2024-02-23 22:24

Copyrighted Image by: Reuters. Investing.com - The Canadian dollar lost further ground against its US counterpart today, and with the greenback gaining roughly a third of a percent vs. the loonie for the week. Analysts at Scotiabank (TSX:BNS) note that market drivers of loonie weakness this week include a stronger correlation with spreads at a time when spreads are working against the loonie. “Spreads have moved against the CAD in the past week or so, reflecting somewhat lower Canadian yields following the softer than expected Canadian CPI data, and the grind higher in US rates.” Canadian CPI data this week came in cooler than expected, bringing forth bets of a Bank of Canada rate cut as early as April. Meanwhile, hawkish rhetoric and Fed minutes have set expectations for a rate cut from the U.S. Federal Reserve in June. Scotiabank analysts also note that the past week has seen “some softening in the CAD’s linkage with stocks”, with a market rally in equities failing to lend significant support to the loonie. Looking ahead for the Canadian dollar, Wells Fargo (NYSE:WFC) analysts expect the loonie’s muted performance to be “a trend that could continue for the time being”. They note that “Given a broadly similar growth and monetary policy outlook for Canada and the United States, it is also possible that Loonie could be an underwhelming performer over the medium term.” Wells Fargo expects a cumulative 100 bps of rate cuts from the Bank of Canada in 2024, vs. a cumulative 125 bps of rate cuts from the Federal Reserve over the same period. They see the USDCAD trading at 1.3300 by the end of 2024, with the Canadian currency set to see only modest gains. Next week for the pair, all eyes will be on the Canadian December and Q4 GDP. U.S. data meanwhile will include Consumer Confidence, Q4 GDP revisions, and the Jan PCE data. For next week, Scotiabank's week ahead model "suggests spot could trade between 1.3610/1.3390, with 75% confidence”. https://www.investing.com/news/forex-news/canadian-dollar-weakens-vs-usd-as-spreads-bank-of-canada-bets-prove-a-headwind-3313696

2024-02-23 14:14

Copyrighted Image by: Reuters. LAS VEGAS - Ault Alliance, Inc. (NYSE American: AULT), a diversified holding company, has announced strategic plans to enhance operations at its Sentinum, Inc. data centers. The company is set to relocate its Bitcoin mining activities to Montana and dedicate its Michigan facility to artificial intelligence (AI) hyperscale development. Sentinum, a wholly owned subsidiary of Ault Alliance, is preparing to increase the Michigan data center's capacity from 30 megawatts (MWs) to up to 300MWs, contingent on securing necessary funding. This expansion is part of Sentinum's goal to become a prominent player in high-density computing and AI hyperscale operations. The Michigan data center, which occupies 100,000 square feet within a larger 617,000 square foot building, is strategically located near power sources to utilize eco-friendly power. Over the next three to five years, Sentinum aims to substantially boost this facility's capacity, subject to adequate financial backing. Additionally, Sentinum's new Montana facility is expected to be operational by March 2024, initially increasing power capacity by 10MWs. The company has begun an electrical load study with the local utility to explore potential power upgrades, with a view to significantly expanding the Montana sites. Milton "Todd" Ault III, Founder and Executive Chairman of Ault Alliance, expressed optimism about the company's strategic vision and the market's response. He highlighted the critical role of AI in the company's future growth. William B. Horne, CEO of Ault Alliance, reiterated the company's commitment to technology infrastructure expansion, emphasizing the search for financing and strategic partnerships to support the ambitious growth plans. If the company secures the necessary resources, the expansion would enable Sentinum to scale its operations and strengthen its position as a technology sector entity focused on digital transformation and sustainability. This announcement is based on a press release statement from Ault Alliance, Inc. InvestingPro Insights As Ault Alliance, Inc. (NYSE American: AULT) outlines its strategic shift towards expanding AI hyperscale capabilities and relocating Bitcoin mining operations, investors may be evaluating the company's financial health and market position. The latest data from InvestingPro presents a mixed picture for Ault Alliance. With a notably small market capitalization of 1.12M USD, the company is trading at a very low Price / Book multiple of 0.01 as of the last twelve months ending Q3 2023, which could indicate that the stock is undervalued relative to its assets. However, the financial metrics reveal some challenges. The company has been experiencing rapid revenue growth, with a 75.93% increase over the last twelve months as of Q3 2023. Despite this, Ault Alliance operates with a significant debt burden and may have trouble making interest payments on its debt, which is a concern for potential investors. The company's stock has also been highly volatile, with a 1 Month Price Total Return of -35.89% and a 6 Month Price Total Return of -98.95%, reflecting substantial market uncertainty. Investors looking for comprehensive analysis and additional insights can turn to InvestingPro for more in-depth information. For instance, among the several InvestingPro Tips available, it is noted that the Relative Strength Index (RSI) suggests the stock is currently in oversold territory, which might attract those looking for potential buying opportunities. Additionally, the company's net income is expected to grow this year, providing a glimmer of hope amidst the financial concerns. For those interested in exploring these metrics further, there are 19 additional InvestingPro Tips available at https://www.investing.com/pro/AULT, which could aid in making more informed investment decisions. Remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. https://www.investing.com/news/cryptocurrency-news/ault-alliance-targets-major-expansion-of-ai-and-bitcoin-operations-93CH-3313349

