2024-01-23 10:53

Copyrighted Image by: Reuters. Coinbase (COIN) falls 5% as Bitcoin prices slip, JPM downgrades to sell Coinbase Global (NASDAQ:COIN) shares fell 4.6% in early Tuesday trade after Bitcoin, the world’s largest digital asset, slipped more than 4%. Bitcoin hit a seven-week low and again fell below $40,000 despite the initial excitement surrounding the approval of several spot exchange-traded funds (ETFs). Bitcoin price witnessed a robust surge in the past year amid expectations that the Securities and Exchange Commission (SEC) would greenlight ETFs directly tracking its price — a first for U.S. markets. However, the cryptocurrency's performance post-approval has been lackluster, contrary to predictions of a significant price surge fueled by increased institutional capital. Moreover, JPMorgan analysts lowered their rating on the stock to Underweight from Neutral on the risk that the 2023 positive catalyst – Bitcoin ETF approval – could reverse in 2024. “While we continue to see Coinbase as the dominant U.S. exchange in the cryptoecosystem and a leader in cryptocurrency trading and investing globally, we think the catalyst in Bitcoin ETFs that has pushed the ecosystem out of its winter will disappoint market participants,” analysts said in a note. With Bitcoin prices under pressure in recent days, analysts see “greater potential for cryptocurrency ETF enthusiasm to further deflate, driving with it lower token prices, lower trading volume, and lower ancillary revenue opportunities for firms like Coinbase.” Hence, analysts see “the potential for 2024 to be a more challenging year for Coinbase’ stock, despite what we see as continued progress in various meaningful initiatives including its buildout of derivatives and its Layer-2 Base.” JPMorgan analysts also cut the price target to $80 per share, signaling a downside risk of about 35% from current prices. https://www.investing.com/news/cryptocurrency-news/coinbase-falls-5-as-bitcoin-prices-slip-jpm-downgrades-to-sell-432SI-3280406

2024-01-23 09:20

Copyrighted Image by: Reuters. Investing.com - The U.S. dollar slipped lower in early European trade Tuesday, while the Japanese yen appreciated in the wake of the latest Bank of Japan policy meeting. At 04:20 ET (09:20 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.1% lower at 102.997, handing back some of the almost 2% gains it has seen since the start of this year. Dollar drifts lower ahead of key data The greenback has drifted lower Tuesday, but remained close to one-month highs as traders price in a greater chance that the central bank will keep rates steady in March, a marked reversal from earlier expectations for a cut. The Fed is widely expected to keep rates on hold when it meets next week, and ahead of this investors will have some key U.S. economic readings to digest. Fourth-quarter GDP data, on Thursday, is expected to show some cooling in growth, while PCE price index data, the Fed’s preferred inflation gauge, is likely on Friday to reiterate that inflation remained sticky in December. Yen appreciates after Ueda speaks In Asia, USD/JPY fell 0.5% to 147.39, after the Bank of Japan maintained its ultra-low interest rates and stuck to its ultra-dovish policies, as widely expected. The central bank also forecast lower inflation in fiscal 2024, providing less impetus to immediately begin tightening its ultra-loose policy. However, BOJ Governor Kazuo Ueda indicated in his post-decision comments that the time for tightening policy was drawing nearer. “Our core-core inflation forecast is at 1.9%, very close to our 2% target,” he said. This was the case in October but it happened again this time, after close scrutiny. This is the biggest factor that made us more convinced than before that the likelihood (of sustainably achieving our price target) is gradually heightening." USD/CNY traded 0.3% lower to 7.1712, with the yuan helped by recent reports that the People’s Bank of China was selling dollars in open markets to support the Chinese currency. Investors look to Lagarde for guidance In Europe, EUR/USD traded 0.1% higher at 1.0886, ahead of the European Central Bank’s policy-setting meeting on Thursday. The ECB is certain to keep rates steady, and thus investors will focus on the tone of the policy statement and President Christine Lagarde's press conference. “We don’t expect this meeting to be a turning point for eurozone rates or for the euro,” said analysts at ING, in a note. “We are, indeed, in a phase of data dependency. Expect President Lagarde to reiterate it.” GBP/USD traded 0.2% higher at 1.2724, with sterling helped by the release of data showing U.K. public sector borrowing fell to £7.8 billion last month, around half the sum borrowed a year earlier and the lowest figure for a December since 2019. This will be a boost to Chancellor Jeremy Hunt as he prepares to unveil the Budget in March as a general election looms. https://www.investing.com/news/forex-news/dollar-slips-from-strength-yen-gains-after-uedas-comments-3280325

