- Evergrande in a tailspin after deal collapses, weighing on markets
- Dollar rallies despite falling yields
- Bitcoin retains record highs
Key Events
Stocks and US futures on the , , and sold off on Thursday after Chinese real estate developer, Evergrande announced that the sale of a significant stake in its property management group—in order to shore up the company’s teetering financial stability—had , adding to traders’ concerns about markets and rising global inflation.
Treasury yields fell but the dollar advanced.
Global Financial Affairs
All four US contracts were trading in the red this morning, with the Russell most deeply in negative territory.
The Index slipped from its highest levels in six weeks, following an the earlier Asian selloff—which saw the decline 0.5%—on news of the collapse of a $2.6 billion sale of the property management arm of the beleaguered Evergrande Group (HK:). The shares slumped 12.5%, on the announcement while Evergrande Property Services Group (HK:) slid 8%.
Miners, automakers and industrial stocks pulled down the pan-European benchmark—sectors sensitive to the economic recovery—as investors worry about future corporate earnings in an economy battling the highest inflation in years.
Yesterday’s uneven US session saw the inch toward its record high, but the retreated, imbuing markets with a cautious air.
Despite a slide in Treasury yields, the gained.
The USD bounced off the neckline of a massive double bottom. If prices close at the level at which they are now, they will have developed a bullish hammer.
managed to hold on to yesterday’s gains despite the strength of the greenback.
Still, the yellow metal gave up an advance after the 100 DMA crossed below the 200 DMA as it neared the neckline of a H&S continuation pattern.
bulls had a great day on Wednesday as the cryptocurrency’s price finally broke through the $66,000 level.
Today, the digital token managed to hit yesterday’s closing price after a small dip. JPMorgan notes the surge in demand has been fueled by .
Much of the current exuberance has been attributed to the launch, on Tuesday of the ProShares Bitcoin Strategy ETF (NYSE:) which topped $1 billion in assets in just two days.
Presumably, speculators are enjoying the fun ahead of the launch of a second US Bitcoin ETF, the Valkyrie Bitcoin Strategy ETF (BTF) on Friday with others due to follow next week.
The price of the leading crypto formed a Hanging Man. That’s bearish upon a close and a confirming candle, which would occur if the price closes below the real body of today’s candle. Bulls may be exhausted after BTC’s incredible 60% vault since late September.
The cryptocurrency is likely to correct and find support at the top of the broken rising channel before taking on new heights.
is falling from a 7-year high due to a surprise drop in .
Oil Daily
When the price of an asset falls despite supposed bullish news, it’s bearish. The oil price is falling after forming a hanging man yesterday. Preferably, the hanging man would not have had any upper shadow, but if the price today closes below yesterday’s opening level, it might be a bearish signal.
The RSI is turning lower after reaching the most overbought condition since February so the next support will probably be the uptrend line at around $80.
Up Ahead
- German is reported on Friday.
- Canada releases figures for August on Friday.
- On Friday Fed Chair Jerome Powell takes part in a policy panel discussion.
Market Moves
Stocks
- The STOXX 600 fell 0.1% as of 8:49 a.m. London time
- Futures on the S&P 500 fell 0.2%
- Futures on the NASDAQ 100 fell 0.2%
- Futures on the Dow Jones Industrial Average fell 0.2%
- The Index rose 0.4%
- The rose 0.5%
Currencies
- The was little changed at $1.1644
- The rose 0.2% to 114.06 per dollar
- The was little changed at 6.3956 per dollar
- The fell 0.1% to $1.3810
Bonds
- The yield on 10-year Treasuries was little changed at 1.65%
- Germany’s yield was little changed at -0.13%
- Britain’s yield was little changed at 1.15%
Commodities
- fell 0.7% to $85.23 a barrel
- was little changed
