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 –…

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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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UK inflationary concerns remain as inflation hits 2.5%

Inflation

Inflation at 2.5% The UK inflation rate hit 2.5% in the year to June, the highest for nearly three years, as the ‘re-opening’ of the UK economy continued. The Consumer Prices Index (CPI) measure of inflation rose from 2.1% in May, the Office for National Statistics (ONS) said, driven by higher transport and fuel costs. The rate is higher than the Bank of England’s 2% inflation target. That will fuel the debate about whether interest rates need to go up – or at least when. Sectors most affected Transport, fuel,…

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UK housing supply will continue to keep house prices high according to RICS

Property for sale

House prices set to continue rising as housing supply reduces A lack of available properties is pushing house prices up, according to a surveyors report released Thursday 8th July 2021. As a result, a majority of Royal Institution of Chartered Surveyors (RICS) members believe prices will continue to rise during the next year. The supply shortage suggests the number of new properties coming to market fell by a third in June 2021. All parts of the UK continued to report strong increases in house prices. With demand increasing and supply…

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UK house prices slip as stamp duty deal phased out

Property

Halifax housing data The Halifax data out today, suggested house prices dipped 0.5% in June as the stamp duty holiday began to be phased out. Prices were up 8.8% over the year, leaving average prices still more than £21,000 higher, following a recent period of gains. In the last year the UK housing market was stimulated by a stamp duty tax holiday introduced by the government to boost the property market. This is now being phased out as the economy recovers from the pandemic. From June 2020, buyers didn’t have…

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UK inflation reading higher than expected at 2.1%

Inflation

UK inflation jumped to 2.1% in the year to May As the UK economy opened up – consumer spending increased. The Consumer Prices Index (PCI) measure of inflation climbed from 1.5% in April, according to the Office for National Statistics (ONS), driven by the rising cost of clothes, fuel, food and drink. Inflation vs interest rates Inflation is now at its highest reading since before the pandemic, and this will place the possibility of interest rate hikes back on the agenda. Above Bank of England’s 2% target May’s reading was…

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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…

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U.S. stock markets gain as jobs improve

Stock grind higher

Dow gains 570 points as Nasdaq starts recovery U.S. stocks quickly bounced back from a sharp sell-off on Friday, 5th March 2021as bond yields eased. A better than expected jobs report boosted sentiment too. The Dow Jones Industrial Average climbed 572 points, to 31,496 after losing 150 points in intraday trade. The S&P 500 ended the wild session 2% higher too at 3,842 after falling 1% earlier in the day. The Nasdaq advanced 1.6% to 12,920 after falling by 2.6% on the day. Quite a turn around. Bond yields retreat…

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Gold gains ground as stocks stagnate

Gold

Gold is a clear winner from the pandemic Gold was initially sold off in February and during the early part of March. But since then gold has made substantial progress from the March lows, mostly due to central bank stimulus activity. Gold was around $1775.00 as of Wednesday 24th June. Stocks fall flat After a strong bounce on Tuesday 23rd, European markets opened lower Wednesday 24th June, with the FTSE 100 slipping back under 6,300. The DAX was also weaker and broke down through support at 12,400. The Dow is…

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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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