2024-01-23 05:54

Copyrighted Image by: Reuters. Investing.com-- Gold prices advanced on Tuesday, tracking mild weakness in the dollar as traders hunkered down before a slew of key U.S. economic readings this week, although the prospect of higher-for-longer U.S. interest rates still kept gains subdued. Among industrial metals, copper prices rallied 1% on reports that the Chinese government was preparing more measures to support local markets. China is the world’s largest copper importer, and has been a key pain point for copper prices. Traders were now seeking more cues on the U.S. economy, amid waning bets that the Federal Reserve will begin cutting interest rates by as soon as March 2024. This notion had weighed heavily on gold earlier in January, pushing prices of the yellow metal as low as $2,000 an ounce. But gold rebounded from its 2024 lows, as worsening geopolitical conditions in the Middle East spurred safe haven buying. Bullion prices were also supported by bets that the Fed will loosen monetary policy eventually this year. Spot gold rose 0.4% to $2,029.53 an ounce, while gold futures expiring in February rose 0.4% to $2,030.70 an ounce by 00:34 ET (05:34 GMT). US GDP, inflation cues awaited as March rate-cut bets dwindle Focus was now squarely on fourth-quarter U.S. gross domestic product data, due this Thursday, which is expected to show some cooling in overall growth. But any signs of resilience in the U.S. economy are likely to give the Fed more headroom to keep rates higher for longer. The central bank is widely expected to hold rates at 23-year highs when it meets next week. But before that, PCE price index data- the Fed’s preferred inflation gauge- is due this Friday, and is expected to reiterate that inflation remained sticky in December. Signs of sticky U.S. inflation and labor market strength, coupled with hawkish warnings from Fed officials, saw traders largely reverse bets on a March rate cut. Part of this reversal triggered steep losses in gold prices earlier in January. High rates bode poorly for gold, given that they push up the opportunity cost of investing in the yellow metal. This trade limited any major upside in gold prices over the past two years. Copper jumps nearly 1% on China hopes Copper futures expiring in March rose nearly 1% to $3.7823, recovering a bulk of their losses made this year. Gains in copper tracked a broader increase in Chinese financial markets, after Bloomberg reported that Beijing was considering a 2 trillion yuan ($278 billion) support package for mainland stocks. The report ramped up optimism over more support for the Chinese economy, which could keep copper demand in the country strong in the coming months. An economic slowdown in China was a major weight on copper prices over the past two years, as markets grew cautious over potential weakness in the country’s appetite for the red metal. Upgrade your investing with our groundbreaking, AI-powered InvestingPro+ stock picks. Use coupon INVPRO2024 to avail a limited time discount on our Pro and Pro+ subscription plans. Click here to know more, and don't forget to use the discount code when checking out! https://www.investing.com/news/commodities-news/gold-prices-rise-before-more-economic-cues-copper-surges-on-china-hopes-3280229

