The U.S. Equity Markets still in fear over US-China Tensions

Daily Analysis - 20/09/2018

U.S. stock indexes show mixed trading


Most of the U.S. stock indexes are mixed across the board. The most popular one, the Dow, lead and change in sentiment to the upside. As for the other popular, NASDAQ Composite, is having a small loss. Most of the major Stocks in the Dow and the S&P 500 Index are has a major jump due to the bank shares that were affected by rising interest rates. The momentum is now on the bullish side in the overall market and investors are increasing their bets on a positive outcome in the trade tension between the two giants, the United States, and China.  Today the benchmark S&P 500 Index is trading 2909.01, up 4.70 or +0.16%. The technology-based NASDAQ Composite is trading 7934.51, up 21.60 or +0.27%.  The Dow Jones Industrial Average is at 26446.94, up 199.98 or +0.76. The Higher rates most of the times increase bank’s profitability. Some of the winners in the banking sector are J.P. Morgan Chase. It’s the best performing stock in the Dow. The S&P 500 Index was fully supported by the Financials sector and is up more than 1.5%. Now Bank of America and Goldman Sachs went up more than 2% and in the meantime, Morgan Stanley gained 1.8 %. Citigroup went up 2.5%. In other stock market news, Tesla shares went down 0.6 % after the company said the Justice Department last month ask for documents regarding CEO Elon Musk’s tweets in early August about taking the company private.

The two major pairs of EU today

The day for the popular currency EUR is quiet, there are no material stats scheduled for today so we can have a direction. A turn in momentum towards trade, supported by upbeat economic drivers and on hopes of trade talks restarting to probably give an end to the trade war before the end of this year.

The probable sentiment towards trade and the possibility of the negative impact on the Eurozone’s economy will continue to be a short term driver, the EU is still on Trump’s trade war list. The technical view of the EUR is that the popular currency was up about 0.10% to $1.1683. For the GBP, economic data are scheduled for later this morning includes August retail sales figures that will probably give us the direction, forecasts have been negative again. We can expect positive numbers to have a short time impact on the Pound, with Brexit news to continue to be in focus.


Bitcoin Are We on for another round?

Bitcoin continued to regain its previous losses from Monday. It went up by 0.97% and gave back Tuesday’s 1.30% gain to end the day at $6,395.7. A range bound formed in the morning and early afternoon that found Bitcoin going directly to the day’s major support and resistance levels, with no clear direction through the first half of the day led bitcoin to a slide through the day’s first major support level at $6,246.70 and second major support level at $6,159.50 to a low at $6,100 before finding support. An immediate retrace back found Bitcoin breaking though the day’s first major resistance level at $6,402.60 and second major resistance level at $6,471.19 to an intraday high $6,549.3 before going  back to $6,400 levels late in the day.


Monero, another hacking scandal

Monero (XMR) will change hands at $111.60, of this week's low reached $103.30. Monero witch is the 10th largest coin by market cap has little changed since yesterday due to the low volatility. Monero's market value is now at $1.8B with daily trading volumes about $37M. It's roughly in balance with the longer-term average amounts. Now Monero is probably the main focus now due to another hacking scandal. According to the latest research of Cyber Threat Alliance, crypto hackers are mining Monero and some other coins by exploiting the vulnerabilities of US government software that was stolen last year. The software in question is the Eternal Blue tool that gives hackers the ability to find the weak spots in outdated Microsoft Systems software and gain computing power of unsuspecting users to mine their digital coins. Last July this year, about 85% of all illegal crypto mining activities were related to Monero.


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