2023-10-18 01:17

Copyrighted Image by: Reuters. Wall Street and traditional finance institutions have shown a growing interest in cryptocurrencies, leading to a push for Bitcoin Exchange Traded Funds (ETFs) within the $7 trillion ETF industry. These instruments would facilitate direct holding of Bitcoin, an idea that has caught the attention of asset management giants such as BlackRock (NYSE:BLK), Fidelity, and WisdomTree. In response to this interest, these firms have submitted applications for their own Bitcoin ETFs. To address the Securities and Exchange Commission's (SEC) concerns about volatility, value verification, and potential fraud in the crypto market, BlackRock has proposed surveillance-sharing agreements. Coinbase (NASDAQ:COIN), a prominent cryptocurrency exchange platform, has emerged as a preferred partner for these efforts. However, the SEC's stance on spot Bitcoin ETFs, which involve actual buying or selling of Bitcoin, remains uncertain. The regulator has approved futures-backed Bitcoin ETFs like the ProShares Bitcoin Strategy ETF but has denied spot ones. Following the U.S.'s example, Canada introduced its Purpose Bitcoin ETF. Investment trusts are also looking to join the sector. Grayscale successfully transformed into an ETF despite SEC opposition, marking another significant development in this space. https://www.investing.com/news/cryptocurrency-news/bitcoin-etfs-attract-wall-street-despite-regulatory-uncertainty-93CH-3201452

2023-10-18 00:59

Copyrighted Image by: Reuters. Ethereum, the second-largest cryptocurrency by market capitalization, has been grappling with resistance levels for over two months, yet large-scale investors, often referred to as 'whales', are demonstrating unwavering confidence. As of Wednesday, Ethereum's trading price stands at $1,568, having recently rebounded from the support line at $1,533. The digital currency has been unsuccessful in surpassing the 50 and 200-day Exponential Moving Averages (EMAs), a crucial step that could convert the resistance level of $1,686 into a support floor. The Relative Strength Index (RSI), which is currently hovering around the neutral 50.0 mark, indicates a potential rally that could trigger a bullish signal. However, if Ethereum fails to confirm this bullish signal and loses its $1,533 support line, market analysts suggest its price could tumble below $1,500. Despite this looming threat of a price drop, data from blockchain analytics firm Santiment shows that Ethereum whales are poised to prevent such a decline. These large-scale investors, who each hold over 1 million ETH, now control 32.3% of the total circulating supply. This level of concentration is unprecedented since July 2016. https://www.investing.com/news/cryptocurrency-news/ethereum-struggles-with-resistance-levels-as-whales-hold-steadfast-93CH-3201443

2023-10-18 00:58

Copyrighted Image by: Reuters. Investing.com-- Gold prices rose sharply on Wednesday, nearing a one-month high as a potential escalation in the Israel-Hamas war drove up safe haven demand, while copper prices also rose tracking a positive reading on China’s economy. The bombing of a Gaza hospital, which reportedly killed hundreds of Palestinians, marked a potential escalation in the conflict, especially as Egyptian and Palestinian leaders called off a summit with U.S. President Joe Biden following the attack. The move pushed up concerns that the Israel-Hamas conflict could draw in other Arab countries, causing the war to spill over into the broader Middle East region. This notion ramped up investor demand for safe havens, with gold seeing strong inflows after the move. Spot gold rose 0.8% to $1,937.80 an ounce, while gold futures expiring in December jumped 0.8% to $1,950.65 an ounce by 00:39 ET (04:39 GMT). Both instruments were close to a one-month high. Rising concerns over an escalation in the Israel-Hamas war provided a major boost to gold prices over the past week, as demand for conventional safe havens increased. Gold was sitting on a 5% gain in the prior week. But this demand somewhat cooled in recent sessions, especially amid resurgent fears of higher U.S. interest rates. Retail sales data released overnight pushed up fears of sticky inflation, which in turn could attract a more hawkish stance from the Federal Reserve. To that end, focus this week is on a string of U.S. economic indicators and Fed officials, most notably an address by Chair Jerome Powell on Thursday. Any hawkish signals from Powell, considering the recent uptick in inflation, will be in close focus. Rising interest rates bode poorly for gold prices, given that they push up the opportunity cost of investing in the yellow metal. This trend battered gold prices over the past year, and is likely to limit any major gains in the yellow metal, even as safe haven demand increases. Copper surges on China boost as GDP beats expectations Among industrial metals, copper prices rose sharply on Wednesday after top importer China clocked better-than-expected growth in the third quarter. Copper futures rose 0.6% to $3.6128 a pound. China’s third-quarter gross domestic product grew a bigger-than-expected 4.9%, indicating that recent stimulus measures from Beijing were bearing fruit. But quarter-on-quarter growth, while consensus beating, still remained largely below pre-COVID levels, indicating that a bigger economic recovery was still a ways off. Still, the data, coupled with a positive reading on industrial production in September, pushed up hopes that economic conditions in the world’s largest copper importer will improve, buoying demand. Focus is now on a loan prime rate decision from the People’s Bank of China on Friday, although the bank is widely expected to maintain rates. https://www.investing.com/news/commodities-news/gold-prices-rally-to-near-1mth-high-as-middle-east-tensions-worsen-3201438