2024-02-23 05:40

Copyrighted Image by: Reuters. Investing.com-- Gold prices moved little in Asian trade on Friday and remained well within a recently-established trading range amid increasing conviction that the Federal Reserve will not cut interest rates early in 2024. While the yellow metal was headed for some gains this week, they were largely a recovery from steep losses seen in the last two weeks. Concerns over higher-for-longer interest rates continued to limit any major upside in gold prices, as did relative strength in the dollar and Treasury yields. Spot gold rose 0.1% to $2,025.80 an ounce, while gold futures expiring in April rose 0.2% to $2,035.15 an ounce by 00:15 ET (05:15 GMT). Both instruments were set to add about 0.7% this week after losing as much as 4% in the past two weeks. Bullion prices also remained squarely within the $2,000 to $2,050 an ounce trading range seen for most of 2024 so far. Early rate cut bets wane amid hawkish Fedspeak, labor market strength The outlook for gold remained dull as a slew of signals saw markets further price out early rate cuts by the Fed. Fed Governor Christopher Waller said the bank was in no hurry to cut interest rates early, given that inflation remained sticky. His comments came after several other Fed officials offered similar signals this week, as did the minutes of the Feds’ late-January meeting. Labor data on Thursday showed weekly jobless claims unexpectedly fell, indicating continued resilience in the labor market, which also gives the Fed more impetus to keep rates higher. The CME Fedwatch tool now showed markets almost entirely pricing out the chance of a May rate cut, while chances for a hold in June jumped to 38.6% from 28.7% seen a day prior. Traders also priced down the chance of a June cut to 49.7% from 53.6%, while Goldman Sachs analysts said they no longer expected a cut in May. The prospect of higher for longer rates presents more pressure on gold prices, given that higher rates push up the opportunity cost of buying bullion. Still, the gold performed better than its precious metal peers this week. Platinum futures steadied at $906.50 an ounce, and were down 0.8% this week, while silver futures fell 0.3% to $22.707 an ounce and were down 3.2% this week. Copper steadies, set for weekly gains on China hopes Among industrial metals, copper futures expiring in March fell 0.2% to $3.8855 a pound. But they were up 1.3% this week, their second consecutive week of gains, amid some hopes that top importer China will spruce up a slowing economic recovery. Beijing announced a string of economically supportive measures this week, while official data also showed an increase in spending and travel during the Lunar New Year holiday. https://www.investing.com/news/commodities-news/gold-prices-remain-rangebound-as-early-rate-cut-bets-wane-3312347

