $8,252 to $7,851 before climbing all the way back to about $8,340.

Ethereum also pointed higher around midday, gaining 0.61 percent to about $357. Ethereum also appears to have hit support earlier in the morning when it fell from $369 to $36.

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Litecoin surged 1.32 percent to about $70 at midday in Asia. With the gain on Wednesday morning, Litecoin erased a big chuck of the losses seen yesterday, when the coin dropped about 4 percent.

Main Market Movers – Mid-day Asian Trading Session

Indexes Value at Midday Daily Change
Japan- Nikkei 225 22,590 0.78%
China-Shanghai Composite Index 3,428 0.53%
Hong Kong –Hang Seng 30,090 0.91%
South Korea – KOSPI 2,542 0.46%
Australia-ASX 200 5,996 0.55%
S&P 500 E-Mini Futures 2,597 0.06%

Major Asian equity indexes were trading higher Wednesday morning, tracking global stocks in a rally, with bigger gains seen in Tokyo and Hong Kong.

The Nikkei gained 0.78 percent to 22.590 before midday.

On the Chinese mainland, the Shanghai Composite Index was up 0.53 percent to about 3,428 before midday. In Hong Kong, the Hang Seng Index was 0.91 percent lower at around 30,090.

In South Korea, the Kospi added 0.46 percent to 2,542 before midday.

Down Under, the ASX 200 was up 0.55 percent to 5,996 in Australian afternoon trading.

The S&P 500 E-Mini Futures was 0.06 percent higher at 2,597.

The gains in Asian stocks were in line with rallies in the global financial market, with investors showing optimism about the global economic recovery and a prospect that the US could pass the much discussed tax reform.

Positives signs have been reported in major economies such as Germany, the US, Japan and China, suggesting a solid recovery for the global economy and a boon to financial markets.

Currencies

The Japanese yen gained 0.1 percent the US dollar at midday Wednesday to 112.32 per dollar.

The Chinese yuan lost 0.03 percent against the US dollar at 6.6287 per dollar.

The Australian dollar also lost 0.13 percent on the dollar, changing hands at 1.3212per dollar at midday.

Commodities

WTI Oil was up 0.12 percent to $57.66 per barrel.

Brent Crude gained 0.54 percent to $63.01 per barrel.

Gold was up 0.05 percent to trade at $1,281 an ounce.

Business News across Asia

In China, authorities are cracking down on the country’s rising micro online lending sector. The top office that oversees online lending has issued a notice to local government to stop issuing licenses to small online lending firms.

Take Away: The move is part of the country’s top priority to fend off systemic financial risks, coordinated by a new government committee that is making its print in financial regulation.

In Australia, local retailers have been told by Amazon to prepare to take orders starting on November 23, when the US e-commerce giant goes live in the Australian market. Amazon confirmed in April that it would expand to Australia, but did not give any specific date.

Take Away: By announcing the data early and choosing a date just one day before this year’s Black Friday, Amazon is surly trying to make a fuzz about its Aussie debut.

Featured image from Pixabay.

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 32 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 Overview

Market Update: Stock-Rally Falters with U.S.-China Trade Talks in Focus

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U.S. stocks declined in the final hour of trading Tuesday, with the S&P 500 Index giving up earlier gains as investors evaluated ongoing developments in U.S.-China trade negotiations.

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Stocks Finish Lower

After trading in positive territory throughout the day, the S&P 500 Index reversed course to settle down 0.3% at 2,724.44. Losses were concentrated in seven of 11 primary sectors, with energy and industrials registering the biggest declines.

The technology-heavy Nasdaq Composite Index also gave up gains, finishing down 0.2% at 7,376.46.

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The Dow Jones Industrial Average hastened its decline in the final hour, falling 178.88 points, or 0.7%, to 24,834.41. The blue-chip index settled above 25,000 on Monday for the first time since March.

The CBOE Volatility Index, commonly known as the VIX, hovered within a narrow range on Tuesday and eventually settled at 13.22. That’s about seven points shy of the historic average, which signals prevailing calm on Wall Street.

