Bitcoin bounces back to $50,000 – more to come?

Bitcoin

Bitcoin gain Bitcoin hit $50,000 on Sunday, reaching a more than 3-month high, as the cryptocurrency continues to rebound. Bitcoin hit an all time high of over $64,000 in April 2021 – then but sold off in June and July, dipping below $30,000. But since mid July, bitcoin has been regaining lost ground. Other cryptocurrencies were also higher. Ether was trading up at around $3,302 Monday Market news roundup – morning business headlines U.S. stock futures rise and risky assets climb as attention turns to Jackson Hole Fed gathering –…

Read More

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…

Read More

OECD economic recovery looks promising

Economy

Prospects brighter for global economic recovery The OECD (Organisation for Economic Cooperation and Development) said the world economy is likely to expand by 5.6% in 2021. The figure for the UK is 5.1% followed by 4.7% next year. This significantly brighter outlook reflects the deployment of effective vaccines. Stimulus aid There was also an effect from economic stimulus measures in the U.S., in particular the $1.9 trillion package President Biden will introduce. The report does however suggest a risk of lasting costs from the pandemic in some countries, and that…

Read More

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…

Read More

Markets and the ‘real’ economy are out of whack

Invest or guess

Is this a good time to invest in stocks? Probably not. The dislocation between markets and the real economy is, in my opinion, unsustainable. Extremely powerful monetary policies and stimulus measure put in place by central banks and governments to protect the ‘economy’, have given the green light for markets to go crazy! The markets are a-wash with money. But investing now will likely become a mistake. How can you fail? Throwing a dart at a random list of stocks will likely give you a winner in this market! This…

Read More

Markets upward trend continues, for now?

Stocks and Shares

Good news UK and U.S. markets were closed Monday 25th June 2020 – but that didn’t stop European markets roaring ahead yesterday. There are a number of positives for markets to be happy about right now. England is to re-open non-essential shops by mid June. European countries are easing their lockdown measures. Spain is looking to resurrect their holiday season this summer by ending quarantine of arrivals by 1st July. Germany’s Ifo business survey indicated ‘things’ are likely better than thought, and this despite entering recession. The death rate in…

Read More

Jittery market gyrations

Fearful

Market jitters On Monday, 18th May 2020 the markets basked in positive news pushing stocks up. Fed chair, Jerome Powell, said he had more ammunition to help the economy recover from its coronavirus hit. Then came more positive news from a U.S. pharmaceutical company, Moderna Inc., saying that their vaccine phase one trials had gone very well. Markets soared on the news with the Dow gaining over 900 points. Later, U.S. stocks pulled back in the final hours of trading yesterday as a report surfaced apparently casting doubt over the…

Read More

The German economy contracted by 2.2%

Gross Domestic Product

The German economy is reported to have contracted 2.2% in the first quarter 2020, the worst period in 11 years, according to the Federal Statistical Office. The decline was worse than the 2.1% drop expected by economists. GDP from the fourth quarter was revised down to a -0.1% decline from a previous estimate. This data suggest the German economy entered in a technical recession. Other market news U.S. markets closed up Thursday even after job data came in worse than expected. The DOW, for example, climbed form an intra day…

Read More

U.S. – Fed chair Powell sees significant downside risks

Virus damaging economies

Powell says virus poses lasting harm The U.S. economy faces unprecedented downside risks that could do lasting damage if policy makers don’t rise to the challenge, Federal Reserve Chair Jerome Powell is reported to have said. Fed Chairman Jerome Powell said more measures will likely be needed to pull the economy out of its downturn. It was not specified what those measures will be – but pointed to the likely need for more fiscal support. ‘While the economic response has been both timely and appropriately large, it may not be…

Read More

UK GDP takes 2% coronavirus hit

Economic damage

The UK economy shrank by 2%, the worst fall since the financial crisis of 2008. The Office for National Statistics (ONS) said the economy contracted by 2% in the three months to March, following zero growth in the final quarter of 2019. The decline was marked by a record fall in March 2020, and reflects only ‘one‘ full week of lockdown. Analysts expect a bigger economic slump in the current quarter. Is the UK now in recession? The UK is not alone facing such dire GDP data. To soon to…

Read More