Connect with us

Market Overview

Market Update: Asian Stocks Steady as Investors Brace for Most Important Week of the Year

Published

on

Stock markets throughout Asia traded higher on Monday, as investors cautiously awaited a flurry of activity tied to geopolitics and monetary policy over the next five days.

Asian Stocks Trade Higher

Markets from Japan to Hong Kong were off to a positive start Monday. Japan’s 225-issue Nikkei gained 0.6% by the early afternoon session. The Topix Index, another Japanese benchmark, gained 0.5.%.

Over in Hong Kong, the Hang Seng Index rose 0.3% by midday local time. Mainland China’s CSI 300 Index was up 0.2%.

Futures trading was mixed for U.S. and European indexes, which pointed to a soft start to the day on Monday. Dow Jones mini futures were up 22 points at 12:29 a.m. ET. S&P 500 and Nasdaq minis were down slightly.

In commodities, U.S. oil futures traded below $66 a barrel after a Friday report showed another uptick in domestic drilling operations. ICE Brent futures also traded slightly lower ahead of a planned output hike from Saudi Arabia and other major producers.

In currencies, the U.S. dollar steadied against a basket of peers as investors awaited new developments on the economic and policy fronts. The dollar index (DXY) is down roughly 1.4% from last month’s high.

Most Important Week of the Year?

The wave of events over the next five days has Bank of America asking clients whether the world economy is headed for the most important week of the year. A tumultuous end to the G7 Summit in Quebec, where President Trump refused to endorse a joint communique, punctuated what is expected to be a volatile week for the financial markets.

Kit Juckes, a global strategist with Societe Generale SA, told investors not to be “lulled into a false sense of security” following Monday’s tepid start.

As President Trump prepares for his summit in Singapore Tuesday with North Korea’s Kim Jong-un, the U.S. Federal Reserve will begin its two-day policy meeting in Washington. The official rate announcement, which is scheduled the following afternoon, could provide important guidance on the pace and timing of future interest rate adjustments.

The European Central Bank (ECB) will also conclude policy talks later this week as policymakers ready for the gradual unwinding of their multi-year stimulus program. Although no change in policy is expected, ECB officials could spell out their plans for July and beyond.

Meanwhile, British Prime Minister Theresa May is expected to urge fellow Conservatives to unit behind the party ahead of a landmark vote on the EU withdrawal bill. Prime Minister May wants to deliver Brexit, but will have to contend with rebels within her own party who oppose her exit strategy.

Brexit Secretary David Davis is scheduled to arrive in Brussels on Monday for another round of neogtiations with EU counterpart Michael Barnier.

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 555 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?

Market Overview

Market Update: U.S. Stocks on Verge of Longest-Ever Bull Market

Published

on

U.S. stocks notched their fourth consecutive advance Tuesday, as the S&P  500 Index approached its longest-ever bull market.

S&P 500 Approaches Record

All of Wall Street’s major indexes booked solid gains, with the S&P 500 Index touching a new intraday high. The large-cap average reached a high of 2,873.23, which would have marked the best close on record. It would later settle at 2,862.96 for a gain of 0.2%.

Seven of 11 primary sectors tracked by the index finished in positive territory, with indystrials and consumer discretionary shares leading the market higher.

The Dow Jones Industrial Average rose 63.60 points, or 0.3%, to 25,822.29, its highest since January.

A strong performance in technology pushed the Nasdaq Composite Index higher by 0.5% to 7,859.18.

A measure of implied volatility known as the CBOE VIX traded near two-week lows, signaling renewed calm on Wall Street. The so-called “fear index” touched a low of 12.09 on a scale of 1-100 where 20 represents the historic average. It would eventually settle at 12.86.

The Bull Market Endures

According to The Wall Street Journal, Wednesday will mark 3,453 days since the S&P 500 Index reached a low of 666. In doing so, it will surpass the 1990-2000 bull market as the longest in history.

While stocks have more or less broken even over the past seven months, they have shown remarkable growth since Donald Trump won the presidency in November 2016. The latest leg of the bull market was spurred on by corporate tax cuts, strong quarterly earnings and optimism that Trump’s economic policies will invigorate long-term investment and growth. This comes despite growing concerns tied to free trade, geopolitics and rising inflation.

Although stocks aren’t cheap, some analysts believe the bull market will continue on for several years into the future. Chief among them is Tom Lee of Fundstrat Global Advisors, who told CNBC back in January that the bulls have another decade to control the market.

Bitcoin Shows Poise

Bitcoin continued to trade in a narrow range on Tuesday, as the leading digital currency came away with an even larger share of the overall market. The bitcoin price touched a high of $6,526.20 on Bitfinex. It would later consolidate at $6,429 for a gain of 2.5%. At current prices, BTC accounts for 53% of the entire cryptocurrency market capitalization.

The leading cryptocurrency has held above $6,000 throughout much of the recent downturn, a strong sign that a new price bottom has formed.

Overall trading volumes for BTC averaged $3.8 billion on Tuesday, down sharply from last week’s levels. As Hacked previously reported, bitcoin’s daily volume needs to exceed $4 billion for a sustained rally to materialize.

