Thursday saw a favorable trading trend in the stock markets across the globe, with the majority of indices closing in the green zone. In the US, the Nasdaq 100 gained more than 2% at closing, while the Dow Jones (DJI) and S&P showed gains of over 1%. Meanwhile, the European markets experienced a significant bull season, with the CAC index closing with a gain of over 2%.
US Stock Markets stay in Green Zone
Thursday was a positive day for the US equity markets, with tech stocks leading the way. The NASDAQ gained 1.9%, while the Dow Jones Industrial Average (DJI) gained over 1%. Additionally, Ethereum crossed the 2000 mark for the first time this year. The S&P 500 also had a gain of 1.33% in the session.
The producer prices data released on Thursday revealed some easing, providing hope that inflation may be easing off. This news is significant as it could potentially end the hiking trend from the Federal Reserve (FED) sooner than expected, which bodes well for the markets. The easing of inflationary pressures could result in the FED holding off on increasing interest rates, which would be positive news for businesses and the stock market.
Fundamentals have a positive effect on Stock Market
The news of easing inflationary pressures is likely to have a significant impact on the markets. If the FED holds off on hiking interest rates, it could lead to a more favorable business environment, as borrowing costs would remain low. This could also help to fuel economic growth, as businesses would have more access to capital. Overall, the positive trading day on Thursday, coupled with the news of easing inflation, has provided a positive outlook for the markets. However, it’s important to note that the markets are subject to volatility and uncertainty, and any unforeseen events could result in a shift in sentiment. Nonetheless, for the time being, investors can take comfort in the positive market conditions and hope that the trend continues.
Asian Markets Stay Firm
On Friday, Asian shares strengthened as Singapore joined the list of countries pausing its policy tightening. This move has increased market confidence that the next hike in U.S. rates would be the final one in the current cycle. As a result of the dovish signals, non-yielding gold remained near one-year highs, and the euro was the strongest currency as the European Central Bank maintained its hawkish stance.
The MAS Surprise
The Monetary Authority of Singapore (MAS) surprised many by deciding to leave its policy unchanged. The MAS stated that the tightening already underway would be sufficient to slow down inflation significantly later in the year. This move by Singapore, along with other countries pausing their policy tightening, has contributed to the growing market confidence that the next hike in U.S. rates will be the final one in the current cycle.
Bitcoin Rises Again
Bitcoin is rising again at least momentarily, the bulls rule and bears are struggling somewhat. While the Crypto Currency has experienced a steep fall in the last few months the investor’s appetite seems to be building a bit. This can just be a case of value buying or a sign of imminent reversal in fortunes. So far in today’s trade Bitcoin is up by 362.35.
Historical Context
Buyers might see some sign of relief but nothing significant to make them feel over excited just yet, the price increment in Bitcoin at present is not necessarily overpowering unless of course the upward momentum builds up further. Just to put recent movement in some perspective, the Digital currency mounted to an All Time High of $68000 in November 2021 to immediately face extravagant spree of selling; as a consequence it has lost $37229.13 or 54.75% in value and the general trend has been negative since. It is hard to categorize today’s trade statistics as any sign of trend reversal however.
Good News for bulls is that the medium term trend is now positive in my humble opinion, considering it has gained $ in last 31 days. It is being argued that the medium trend is actually very important while analyzing an instrument like Bitcoin. The definition of trend might vary though. A close inspection of Bitcoin’s price would reveal that the currency is still in negative zone in long term view, which isn’t necessarily an optimistic outlook but at these levels it is difficult to see it otherwise. It would require continuous periods of buying to turn this indicator green around as it seems.
Disclaimer: These opinions are being written by a bot which is undergoing massive adjustments, the content is strictly for educational purposes and does not constitute investment advice of any type. Investment in Crypto Currencies carry an inherited risk to capital please do your own due diligence.
