Connect with us

Market Overview

Market Update: Dow Snaps Seven-Day Win Streak as Interest Rates Surge

Published

on

U.S. stocks declined sharply on Tuesday after Home Depot reported disappointing quarterly sales and government bond yields rose to their highest level since 2011.

// -- Discuss and ask questions in our community on Workplace.

Stocks Sink

All of Wall Street’s major indexes booked losses, with the Dow Jones Industrial Average snapping a seven-day winning streak. The blue-chip index fell 193.00 points, or 0.8%, to close at 24,706.41. Twenty-six of 30 index members contributed to the decline.

Shares of Home Depot fell more than 1.6% after the home improvement retailer reported slower than expected revenue growth during the first quarter. The sales miss offset an otherwise positive quarter of earnings.

// -- Become a yearly Platinum Member and save 69 USD. Click here to change your current membership -- //

The broader S&P 500 Index declined 0.7% to 2,711.45, with ten of 11 primary sectors ending lower.

Meanwhile, the technology-heavy Nasdaq Composite Index slid 0.8% to finish at 7,351.63.

The CBOE Volatility Index, also known as the VIX, jumped to its highest level in a week. Wall Street’s preferred measure of investor anxiety rose more than 13% to 14.63. VIX trades on a scale of 1-100, where 20 represents the historic mean. The fear index recently settled below 13.00, its lowest since late January.

Bond Yields Surge

Appetite for stocks was challenged on Tuesday after U.S. government bond yields surged to fresh peaks.

The benchmark U.S. 10-year Treasury yield, which moves inversely to its price, jumped to 3.07%. That was the highest level since 2011.

Yields have been rising steadily as investors continue to dump their holdings of U.S. government debt. The sell-off in U.S. Treasuries began silently in the first half of 2017 and has intensified in recent months. The sharp rise has been accompanied by growing expectations the Federal Reserve will raise interest rates at a quicker pace in the second half of 2018.

As of Tuesday, traders were pricing in a higher probability of a fourth rate increase in December. CME’s Fed Fund futures prices point to at least two more adjustments in June and September of this year.

Growing rate-hike bets fueled strong demand for the U.S. dollar, which rose on Tuesday to its highest level in five months. The dollar index (DXY) climbed 0.7% to 93.26, boosting its one-month returns to 4.3%.

Cryptocurrency Markets Falls Below $400 Billion

The cryptocurrency market ran into resistance on Tuesday, with altcoins shouldering the bulk of the declines.

Digital currencies shed $14 billion in market cap, reaching a total of $394 billion, according to CoinMarketCap.

EOS was the biggest decliner in the top-ten, falling 8.2% to $13.20. Bitcoin cash fell 7% to $1,363.

Bitcoin fell 3% to $8,550 but its share of the total market rose slightly to $36.9%.

Digital currency exchange Upbit was vindicated on Tuesday after a South Korean accounting firm confirmed that the exchange did not falsify its records to deceive investors. Upbit was subjected to a raid late last week by South Korea’s financial watchdog in conjunction with local police forces.

People familiar with the probe say investigators were tipped off by an apparent liquidity shortfall at the exchange. At the time the raid took place, Upbit had enabled wallets for roughly 90 cryptocurrencies despite advertising a total of 130 digital assets.

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.
1 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 5 (1 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

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.




Feedback or Requests?

Market Overview

Huobi Pro Unveils 10-Currency Crypto Index

Published

on

Digital currency exchange Huobi Pro is launching a new crypto market index for its customers, the latest in a series of initiatives designed to boost cryptocurrency adoption.

// -- Discuss and ask questions in our community on Workplace.

Huobi Main Force Index

The Singapore-based exchange announced Wednesday it will be launching the Huobi Main Force Index, which is designed to track ten large digital assets pegged to Tether (USDT), a dollar-pegged cryptocurrency. Beginning next month, traders will be able to access the index in real time on the Huobi Pro platform.

According to an official press release, the ten-currency index will “reflect the overall performance of the Huobi Pro market,” providing investors with a single point of reference. The company has not provided any details about which currencies will be included in the index, although names like bitcoin, Ethereum, Litecoin and Ripple XRP are likely to be included.

