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Asian Stocks Follow Wall Street Higher as Irma Damage Off by $150 Billion

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Asian stocks rose sharply on Tuesday, following Wall Street’s record-breaking rally after Irma’s westward shift probably saved Florida $150 billion in damages.

Asia Markets Rise

Asian equity markets followed their U.S. counterparts higher on Tuesday, with Japanese stocks leading the rally. Japan’s Nikkei 225 Index is up 1% in the early afternoon. The Tokyo Topix Index is trading 0.8% higher.

The MSCI AC Asia Pacific Index was also up half a percent.

Mainland China saw mixed results on Tuesday, with the CSI 300 Index posting only modest gains. In Hong Kong, the Hang Seng Index hovered right around break-even.

In Australia, the S&P/ASX 200 Index climbed 0.7%.

A weaker-than-expected Hurricane Irma propelled U.S. stocks higher on Monday.  The benchmark S&P 500 Index rose 1.1% to 2,488.11, its first record high in over a month.

A measure of 30-day volatility known as the CBOE VIX fell more than 11% to its lowest level since Sept. 1. The so-called “fear index” closed at 10.73, which is around half the historic mean.

Irma’s Westward Shift

Hurricane Irma made landfall in Florida on Sunday as a Category 4 storm, but a westward shift away from Marco Island averted ‘astronomical‘ damage. According to analysts, those 20 miles probably made a $150 billion difference.

Forecasters last week had pegged Irma’s damage at around $200 billion, easily tops among U.S. Atlantic hurricanes. By at least one estimate, the total cost of the damage fell to around $50 billion as the storm weakened considerably as it approached inland.

Having already been downgraded to a tropical storm, Irma is expected to continue through Alabama and Mississippi over the next 24 hours.

Irma could end up costing less than Hurricane Harvey, which wreaked havoc on southeastern Texas last month. The price tag of Harvey could reach $75 billion, according to one estimate.

Hurricane Katrina required the most expensive cleanup efforts in U.S. history at $160 billion.

Economic Data in Focus

The reporting schedule picks up briskly on Tuesday, with the United Kingdom scheduled to release a batch of consumer inflation data. Reports on consumer price inflation and factory-gate prices will make headlines in the European session.

On Wednesday, Germany will its final batch of August inflation figures. Later in the session, the U.K. will publish its latest employment figures.

Meanwhile, the U.S. Labor Department will release the producer price index (PPI) in mid-week trade. Reports on retail sales and consumer inflation will make headlines in the latter half of the week.

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

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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