The tumultuous trading day comes to a close with Bitcoin, Wall Street up, and Asia down.


The tumultuous trading day comes to a close with Bitcoin, Wall Street up, and Asia down.

On Monday, financial markets began the week on a tumultuous note, with bitcoin surging and Wall Street hitting all-time highs, while Asian stocks plummeted.

Big profit reports overcame fears that the Delta variety of Covid-19 might stall the country’s economic recovery, and the three major US indices finished at new highs.

In view of the recovering economy, US corporations have a “good shot at probably 18 months of continuing growth,” according to Kim Caugher Forrest, chief investment officer at Bokeh Capital Partners.

“This is a healthy foundation for growth and a rationale to invest in stocks rather than real estate or bonds.”

Traders’ attention is focused this week on the US Federal Reserve’s policy-setting committee’s two-day meeting, which concludes on Wednesday, as well as earnings releases from tech giants such as Alphabet, Amazon, Apple, and Microsoft.

The Fed’s deliberations are “always significant for the markets,” according to Fawad Razaqzada, an analyst at ThinkMarkets. “Especially as we move closer and closer to the moment when there will be a shift in the central bank’s policy stance,” he added.

After Wall Street closed, Tesla announced its first-ever quarterly profit of more than $1 billion and reaffirmed its production targets for 2021, despite supply chain disruptions.

In Asia, Hong Kong led losses early in the day after China tightened down on its tech giants over the weekend, while European stocks finished neutral.

Meanwhile, traders are keeping an eye on the threats posed by the fast-spreading Delta variety, which has caused an increase in illnesses and led some governments to reintroduce economically costly lockdowns or other containment measures.

Tokyo, on the other hand, closed higher as traders returning from a Japanese public holiday caught up on gains achieved elsewhere last week, when stocks in New York concluded the week at all-time highs.

Meanwhile, education enterprises in China have been pummeled after the government announced regulations that will drastically alter how they do business.

Beijing claims that the sector has been “hijacked by capital,” and that it will prohibit companies that teach school curriculums from making a profit, acquiring capital, or going public.

Analysts at JPMorgan Chase said it was unclear whether companies could continue to be traded on stock exchanges. “This, in our opinion, renders these stocks virtually uninvestable,” it stated.

After Tesla declared new support for the world’s most popular cryptocurrency, Bitcoin briefly surged above $40,000 before settling slightly above $37,000.

“The bulls have returned to town, and it appears that they are returning with a vengeance this time,” said AvaTrade analyst Naeem. Brief News from Washington Newsday.


Leave A Reply