The broader cryptocurrency market edged slightly lower on Tuesday, with Ethereum, EOS and bitcoin cash all posting declines. The poor performance was associated with a marked drop in trading volume, as total market turnover fell below $11 billion for the first time in two weeks.

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 555 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

Market Overview

Back to Normal

Published

on

Hi Everyone,

Here’s a graph for you. It certainly impressed me when I saw it yesterday.

It shows how even though the price has declined since the beginning of the year, eToro clients have not only maintained their positions, but are actually increasing their bitcoin holdings.

The graph was inspired by a recent article in which our CEO and founder Yoni Assia stated that…

After I posted the graph on Twitter, one user was quick to point out that there are many more buyers now and so the increased amount of holdings actually shows that each individual investor is holding less.

While that may be true, it actually serves to strengthen the case that demand is holding strong. If more people want to hold bitcoin, that grows the network, even if they’re holding it with less allocation in their portfolio.

@MatiGreenspan
eToro, Senior Market Analyst

Today’s Highlights

  • Market Manipulation
  • Dollar Pullback Relief

Please note: All data, figures & graphs are valid as of August 21st. All trading carries risk. Only risk capital you can afford to lose.

Traditional Markets

Whatever you feel about him, President Donald Trump’s garish rhetoric has been great for traders who like volatility. This latest headline is particularly punchy…

Just as China and the United States have started preparing for some fresh rounds of trade talks, President Trump, true to his style, has spiced things up by placing things off kilter in a way that now seems quite normal.

This comes after a report from Trump’s own administration published in April stopped short of making any such labels. In fact, the USA hasn’t officially labelled any country as a currency manipulator since 1994.

Looking back since the start of 2017, if either China or the EU have been trying to deliberately weaken their respective currencies, they haven’t been doing a very good job of it.

Dollar Pullback

Zooming in a bit to the movements of the day…

The US Dollar is finally showing some signs of weakness, which is providing some much-needed relief for the rest of the markets. In fact, it seems like investors are even ready to take on a bit more risk today as the stocks climb and the precious metals have bounced off the lows.

On the left, we can see the US Dollar Index, which seems to have peaked last Wednesday. On the top right is the NASDAQ, which is toying with it’s all-time high and on the bottom right is gold’s retracement off the long-term lows.

Crypto Section

Let’s leave this section deliberately blank for today. We’ve shown the chart about Bitcoin’s stable range too many times to count.

As mentioned, a steady price range is healthy for Bitcoin as it increases it’s use as a stable store of value and gives developers of the network more time to build the infrastructure that will be needed going forward.

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...

4.7 stars on average, based on 122 rated postsSenior Market Analyst at Etoro.com.




Feedback or Requests?

Continue Reading

Market Overview

Market Update: U.S. Stocks Rise on China Trade Optimism; Bitcoin Holds Firm as Volatility Plummets

Published

on

U.S. stocks advanced Monday, with the S&P 500 inching closer to record highs as investors held onto hopes for an easing of the trade war with China.

Stocks Rise

All of Wall Street’s major indexes recorded gains in early-week trading, with the S&P 500 Index coming within half a percentage point of record highs. The large-cap average eventually settled at 2,857.05, having gained 0.2% from the previous close.

The Dow Jones Industrial Average rose 869.37 points, or 0.3%, to close at 25,758.69, its highest since January.

The technology-focused Nasdaq Composite Index advanced 0.1% to 7,821.01.

Shares tied to primary industries were among the best performers Monday. The S&P 500’s energy index rose 0.6%, while industrials and materials rose at least 0.7%.

A measure of implied volatility known as the CBOE VIX edged slightly lower on Monday to reach its lowest level in ten days. The so-called “fear index” fell 1.4% to 12.46 on a scale of 1-100 where 20 represents the historic average.

Path of Least Resistance

Wall Street’s path of least resistance is higher following news that the U.S. and China are looking to rekindle trade negotiations later this month. As Hacked reported Friday, Washington and Beijing are plotting a road map for resolving their lingering trade dispute.

Markets are striking a more optimistic tone in the wake of yet another solid earnings quarter. Low trade volumes are also expected to keep the upward momentum on track heading into next month’s Labor Day weekend.

In terms of upcoming events, the Federal Reserve on Tuesday will publish the transcript of its most recent policy meeting, where officials voted to keep interest rates on hold. Later this week, global finance leaders will arrive in Wyoming for the annual Jackson Hole Symposium.

Bitcoin Holds Firm

The bitcoin price continued to trade in a narrow range on Monday, though the technical charts showed greater potential for upside. The leading digital currency traded at $6,452 on Bitfinex after hitting a high of $6,524. At current values, bitcoin owns 52.2% of the total cryptocurrency market cap.

In other news, USDT has moved into eighth spot on the market cap rankings after Tether, its issuing company, printed $415 million worth of the stablecoin this month. USDT now has a market capitalization of $2.7 billion, leapfrogging Cardano’s ADA coin.

The cryptocurrency market’s combined value on Monday was $214.2 billion, little changed compared with 24 hours ago. Trade volumes hovered above $11.2 billion, which was consistent with Sunday levels.

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 555 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

5 of 15 Seats Available

Learn more here.

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