2024-02-23 04:09

Copyrighted Image by: Reuters. Investing.com-- Most Asian currencies fell on Friday, while the dollar steadied from recent losses as hawkish signals from the Federal Reserve and strong U.S. labor data cast more doubts over early U.S. rate cuts. The dollar index and dollar index futures both moved little in Asian trade, and were set for mild weekly losses, as they fell from three-month highs earlier in the week. But the outlook for the greenback remained upbeat amid more signals that the Fed will keep rates higher for longer. Hawkish Fed comments, strong labor data further dent early rate cut bets Fed Governor Christopher Waller said on late-Thursday that he needed more evidence that inflation was cooling, before the central bank would consider interest rate cuts. His comments were the latest among a slew of other Fed officials who said that the bank was in no hurry to begin trimming monetary policy. The minutes of the Fed’s late-January meeting had also reiterated this message earlier in the week. Waller’s comments came just hours after data showed jobless claims unexpectedly fell over the past week, signaling continued strength in the labor market, which gives the Fed even less impetus to cut rates early. The prospect of higher for longer U.S. rates bodes poorly for Asian markets, as the gap between risky and low-risk yields narrows. This notion kept most regional currencies trading lower for the week. The CME Fedwatch tool showed traders further paring back expectations for May and June rate cuts by the Fed. Yen above 150, on intervention watch A market holiday in Japan kept regional trading volumes muted on Friday. But the yen remained above the 150 level to the dollar, even as Japanese ministers offered more warnings on potential intervention measures. The outlook for the yen was also somewhat soured by persistent concerns over a slowing Japanese economy, after it unexpectedly entered a recession in the fourth quarter. Levels above 150 yen had drawn record-high intervention by the Japanese government in 2022- a trend that could be repeated again if weakness in the currency persists. Among other Asian units, the Chinese yuan fell slightly amid continued focus on whether Beijing will unlock more stimulus measures to support the economy. The South Korean won shed 0.2%, while the Singapore dollar was flat before key inflation readings due later on Friday. The Australian dollar was among the few gainers for the day, rising 0.2% as it extended a rebound from three-month lows. The Indian rupee was flat but appeared to be moving further away from the 83 level. Sentiment towards India was aided by a strong purchasing managers index reading on the service sector, released on Thursday. https://www.investing.com/news/forex-news/asia-fx-weak-dollar-steady-after-hawkish-fedspeak-strong-labor-data-3312331

2024-02-23 02:05

Copyrighted Image by: Reuters. Investing.com-- Oil prices settled lower Friday, snapping a two-week win streak amid fresh concerns that higher for longer U.S. interest rate regime will stifle global growth and crude demand. By 14:30 ET (19.30 GMT), the U.S. crude futures fell 2.7% to settle $76.49 a barrel and the Brent contract dropped 2.3% to $81.71 a barrel. A string of weak economic readings from across the globe spurred more concerns over slowing demand, especially after data released last week showed the U.K. and Japan both entering recessions in the fourth quarter. Expectations of higher-for-longer U.S. interest rates also weighed on the outlook for crude demand, as several signals from the Federal Reserve showed the bank was in no hurry to begin trimming interest rates. Hawkish Fed signals weigh Federal Reserve Governor Christopher Waller reiterated the chorus of higher for longer interest rates from several Fed officials this week, saying Thursday that central bank should delay its first rate cut by at least a couple more months to see if a recent uptick in inflation signals stalling progress toward price stability. Investors continued to push back their bets on sooner rate cuts, with Goldman Sachs becoming the latest bank to say that they no longer think the U.S. Federal Reserve will move to slash interest rates at its policy meeting in May. The higher for longer interest rate regime is expected to keep a lid on economic growth, potentially weighing on crude demand. Rig counts expand in latest week The number of oil rigs operating in the U.S. rose by 5 to 503, the first decline in ten weeks, from 236 last week, according to data from energy services firm Baker Hughes, marking the first increase in nearly one month, as activity continues to recover following a hit from adverse weather. The uptick in rig count comes as expectations of strong growth from the US shale industry are also waning, ANZ Research said in a Thursday note, though added the "number of horizontal drill rigs operating in shale oil basins is not sufficient to replace dry wells in coming months." Official data on Thursday, meanwhile, showed U.S. oil inventories grew less than expected in the week to Feb. 16, stoking hopes of tightening domestic supplies. Middle East tensions continue despite fresh hope for Gaza ceasfire The conflict in the Middle East showed little signs of stopping as attacks by Houthi rebels continued in the Red Sea, but fresh hope for Gaza ceasefire emerged as Israel Prime Minister Benjamin Netanyahu's war cabinet approved sending negotiators to truce talks taking place in Paris on Friday. The meeting comes as pressure mounts on Hamas and Israel to agree a deal on a ceasefire amid threats by the latter to begin a ground offensive in Rafa in southern city of Gaza. https://www.investing.com/news/commodities-news/oil-prices-edge-lower-set-for-muted-week-as-demand-concerns-weigh-3312288