2024-01-23 05:04

Copyrighted Image by: Reuters. Investing.com-- Most Asian currencies kept to a tight range on Tuesday as markets remained on edge before a string of key U.S. economic readings, while the Japanese yen hovered near seven-week lows after the Bank of Japan remained dovish. The dollar saw some weakness in Asian trade, but remained close to an over one-month high, as traders priced in expectations of higher-for-longer U.S. interest rates. Relative strength in the dollar kept most Asian currencies subdued, as did the prospect of delayed interest rate cuts by the Federal Reserve. The Chinese yuan was among the few outliers for the day, rising 0.3% from a two-month low amid recent reports that the People’s Bank of China was selling dollars in open markets to support the Chinese currency. The yuan also benefited from a substantially stronger-than-expected midpoint fix by the PBOC. But the outlook for the yuan remained dismal amid continued pessimism towards the Chinese economy. Japanese yen flat as BOJ stays dovish, flags softer inflation The yen hovered near its weakest level since early-December on Tuesday, after the BOJ maintained its ultra-low interest rates and stuck to its ultra-dovish policies. The central bank also forecast lower inflation in fiscal 2024- a scenario that gives it less impetus to immediately begin tightening its ultra-loose policy. The bank gave scant cues on when it plans to begin tightening policy. An ultra-dovish BOJ was a key driver of weakness in the yen, as a gulf between local and U.S. interest rates widened further over the past two years. The BOJ is also widely expected to keep rates low for the near-term, heralding little support for the yen. Broader Asian currencies kept to a muted range. The Australian dollar rose 0.4%, recovering further from a seven-week low, while the South Korean won rose 0.3% after hitting a two-month low last week. Data showed a mild pick-up in South Korean producer price inflation through December. The Singapore dollar rose 0.2%, while the Indian rupee steadied above the 83 level, staying close to record lows. Dollar steady as rate-cut bets ease, more econ data awaited The dollar index and dollar index futures both fell slightly in Asian trade. But the greenback remained close to over one-month highs, amid growing conviction that the Fed will begin trimming interest rates only later in 2024. The CME Fedwatch tool showed traders now pricing in a greater chance that the central bank will keep rates steady in March, a marked reversal from earlier expectations for a cut. The Fed is also widely expected to keep rates on hold when it meets next week. But before the Fed, markets have to contend with key U.S. economic readings this week. Fourth-quarter GDP data due on Thursday is expected to show some cooling in growth, while PCE price index data- the Fed’s preferred inflation gauge- is due on Friday, and is likely to reiterate that inflation remained sticky in December. Higher-for-longer U.S. rates bode poorly for Asian currencies, given that they draw capital away from high-risk, high-yield assets. Upgrade your investing with our groundbreaking, AI-powered InvestingPro+ stock picks. Use coupon INVPRO2024 to avail a limited time discount on our Pro and Pro+ subscription plans. Click here to know more, and don't forget to use the discount code when checking out! https://www.investing.com/news/forex-news/asia-fx-muted-before-more-us-cues-yen-flat-as-boj-keeps-dovish-course-3280213

2024-01-23 01:35

Copyrighted Image by: Reuters. Investing.com -- Oil prices settled lower on Tuesday, as rising supply concerns returned to focus after Libya resumed production at a key oilfield, while a stronger dollar also weighed on sentiment offsetting ongoing geopolitical tensions. By 14:30 ET (19.30 GMT), the U.S. crude futures traded 0.5% lower at $74.37 a barrel and the Brent contract dropped 0.6% to $79.55 a barrel. Supply concerns return to focus Production at the Sharara oilfield in Libya restarted at the start of this week after the end of protests that had halted output since early this month. “The restart of the operations came after the local governments agreed to meet most of the demands from protestors,” said analysts at ING, in a note. “Crude oil production at the oil field stood at around 270Mbbls/d earlier.” In the U.S., meanwhile, North Dakota’s pipeline authority estimating that oil production in the region was down around 250,000 to 300,000 barrels a day as of Tuesday. ”The extreme cold weather in the US has also impacted refining operations in the country with around 15% of refining capacity in the Gulf Coast region reported to be offline as of last Friday,” said analysts at ING, in a note. The weather-induced shutdowns over the last week could see a drop in crude inventories in Tuesday's American Petroleum Institute weekly report, due later in the session. Middle East unrest provides support Providing support for the crude markets remains the volatile situation in the Middle East, potentially hitting output from this oil-rich region. The war between Israel and Hamas in Gaza rages on, and the U.S. and British forces carried out a second joint round of strikes on Houthi positions in Yemen on Monday night. The Iran-backed Houthi militants have been threatening shipping in the Red Sea, a crucial artery for shipping between Europe and Asia. Dollar climbs as bets for March Fed rate cut continue to Fade The dollar advanced to keep lid on oil prices as investors rethink bets on a March rate cut following a slew of upbeat economic data so far this month. A stronger dollar makes oil, priced in the U.S. dollars, more expensive in other currencies. That weighs on demand, which is already under pressure as rising Covid-19 infections threaten the global recovery. Only about 40% of traders continue to expect a rate cut in March, compared with about 80% earlier this month, according to Investing.com's Fed Rate Monitor Tool. Still, the rate-cut odds could be in for a further swing as investors look ahead to key economic updates this week including fourth-quarter GDP data due on Thursday, and the PCE price index data, Fed’s preferred inflation gauge, due on Friday. The data will arrive with just a week to go until the Fed's next interest decision on Jan. 31. https://www.investing.com/news/commodities-news/oil-prices-cool-after-strong-gains-on-supply-concerns-econ-data-awaited-3280152