2023-10-18 00:39

Copyrighted Image by: Reuters. Investing.com - After another uncertain start to a week, oil bulls got a reversal of fortunes again as crude prices jumped 2% Wednesday on government data showing a weekly drop in both US crude and fuel stockpiles. The bombing of a Gaza hospital filled with hundreds of Palestinians also repriced political risk into crude, with analysts citing as many uncertainties about the movement of oil from and around the Middle East versus the fact that the warring parties themselves weren’t major producers or shippers of the commodity. New York-traded West Texas Intermediate, or WTI, crude for delivery in November settled up $1.66, or almost 2%, at $88.32 per barrel. The US crude benchmark dipped 0.9% on Monday and settled Tuesday flat after a near 6% climb last week. London-traded Brent crude for the most-active December contract finished Wednesday’s session at $91.50, up $1.60, or 1.8%. It finished the first two days of this down by a net 1.1%. Last week, the global crude benchmark gained 7.5%. Two wars supporting crude prices, in a season known for weak oil demand The Israel-Hamas war has given a new impetus to the oil trade in the fall, or autumn, season, which is typically known for weak oil demand. The 20-month old Ukraine war also remains supportive to crude market sentiment in a smaller way despite the sanctions on Russian oil. “It is clear that now that we have two wars that are putting oil supplies at risk, which means European and Asian buyers will become more interested with US crude,” said Ed Moya, analyst at online trading platform OANDA. The crude export component was what led to the supportive weekly inventory data released by the US Energy (NASDAQ:USEG) Information Administration, or EIA. Crude stockpiles in the United States fell by 4.5 million barrels last week as exports accelerated from overseas market share gained by US oil firms, while supply cuts by OPEC+ resulted in lesser imports, a government report showed Wednesday. Declines were also recorded in inventories of gasoline, the premier US fuel product, and distillates — a raw material for diesel and heating fuel, the Weekly Petroleum Status Report of the Energy Information Administration, or EIA, showed. Typically at this time of year, demand for fuels is softer in the United States as fewer families do road trips, with children back in school or college. But with the US refining industry on one of its seasonal maintenance periods, larger-than-usual declines in fuel stocks aren’t unusual either with limited replenishments coming in. US crude and fuel stockpiles down across the board The US crude inventory balance fell by 4.491 million barrels during the week ended October 13, according to the EIA. That contrasted with a 10.176 million jump in the prior week to October 6, led largely by a sharp decline in exports. In the latest week though, crude exports regained their mantle to reach 5.301 million barrels versus the prior daily rate of 3.067 million. Imports, meanwhile, fell 387,000 barrels per day, amounting to a weekly total of 2.709 million. OPEC+ is a 23-nation alliance that groups the 13-member Saudi-led Organization of the Petroleum Exporting Countries with 10 independent oil producers that include Russia. Moscow and Riyadh announced previously that they would hold back a joint 1.3 million barrels per day of their regular production till the end of the year, with 300,000 of that coming from Russia and the balance 1.0 million from the Saudis. The OPEC+ cutbacks have allowed US oil exports to make inroads into markets underserved by the Saudi-Russian cuts. “Within this bullish story for oil is a bearish story of less market share growth for the Saudi and Russian crude versus US,” said John Kilduff, partner at New York energy hedge fund Again Capital. Russia’s unwillingness to commit to how much oil it may produce from November onwards is also raising questions on how well the OPEC+ collaboration is working out for Vladimir Putin’s government. Moscow and Riyadh announced previously that they would hold back a joint 1.3 million barrels per day of their regular production till the end of the year, with 300,000 of that coming from Russia and the balance 1.0 million from the Saudis. But supply deficiencies within Russia and the Kremlin’s need to maximize oil revenues — despite a 30% gain in crude prices in the third quarter — could force Moscow to revisit those plans, say those in the know. Russian Deputy Prime Minister Alexander Novak reinforced those suspicions when he told reporters on Tuesday that “it is still too early to talk about (an) OPEC+ decision in November”. To add to the trade’s consternation, Russia’s central bank has also announced that OPEC+, at its next meeting, will discuss a possible oil output increase in early 2024“ in the event that global oil deficit worsens”. Aside from the headline draw for US crude reported by the EIA for the week ended Oct. 13, the agency also noted a 758,000-barrel decline at the Cushing, Oklahoma delivery point for crude committed to exchange-traded futures contracts, on top of the previous week’s draw of 547,000. That was the lowest for Cushing storage levels since October 2014, historical EIA data showed. Oil held in Cushing has dropped sharply this year, prompting concerns that it might reach such critical lows to complicate operations at the storage hub. On the fuel side, the EIA reported a gasoline inventory slide of 2.37 million barrels and distillates stockpile drop of 3.185 barrels. In the prior week, gasoline saw a 1.3134-million barrel build while distillates experienced a 1.837 million drop. (Ambar Warrick contributed to this item) https://www.investing.com/news/commodities-news/oil-prices-rise-brent-above-91-as-israelhamas-tensions-worsen-3201403