“Assets will be ranked according to their turnover, and top assets of each category will be selected as index samples,” read the press release. “After samples are selected, the sample weight will be calculated based on the daily average trading volume of the previous quarter.”

// -- Become a yearly Platinum Member and save 69 USD. Click here to change your current membership -- //

Huobi has also set up a contingency plan for cryptocurrencies that are delisted from the exchange. In this case, the sample will be “temporarily replaced,” while remaining coins “that are ranked first in the candidate list will be selected as the sample coins in turn.”

The exchange plans to offer other market-tracking indices in the future, though it declined to comment on specifics.

Huobi is the world’s third-largest cryptocurrency exchange by volume with daily turnover of more than $1.1 billion.

Crypto Market Innovation on the Rise

Indexing is just one of a series of innovations influencing the cryptocurrency market. It joins derivatives, publicly-traded funds, private funds and hedge funds in ushering a new era of cryptocurrency trading whose influence extends far beyond the retail investor.

Digital currency exchange Coinbase recently announced a new suite of products targeting institutional investors, including custodial services that offer more safeguards for crypto holdings. The San Francisco-based exchange believes it can unlock up to $10 billion in institutional money currently sitting on the sidelines.

Hedge funds are increasingly pivoting toward cryptocurrency, with the number of ‘crypto hedge funds’ surging 64% over the past year. More than 100 hedge funds have been launched to trade cryptocurrency exclusively over the period.

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...

4.5 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.




Feedback or Requests?

Continue Reading

Market Overview

Satisfaction & Exploitation

Published

on

Hi Everybody,

// -- Discuss and ask questions in our community on Workplace.

In the dark hours of the night, the cryptocurrency known as Verge fell victim to another major hack. Shortly after Verge had been assessed by the People’s Bank of China as being on the same level as Bitcoin.

This incident is a perfect example of how even the most gorgeous looking piece of tech can be vulnerable if its assets are underutilized. In other words, the network effect is only useful if the network is popular. If the audience is simply not attracted the network itself becomes vulnerable.

The user that reported the whole affair, apparently the same person who reported it last time Verge was hacked, submitted this image to show what the hacker had done.

// -- Become a yearly Platinum Member and save 69 USD. Click here to change your current membership -- //

Now, I don’t understand any of this code, but what happened here is quite clear. Basically, this guy just had his way with a network by exploiting the fact that it was going unused and now the evidence is everywhere.

@MatiGreenspan
eToro, Senior Market Analyst

Today’s Highlights

  • Unsatisfied President
  • Evasive Founder
  • Some Dry Crypto Updates

Please note: All data, figures & graphs are valid as of May 23rd. All trading carries risk. Only risk capital you can afford to lose.

Traditional Markets

The whole “trade war is on hold” narrative didn’t seem to last very long at all. Yesterday, President Donald Trump expressed that he is not satisfied with the way things are going there, indicating that this whole saga is far from over.

In addition, Trump cast further doubt that the planned meeting with Kim Jong Un in Singapore June 12th will go forward.

Stocks didn’t like these updates one bit and major indices around the world are in deep red.

What seems to me, the more defiant Trump gets the stronger the Dollar gets. The US Dollar is gaining against most of the major currencies in what we can see as a clear flight to safety in the FX market.

That big 1% green spike in the Japanese Yen is not normal and is a clear indication that Asian investors are searching for a safe haven.

This evening at 19:00 GMT, we’ll receive the minutes from the Fed’s last meeting and crude oil inventories coming out at 15:30 are forecasted to show 2.5 million fewer barrels of oil in the United States.

In Your Facebook

Mark Zuckerberg’s trip to Europe most likely didn’t go as well as he’d hoped. Whether you heard Laurel or Yanni, you can probably tell that the Facebook Founder was dodging questions left and right.

EU lawmakers asked him some very pointed questions but the answers they received were incredibly vague. We can likely expect that privacy-centric Europe will not sit on their hands with this one as the Yanks have done.

If investors are worried, it didn’t show up at all in the stocks price. As we can see, FB stock has already made a full recovery since the Cambridge Analytica revelations and is now holding near all-time highs.

Dry Crypto

It’s hard to be happy when everything is in the red like this but we can probably be comforted by the fact that we’re still off the lows.