U.S.-China Trade Tensions Ease

China’s Finance Ministry announced Tuesday it will lower auto tariffs to 15% from as high as 25% while cutting duties on parts to as low as 6%. The tariff reduction was announced three days after a White House memo confirmed China’s willingness to purchase more U.S. goods and services.

Treasury Secretary Steve Mnuchin has confirmed that trade talks between the U.S. and China were progressing favorably, quelling fears about a looming trade war.

The Trump administration has called on China to up its purchase of U.S. goods by a significant amount to reduce Washington’s trade deficit with the country, which swelled to $375 billion last year.  President Trump cranked up the pressure on Beijing earlier this year by announcing $50 billion in tariffs on Chinese goods.

Cryptocurrencies Rangebound as Trade Volumes Drop

Digital currency prices drifted lower on Tuesday as overall trade volumes continued to decline. At the time of writing, total transactions were valued at $15.2 billion over the past 24 hours. That represents a decline of about $6 billion from last week.

The combined value of all cryptocurrencies hovered between $368 billion and $383 billion on Tuesday. Prices were last seen trading at the lower end of that range.

The majors were down across the board, booking losses between 2% and 6.2%. Bitcoin prices briefly fell below $8,200 but later recovered near $8,221. Bitcoin cash was the biggest decline in the top ten, falling more than 6% to $1,162.

Cryptocurrencies continue to trade without direction following last week’s Consensus blockchain summit. Regulatory uncertainty and slower than expected institutional adoption have been cited as reasons for the slow trading environment.

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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4.5 stars on average, based on 410 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

Happy Pizza Day!

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On this day eight years ago the first ever real-world cryptocurrency transaction took place. Wherever he is, Laszlo Hanyecz is probably kicking himself for parting with 10,000 BTC for two Papa John’s pizzas.

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On the other hand, had that transaction never happened, Bitcoin may have forever remained a cryptographic hobby. By realizing the first ever transaction, Laszlo was able to transcend what was then considered possible and change everyone’s perspective on money.

Everyone, that is, except for a few elite holdouts. Professor Robert Shiller is one no-coiner who’s opinion is widely respected. So his any-crypto blog post yesterday really stung the community.

Of course, if you read carefully, he isn’t really bashing Bitcoin. He makes some valid points about the ICO market but I do believe that even the most hardcore crypto-zealots can agree with 93% of what Shiller is saying and possibly learn something from it.

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Creating a new currency is not something that should be taken lightly. Give a monkey a choice between a $100 bill and a banana and he’ll take the banana every time, not that anybody here is a monkey. Bitcoin, Litecoin, and Dash have already challenged the perception of money in the minds of many.

Over the next few years, we’ll likely see attempts from more corporate institutions. Telegram and Kik are already working on their own prototypes but who knows, we could be looking at similar implementations from Facebook or Amazon really soon.

At the end of the day, it might not really matter as long as we don’t lose sight of what’s really important… are we able to get as much pizza as we need?

@MatiGreenspan
eToro, Senior Market Analyst

Today’s Highlights

  • Mixed Stocks
  • Whole lotta Politics
  • Zuckerberg in Europe

Please note: All data, figures & graphs are valid as of May 22nd. All trading carries risk. Only risk capital you can afford to lose.

Traditional Markets

By the looks of it, the relief rally from the pause in the trade war may be over by now. If markets want to carry these incredible gains, they may need to find a new narrative. Perhaps, just the fact that they’re still well under all time highs might be enough.

Still, despite the apparent buying mood in the United States yesterday, stocks are rather mixed in Asia and Europe this morning.

Geopolitics in Focus

The Inflation Report hearings in front of the Treasury Select Committee in the UK seemed to have given the Pound a nice sugar rush and managed to take the GBPUSD off the lows. It will be interesting to see if momentum carries on.

Other than that, the economic calendar is rather quiet today. So focus will likely be on world leaders. Many of whom are moving around quite a bit.

We have the President of South Korea visiting the United States today. Presumably, Moon and Trump will discuss the upcoming meeting with Kim Jong Un.

Emmanuel Macron will be visiting Putin as well this week. Their topic of discussion will likely revolve around Trump’s new policy towards Iran. A policy that Secretary of State Mike Pompeo laid out in a speech yesterday that some are calling silly.

