Crypto and tech rebound, Europe braces for a positive week

For those of a superstitious nature, and after the week we’ve seen in the stock markets, perhaps a hint of trepidation was unsurprising as we came to the last trading day of this week on Friday the 13thand.

Europe

It turns out that the price action today was quite orderly, as well as positive to start with broad gains across the board, as we look to cap a week of gains for European markets, closing at highs. of the week, while the FTSE100 lagged.

Today’s gains were broad based, with energy, financials, healthcare and consumer goods all seeing strong demand.

Rising oil prices are helping push BP and Shell higher.

We also saw a bargain hunting element as can be seen on the larger risers for example, Scottish Mortgage Investment Trust is higher after falling to its lowest level in two years yesterday, while Dechra Pharmaceuticals recovered after falling to its lowest level in a year.

Accounting software editor, Wise Group is also higher after reporting first-half revenue of £934m, which was slightly below expectations, but pre-tax profits fell 1% to £189m. The company kept its full-year outlook unchanged, saying it expected to maintain recurring revenue growth of 8% to 9%, driven primarily by cloud business.

WE

US markets take inspiration from today’s rebound in European markets, with a positive weekend, although this should not prevent another weekly decline, which would be the 6and weekly decline in a row.

the Nasdaq 100 leads the gains, helped in part by the strong rebound in bitcoin and other related cryptocurrencies which are all higher, while the S&P500 managed to rally back above 4,000 after falling to 3,859 yesterday .

Twitter Shares fell sharply after Elon Musk said the takeover deal was on hold pending details supporting the calculation that spam or fake accounts account for less than 5% of total accounts. It appears to be fueling concerns that Musk could set the stage to walk away from the deal, although he could take a $1 billion hit if he did.

The timing seems curious given Musk’s efforts to secure funding, after all, why go to such lengths to secure secondary funding only to pull the plug at the last minute?

Of course, if Musk feels the deal isn’t working for him, he’ll have to pay a $1 billion break clause which will probably sting a bit, but he’ll probably view it as a cheap cut, especially since Musk has makes his offer. for Twitter, Tesla shares fell more than 20%. This drop in value potentially reduces its leeway to fund the deal from the value of its Tesla shares.

You’re here stocks, on the other hand, are on the rise, perhaps on the expectation that a deal has become less likely or that the price of the deal may be traded lower.

Robinhood Markets The share is also higher after it was reported that the man who founded cryptocurrency exchange FTX took 7.6% in the company.

The rebound in cryptocurrencies today is also helping companies like Coinbase and MicroStrategy rise today.

Effects

It was another strong week for the US Dollar, despite today’s weakness as it pulls away from another 20-year high, which we saw yesterday. Yesterday’s comments by Fed Chairman Jay Powell that he was not embarrassed to go faster than his initial comments after the meeting on two 50 basis point rate hikes caused some grip profits on the US dollar. Powell was careful not to rule out a 75 basis point move if the data warranted it.

The Japanese yen has outperformed this week, helped by the selling we have seen in US tech stocks, which has sparked an element of risk aversion.

The Australian dollar had a bad week, despite today’s rebound, reflecting concerns about the global growth outlook and potentially weaker demand for commodities.

Merchandise

Crude oil prices have continued to climb, after briefly hitting two-week lows earlier this week, but we remain on track for a weekly decline. Prices appear to be caught in a pincer movement with concern over slowing demand due to the impact of rising prices, as well as China’s covid lockdowns and worries about Russian supply and the loss of that this because of the sanctions.

Gold prices continued to look weak, falling to a three-month low, and down for the fourth week in a row, as the appreciation of the US dollar continues to diminish the attractiveness of the precious metal.

Volatility

Starting with fiat currencies today, where the Czech koruna was the center of attention following the announcement of the appointment of a new central bank governor. Anticipation of this news had weighed on the currency, but the confirmation of the position – although the incoming lead is seen as a political dove – was enough to help reverse at least some of those losses. Dollar Daily Flight – The krone rose 20.58% as a result, from a monthly reading of 13.99%.

The upheaval in crypto continues, keeping price action levels in the sector incredibly high. Perhaps notably, Bitcoin – which has traded within a 25% range against the US dollar this week – has rallied back to that key $30,000 level. There is a lot of dust to settle here and questions will be asked about how badly the credibility of the new asset class has been damaged by the events of this week. Daily theft figures of over 300% are seen across much of the chart, with the most compound bitcoin printing a daily theft of 171% versus a monthly printing of 76%.

Cannabis stocks had a strong run across the board yesterday, reversing some recent declines and with that, CMC Markets’ exclusive basket of medicinal producers found significant support. The index’s daily flight rose to 164% from 117% over the month.

And to wrap up with individual stocks, Electronic Arts remains the center of attention for a second day after the earnings news. Daily theft edged up to 193% from 78% on the month, although those profit-driven gains are waning a bit.

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Mary I. Bruner