2023-10-18 00:14

Copyrighted Image by: Reuters. Investing.com-- Most Asian currencies firmed slightly on Wednesday tracking a stronger-than-expected reading on Chinese economic growth, although fears of an escalation in the Israel-Hamas war limited any major gains. Renewed fears of higher-for-longer U.S. interest rates also remained in play after a stronger-than-expected reading on retail sales for September, which markets feared could factor into stickier inflation. Still, trade-heavy currencies, particularly those exposed to China, saw some gains following a strong reading on third-quarter gross domestic product (GDP). The Australian dollar rose 0.2%, as did the South Korean won and Taiwan dollar. The Japanese yen was flat around 149 to the dollar, with focus remaining on a potential breach of 150, which is expected to attract currency market intervention by the government. The Indian rupee languished above 83 to the dollar, facing renewed pressure from a spike in oil prices. Chinese yuan firms on Q3 GDP beat, but sentiment remains weak The Chinese yuan rose 0.1%, while the offshore yuan added 0.2% after data showed third quarter GDP grew more than expected. Quarter-on-quarter GDP growth also accelerated from prior quarter, indicating that some stimulus measures from Beijing were bearing fruit. But underlying Chinese economic growth- while seeing some improvement, still remained largely below pre-COVID levels, with the third-quarter GDP figures only showing some signs of progress. Optimism over the GDP reading was offset by persistent concerns over a debt default in China’s property sector, especially as beleaguered developer Country Garden (HK:2007) faces a repayment deadline this week. Concerns over a renewed trade war with the U.S. also dampened optimism towards China, after the White House unveiled new curbs on the export of artificial intelligence chips to China. Dollar steadies, rate hike expectations rise before Powell speech The dollar index and dollar index futures weakened slightly in Asian trade, but remained close to 11-month peaks. Data released overnight showed that U.S. retail sales grew more than expected in September, pushing up concerns over sticky inflation, which could keep the Federal Reserve hawkish. This also came before a string of Fed speakers this week, most notably Chair Jerome Powell on Thursday. Markets remained wary of any more hawkish signals from Powell, after he signaled higher-for-longer rates at the Fed’s September meeting. Higher U.S. interest rates had battered Asian currencies over the past year, and are likely to limit any major recovery in the space until the Fed begins cutting rates in earnest. https://www.investing.com/news/forex-news/asia-fx-creeps-higher-on-china-gdp-beat-meast-tensions-weigh-3201433

2023-10-17 23:31

Copyrighted Image by: Reuters. The UK's Office for National Statistics is scheduled to release the Consumer Price Index (CPI) data for September on Wednesday. The data, which is expected to show a decrease in headline and core annual inflation but remain above 6%, could potentially influence the Bank of England’s (BoE) policy direction and the volatility of Pound Sterling. In anticipation of this, the Pound Sterling has been consolidating its recent recovery near 1.22 against the US Dollar (GBP/USD). If the headline and core inflation data surpass expectations, it could revive bets of another BoE rate hike in December and potentially boost the Pound Sterling. The headline annual UK CPI is anticipated to rise by 6.5% in September, down from August’s 6.7%. Core CPI is predicted to rise 6.0% YoY in September, slowing from August’s 6.2%. The UK economy's wage inflation data showed Average Earnings excluding bonuses rose 7.8% 3M YoY in August, aligning with market forecasts and slowing from a revised 7.9% increase in the three months to July. BoE Chief Economist Huw Pill referred to these data as an outlier amidst high wage inflation. BoE Governor Andrew Bailey acknowledged progress on inflation during the Institute of International Finance Annual Membership Meeting earlier this week. However, he emphasized that more work needs to be done and expressed confusion over the continuous strength of pay growth in the UK. https://www.investing.com/news/forex-news/uk-inflation-data-to-impact-boe-policy-and-pound-sterling-volatility-93CH-3201429