Stock markets conditioned to run on central bank support

Bank

Market movement Stocks and oil prices fell on Thursday after the U.S. Federal Reserve intimated it could soon cut back its support An increase in the spread of covid-19 delta variant, signs of Chinese economic weakness and the Taliban’s takeover of Afghanistan also spooked investors. FTSE 100, Dow and S&P 500 FTSE 100 was down 1.5% in afternoon trading. The Dow Jones fell 86 points at the open, while the S&P 500 lost 0.40%. Later, Nasdaq and S&P 500 eked out small gains. U.S. markets % change Value Change Dow…

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Asia stocks lower as global recovery slows and Covid cases climb

Pandemic and the economy

Asia stocks lower Shares were mostly lower in Asia on Friday after U.S. stocks struggled amid uncertainty over rising Covid-19 cases and new risks appearing. Nikkei index closed down at: 28000 a drop of around 276 points On Thursday, U.S. stock indexes closed mostly down from recent highs. Asia stocks followed suit amid a rise in pandemic cases slowing global economic growth. Some 111 countries now have the delta variant as the prominent strain. U.S. indices The S&P 500 closed down at: 4360 The index may now show its first…

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China’s GDP reportedly grew 7.9% in the second quarter

China GDP

The country’s gross domestic product (GDP) reportedly increased 7.9% in the second quarter from a year ago, the National Bureau of Statistics reported Thursday. Retail sales rose 12.1% in June from a year ago. Industrial production grew by 8.3%. Sustained recovery China’s economy sustained a steady recovery – the statistics bureau reportedly said. But the bureau added there were still concerns about the global spread of the pandemic and ‘unbalanced’ recovery domestically. But… On the face of it these numbers are pretty impressive – they usually are. But in other…

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Bitcoin mining became more profitable as system algorithm adjusts after crackdown in China

Tech stocks

Hashrate drops More than 54% of bitcoin’s hashrate, which is the collective computing power of miners worldwide, has dropped off the network since its peak in May. The Bitcoin code has re-calibrated to make it approximately 28% less difficult to mine. Miners who are still plugged into the network stand to make greater profits while most of the network’s miners move offline. It just became substantially easier and much more profitable to mine for Bitcoin. Bitcoin mining puzzles A bitcoin miner runs a program on a computer to try to…

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China’s official manufacturing PMI dropped in June

China stocks

Official PMI data shows dip in reading An official report released 30th June 2021 of China’s factory activity is reported to have recorded a slight drop, as a shortage in computer chips and power problems slowed production. China’s official manufacturing purchasing managers index (PMI) – fell to 50.9 from 51.0 in May, according to the National Bureau of Statistics. The reading was higher than the 50.7 average forecast expected by analysts and remained above 50, which as we know separates expansion from contraction. Index The index measuring production declined to…

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A Chinese cryptocurrency mining set-up is reportedly closing down its operations

Digital Money

Bitcoin ‘mining’ production is energy inefficient In a bid to cut down on vast energy consuming operations, China is reported to have made plans to ban new cryptocurrency mining projects and shut down existing activity. It is estimated that one such bitcoin mining operation consumes some 128 terrawatt hours of energy, per year. That’s more than an entire country might use with a population of about 45 million people, such Argentina. It is also estimated that this single Bitcoin mining site, based in Mongolia, represents 8% of all global bitcoin…

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Deal’s off! Deal’s on! Confused?

USA China Deal

Markets whipsawed overnight as the U.S. – China phase one trade deal came into question. Doubt was cast over the deal after Peter Navarro, trade adviser to President Trump, said the U.S.-China trade deal was over, prompting a sharp fall in stocks. He was quickly forced to retract the statement, saying it was taken out of context – apparently, before Donald Trump himself quickly tweeted, ‘The China Trade Deal is fully intact. Hopefully they will continue to live up to the terms of the Agreement!’ The remark created an unnecessary…

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U.S. GDP at -5% in first quarter

U.S. GDP

The U.S. economy slowed more than expected with the GDP reading for the first quarter coming in at -5%. Analysts have suggested that the second quarter GDP could be down by as much as 40% 1 in 4 Americans have lost their jobs Data yesterday, 28th May 2020, showed U.S. job losses increased again with nearly 41 million workers now unemployed. If it is possible for there to be a faint glimmer of hope at this time – the data does suggest that the trend is slowing. The weekly count…

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Stocks continue surge despite economic concerns

Stock Market

Tensions between the U.S. and China flared up further again today. China reportedly rejected a U.S. proposal for the Security Council to meet over the issue, whilst U.S. secretary of state Mike Pompeo declared that Hong Kong is no longer autonomous from Beijing. This morning China is also reported to have approved the controversial security legislation for HK. Tensions are showing signs they could bubble up even more and potentially boil over – I worry about an embattled U.S. president in this election year facing a national crisis at home and what he may…

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Global stocks continue to ride hope of pandemic recovery

Virus vs the Markets

Too fast too soon? Blind hope or sensible policy? Governments around the world attempt re-opening, but is it too early? Will we be hit with a second wave of the coronavirus? Hope is that the worst of the pandemic is behind us now. How can we know? What does the science say? According to the WHO, we should be very cautious and prepare for a second wave as infections are expected to spike. But for the moment, markets appear very happy with recovery hopes and of the recent vaccine news.…

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