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After China launched its second broadside transaction for Bitcoin within three days, cryptocurrency prices plunged again on Friday.
The new news has reduced the value of Bitcoin by 12%, Ethereum by 20%, and Dogecoin by 18%. It also seems to have flowed to the US stock market. The high-tech Nasdaq market is the last one to trade. Within hours, it fell to a close close to the day’s low.
Chinese Vice Premier Liu He reiterated Beijing’s determination to curb cryptocurrency mining and trading in a statement on Friday, triggering the latest decline.
Cryptocurrency exchange Coinbase showed that the price of Bitcoin was slightly higher than $34,000 in the United States late Friday afternoon, still higher than the low of about $30,000 set on Wednesday, after the People’s Bank of China warned financial institutions not to accept Cryptocurrency As payment or provide related services and products.
The Nasdaq Composite index fell 0.5% on the day, although the index still rose 0.3% in the past week.
The Standard & Poor’s 500 index closed down 0.1%, also close to the day’s low, falling 0.4% over the week. The result is that the index has lost consecutive back-to-back losses for the first time since February.
The Federal Reserve released the minutes of its latest policy meeting on Wednesday, which showed that some of its interest rate makers believe that the US Central Bank should start discussing a “plan to adjust the pace of asset purchases” at some point.
Prior to the release of the meeting minutes, global stock markets had been turbulent, but settled as analysts and investors reacted to the stock market. signal The U.S. central bank is not in a hurry to reduce its $120 billion monthly bond purchases, which have boosted financial markets since March last year.
Jim O’Sullivan, chief US macro strategist at TD Securities, said: “We still suspect that officials are preparing to send signals that may be seen as a gradual countdown in June or July,” and may need to announce a reduction in positions. Before the end of the year”.
A survey conducted on Friday showed that investors observed signs of changes in economic output that the business conditions in the United States are booming.
IHS Markit Purchasing Manager Index In the United States, the highest reading in May was 68.1, based on answers from executives in the manufacturing and service industries on topics such as recruitment plans and new businesses.
The growth of the index 50 is separated from the contraction of the index. As the previously closed economic sectors reopened, IHS’s so-called “fastest service industry growth in history” promoted the so-called rapid growth in May.
While carefully investigating whether there are signs of economic recovery in the PMI survey, they also provide insight into future inflation levels that may erode the actual returns of stocks and bonds.
IHS said: “Inflation rates for input prices have soared to new survey record highs.” Although Fed policymakers still largely view inflationary pressures as a temporary effect of post-pandemic demand, the past month In the past, the long-term gains in global stock markets have been suspended because investors questioned whether the Fed will be too slow to respond to price increases. .
Mobeen Tahir, head of research at WisdomTree, said: “Although economic activity is steadily improving, as data improves, the stock market will be internalized because there are fewer and fewer reasons to gain support in monetary policy.”
On Friday, the spot gold price was quoted at $1,880 per ounce, the highest level since January.
The yield on the U.S. 10-year U.S. Treasury bond was flat at 1.623%. Germany’s equivalent Bund bond yield also stabilized at minus 0.126%.
The euro fell 0.3% against the dollar to $1.2185 as the dollar rebounded after the PMI survey. The U.S. dollar index, which measures the exchange rate of the U.S. dollar against the currencies of trading partners, rose 0.2% by the end of the New York trading day.
The global oil benchmark Brent crude oil also rose 2.4% to $66.68 per barrel.
Europe’s Stoxx 600 index rose 0.6%, led by energy stocks, rose late.
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