As a reminder, here’s the bitcoin chart we’ve been watching. As you can see we’re still a few hundred dollars above the main support level circa $7,100.

Two positive things that happened recently in this space are worth mentioning.

First, the CFTC has gone one step further into their support of cryptocurrencies by releasing an Advisory for exchanges to list cryptocurrency derivatives. In their own words….

The second update is not as clear-cut but could have much larger implications. This article was forwarded to me by a dear friend in India this morning.

As we know, India’s central bank, the RBI, has released a circular ostensibly banning banks from dealing with crypto-affiliated businesses, something that has been choking the market in a key region.

The linked article explains that the Indian government may now be considering to release a full tax regiment for bitcoin and other digital assets, which would tax crypto-transactions as if they are considered actual property.

Now, the key source for the article is still anonymous so we would need to rely on Bloomberg Quint’s assessment of if he/she can be considered a reliable witness or not, but if the government does implement such measures it could be an indication that they feel the RBI’s ban will not last much longer. Otherwise, why waste your time collecting taxes on something that’s not transactable?

For me, I can’t help but get goosebumps every time I think about the possibility of the Bitcoin “digital gold” network being opened up to a country of 1.35 billion people, who are in dire need of a reliable payment network.

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.

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.

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.
2 votes, average: 4.00 out of 52 votes, average: 4.00 out of 52 votes, average: 4.00 out of 52 votes, average: 4.00 out of 52 votes, average: 4.00 out of 5 (2 votes, average: 4.00 out of 5)
You need to be a registered member to rate this.
Loading...

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




Feedback or Requests?

Continue Reading

Analysis

Pre-Market: Turkish Lira Spooks Markets, as Dollar Still in Focus

Published

on

Stock markets are broadly lower today, as yesterday’s risk-off shift continues to dominate trading, with the Turkish currency woes, the Italian political standoff, and the weaker than expected European PMIs providing ample ammunition to bears.

// -- Discuss and ask questions in our community on Workplace.

S&P 500 Futures, 4-Hour Chart Analysis

While the post-crash period since early February had its ups-and-downs, the best way to describe it is still a simple consolidation. In the US, trading has been taking place mostly in the range of only two sessions in early February, and the S&P 500 is still stuck in the middle of that range.

// -- Become a yearly Platinum Member and save 69 USD. Click here to change your current membership -- //

Forex markets are in turmoil, as Dollar-centered trading continues across the board, and the hunting season for vulnerable emerging market currencies is still on. The recent strength in the reserve currency together with the rising yields sparked an exodus from more risky assets across the globe and with the Euro hitting another 6-month low today, the pressure will likely persist. Investors await tonight’s Fed meeting minutes which could make a huge impact on the Dollar and equities, especially if the central bank cools down rate hike expectations after the strong Dollar rally.

EUR/USD, 4-Hour Chart Analysis

First, it was Argentina, now it’s Turkey that’s in the center of attention, as the country plagued by a huge private Dollar debt load end rampant inflation is highly sensitive to rising rates and a weaker currency.

USD/TRY (Turkish Lira), Daily Chart Analysis

More experienced investors could have a strong feeling of déjà vu, as the Turkish leadership is blaming a concentrated attack against the country, while the market is waiting for the inevitable central bank intervention in the form of an emergency rate hike. For now, there is still hope that the storm will pass, but should an outright currency crisis break-out, rate hikes won’t be enough, and even capital controls will only provide a temporary solution, and a hard landing for the economy will be almost guaranteed.

Europe Also Down as Oil Pulls Back

DAX Index, 4-Hour Chart Analysis

European stocks which have been lifted by the falling Euro in recent weeks fell to two-week lows today, after the bearish PMI releases and the lower than expected British inflation figures. While the string of negative economic surprises continued, emerging market woes were largely ignored by investors so far, and the rising short-term trends are still mostly intact throughout the Old Continent.

Commodities are lower mixed amid the large currency moves, as the Dollar’s strength weighs on the whole asset class. Gold is still stuck below $1300 despite its recent resilience, while Oil is trading just off its highs, even as the OPEC is reportedly contemplating a supply increase following the “normalization” of oil prices. The cartel which, led by Saudi Arabia has openly been seeking higher prices

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...

4.5 stars on average, based on 255 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 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