2024-01-23 00:53

Copyrighted Image by: Reuters Investing.com-- Bitcoin fell sharply to an over seven-week low while also breaking below key levels on Tuesday as an initial boost from the approval of several spot exchange-traded fund now appeared to be waning. Bitcoin fell 4.3% to $39,867.0 by 19:54 ET (00:54 GMT). The world’s largest cryptocurrency saw a strong melt-up over the past year amid speculation that the Securities and Exchange Commission (SEC) would approve ETFs that directly track the price of the token- a first for U.S. markets. The token peaked at a near two-year high earlier this month, just as the SEC approved the spot ETFs. But bitcoin’s performance since the approval has been largely underwhelming, defying forecasts that the price would shoot up with the entrance of more institutional capital. All the spot ETFs which were approved and listed earlier this month- including BlackRock's (NYSE:BLK) iShares Bitcoin Trust (NASDAQ:IBIT), ARK 21Shares Bitcoin (NYSE:ARKB) and WisdomTree Bitcoin (NYSE:BTCW), were trading down between 13% and 14% since their debut. The ETFs had marked a strong first day of trading, but have fallen almost consistently so far in their price performance and trading volumes. Bitcoin was pressured by resilience in the dollar, amid growing expectations that the Federal Reserve will keep interest rates higher for longer. Traders were seen sharply cutting bets this week that the Fed will begin trimming rates by as soon as March 2024. Bets on a March rate cut had also driven gains in bitcoin over the past two months. But the token, which offers no yield, usually sees a subdued performance in a high-rate environment. While the SEC’s approval of the spot ETFs offered some regulatory credibility to the industry, SEC Chairman Gary Gensler maintained his stance that crypto assets were “exceptionally risky” investments. The crypto industry is still struggling with a massive loss of faith, following several high-profile bankruptcies and regulatory crackdowns over the past two years. The SEC has ongoing cases against major exchanges Coinbase (NASDAQ:COIN) and Binance, the latter of which was also slapped with billions of dollars in fines in late-2023 over criminal charges raised by the DOJ. Bitcoin’s recent downturn largely contrasted with a sharp rally in traditional financial markets, particularly U.S. equities. The S&P 500 and the Dow Jones closed at record highs on Monday, buoyed chiefly by a melt-up in technology stocks ahead of several major earnings due this week. Upgrade your investing with our groundbreaking, AI-powered InvestingPro+ stock picks. Use coupon INVPRO2024 to avail a limited time discount on our Pro and Pro+ subscription plans. Click here to know more, and don't forget to use the discount code when checking out! https://www.investing.com/news/cryptocurrency-news/bitcoin-breaks-below-40k-as-spot-etf-hype-wanes-3280133