MARKET REPORT 21/05/2018 by IMBI (Bitcoin back over $8,500)
Please note that due to market volatility, some of the scenarios may have already been played out and the information below is not an investment advice.
US-China trade war “on hold” Representatives from China and the US reached an agreement on Saturday, which US Treasury Secretary Steven Mnuchin said puts the trade war “on hold.” Fears of a trade war were felt in US markets on Friday, as both the SPX500 and Nasdaq closed lower, while the Dow Jones closed flat. Asian markets had a positive reaction to the news this morning, as the China50, Nikkei and Hang Seng indices registered gains.
Crypto markets recover from weekend slump: After falling below the $8,000 mark for the first time in over a month on Friday, Bitcoin recovered and was trading above $8,500 at the time of writing. Other cryptocurrencies were also on the rise, as all top 10 cryptos registered gains over the past 24 hours.
Oil back to gains: After closing lower on Friday, the black gold registered gains this morning, boosted by gains in Asia.
Precious metals on the decline: After being lifted by trade war concerns, safe haven assets gold and silver were trading lower this morning. In contrast, copper was showing gains, as China is the world’s largest importer of the precious metal.
Lower liquidity expected in currency market: Banks in many countries in Europe and in Canada will be closed today in observance of national holidays. Therefore, lower liquidity and volatility could be experienced for the Euro, Swiss Franc and Canadian Dollar.
Europe opens higher: The FTSE opened 51 points higher and the CAC was up by 22 points. Markets in Germany are closed today.
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