2024-02-22 13:25

Copyrighted Image by: Investing.com ALPHARETTA, Ga. - Bakkt Holdings, Inc. (NYSE: BKKT), a digital asset marketplace, and Swan Bitcoin, a Bitcoin financial services firm, have announced the expansion of their partnership to enable Bitcoin trading and custody services across 49 states in the U.S. The collaboration aims to provide Swan customers with a range of Bitcoin services, including fiat onboarding, Bitcoin trading, and secure custody options. Gavin Michael, CEO of Bakkt, expressed enthusiasm about the partnership's progress and hinted at potential future endeavors, including possible international market expansions. This move marks a significant milestone for both companies as they seek to increase their footprint in the digital currency space. Bakkt, established in 2018, offers institutional-grade custody and trading services, with a focus on long-term engagement in the crypto economy. Swan Bitcoin is recognized for its user-friendly app that simplifies Bitcoin purchasing and offers a suite of services catering to high-net-worth individuals, businesses, and financial advisors. The announcement indicates a growing collaboration between traditional financial institutions and cryptocurrency service providers, aiming to make Bitcoin more accessible to a wider audience. The strategic partnership between Bakkt and Swan shows a concerted effort to integrate digital assets into mainstream financial services. The information is based on a press release statement from Bakkt Holdings, Inc. InvestingPro Insights In the wake of Bakkt Holdings, Inc.'s (NYSE: BKKT) announcement of their expanded partnership with Swan Bitcoin, investors may be curious about the company's financial health and market performance. According to InvestingPro data, Bakkt has a market capitalization of 250.8 million USD, reflecting the size of the company in the current market. Despite impressive revenue growth over the last twelve months as of Q3 2023, with an increase of 974.24%, the company's financials show signs of strain. The gross profit margin during the same period was -15.6%, indicating challenges in maintaining profitability. InvestingPro Tips suggest that Bakkt is quickly burning through cash and has suffered from weak gross profit margins. This may raise concerns for potential investors considering the company's ability to sustain its operations and growth without incurring further losses. Moreover, the stock has experienced significant price volatility, with a one-month price total return as of the end of January 2024 showing a decline of -39.41%, which aligns with the tip that the stock has taken a big hit over the last month. For investors seeking a deeper dive into Bakkt's financials and performance metrics, InvestingPro offers additional insights. There are 11 more InvestingPro Tips available, which could provide a more comprehensive understanding of the company's market dynamics. Interested readers can access these tips by visiting the InvestingPro site for Bakkt at https://www.investing.com/pro/BKKT. To enhance the value of their subscription, users can apply the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription. https://www.investing.com/news/cryptocurrency-news/bakkt-and-swan-bitcoin-expand-trading-across-most-us-states-93CH-3311453