Silly or not, Pompeo’s airtime (purple circle) seems to have sent Oil to fresh highs.

Over in Italy, things seem to be progressing as well, though it’s not clear to what end. The Five Star Party and the League now agree that the Prime Minister should be a little-known professor named Giuseppe Conte, but he still needs to get the blessing of President Mattarella, who may or may not confirm the position.

Either way, this Italian thing is far from over. The two parties who are now joining in coalition seem likely to try and play hardball with Europe and we’ve seen these type of things have large impacts on markets before.

What Else?

Also, watch out for Mark Zuckerberg’s testimony to the European parliament. This is likely to be a lot more fast-paced and in-depth than the American version. EU lawmakers are arguably more comfortable with technology than their American counterparts and have less time for evasion.

Also, as Zuckerberg denied the opportunity to appear in front of the UK’s House of Commons, UK politicians have reportedly passed on a list of 50 questions they’d like to have answered by the tech giant billionaire.

The entire event will be streamed live on the internet from 18:15 to 19:30 Brussels time. This should be fun.

Dash = Digital Cash

ICYMI: Here is our latest crypto research paper: eToro.tw/Research-Dash
(Spoiler alert: According to our estimation, and given the high use and network value of Dash, this coin is notably undervalued compared to other cryptocurrencies.)

Wishing you 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

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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4.6 stars on average, based on 86 rated postsSenior Market Analyst at Etoro.com.




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Market Update: Dow Industrials Surge as Risk of Trade War Fades

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U.S. stocks advanced sharply on Monday, with the Dow adding nearly 300 points amid signs that the United States and China would resolve their ongoing trade dispute.

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Stocks Surge

All of Wall Street’s major indexes booked solid gains at the start of the week. The Dow Jones Industrial Average jumped 298.27 points, or 1.2%, to 25,013.36. That was the index’s first settlement above 25,000 in over two months.

All but two of the index’s 30 members finished higher, with Boeing Company (BA) and General Electric Co (GE) leading the market higher.

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The broader S&P 500 Index gained 0.7% to close at 27,33.01. Ten of 11 primary sectors contributed to the positive result, with industrials and telecommunication services leading the rally.

The technology-heavy Nasdaq Composite Index climbed 0.5% to close at 7,394.04.

A measure of implied volatility known as the CBOE VIX edged slightly lower on Monday, signifying underlying calm on Wall Street. The so-called “fear index” closed at 13.08 on a scale of 1-100 where 20 represents the historic mean.

U..S.-China Trade Negotiations

China has agreed to “substantially” reduce its trade surplus with the United States, according to an official statement released by the White House on Saturday.

“China will significantly increase purchases of U.S. goods and services,” the statement read while adding that specific details would be worked out at a later date.

White House economic adviser Larry Kudlow told reporters that Beijing had agreed to reduce the deficit by “at least” $200 billion – a number that China quickly denied.

The U.S. trade deficit with the Chinese stood at $375 billion in 2017. However, that’s only the tip of the iceberg in terms of the real cost of trade with the world’s second-largest economy. The Trump administration believes China’s theft of U.S. intellectual property costs the economy between $225 billion and $600 billion per year.

Cryptocurrencies Ebb Lower

Digital currency prices drifted lower Monday after posting strong gains overnight, as bitcoin and the major altcoins shed more than $10 billion in collective market cap.

At the time of writing, the total cryptocurrency market was valued at $381 billion, according to CoinMarketCap. The market was worth as much as $393 billion earlier in the day.

Trading volumes continued to hover below $17 billion, which is roughly 20% lower than the end of last week.

Bitcoin declined 1.5% to trade at $8,402. Prices bottomed near $8,365 earlier in the session.

Ethereum fell 3.3% to $697, while Ripple XRP shed nearly 4% to trade at $0.681.

Bitcoin cash fell nearly 5% to $1,236, extending its post-fork slump.

Tron was the only positive performer in the top-ten, with the value of TRX rising 4.2% to $0.081.

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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4.5 stars on average, based on 410 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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