July 2, 2022
  • July 2, 2022

Stocks, oil and bitcoin sink in volatile trading

By on May 19, 2021 0

Stock markets, oil prices and bitcoin sank on Wednesday as a string of issues ranging from rising inflation to the crackdown on cryptocurrencies in China spooked investors.

Wall Street had opened significantly lower, joining markets in Europe and Asia who feared central banks would end easy monetary policies to tame inflation.

But US markets rallied somewhat, ending only slightly lower after the Federal Reserve meeting minutes showed the US central bank was approaching a change in monetary policy, but in no rush to do it.

Oil prices have also been under pressure after US data showed inventory spikes and virus-stricken Asia suffered a weak recovery in demand.

Bitcoin, meanwhile, fell 30% after China reported another crackdown on the cryptocurrency and tycoon Elon Musk sent mixed signals about his car company’s use of the unit.

Bitcoin fell to nearly $ 30,000 – less than half of the record high reached last month – before recovering a bit to around $ 39,587.

China said digital currencies cannot be used in markets because they are not real, adding that companies are not allowed to use the units to price their goods or services.

“This is the latest chapter for China to tighten the knot around crypto,” said Antoni Trenchev, managing partner and co-founder of London-based crypto lender Nexo.

Bitcoin later recovered after an ambiguous tweet from Musk with a diamond and open-handed emoji that some observers interpreted to mean Tesla would not sell bitcoin.

Musk had previously expressed concerns about the energy-intensive process of mining Bitcoin.

Meanwhile, London stocks had lost 1.2% by the end of trading, after official data showed UK inflation to peak in April.

Frankfurt plunged 1.8% and Paris lost 1.4%.

US stocks also appeared to be heading for an ugly session, but rallied somewhat. The Dow Jones Industrial Average ended down 0.5% at 33,896.04, more than 400 points above session lows.

Fed minutes showed some officials believe the U.S. economy may soon be healthy enough to curtail asset purchases, one of the first signs of a change in the central bank‘s easy monetary policy. .

“Think about, think about the reduction,” said an Oxford Economics memo that describes the Fed’s deliberate moves towards change. The firm predicted that the Fed would officially change course in August.

But the Fed’s minutes were enough to boost the dollar against other major currencies.

Bitcoin fell around 10% after China’s central bank said it couldn’t be used for transactions Photo: AFP / Ozan KOSE

New York – Dow: Down 0.5% to 33,896.04 (close)

New York – S&P 500: Down 0.3% to 4,115.68 (close)

New York – Nasdaq: Down less than 0.1% to 13,299.74 (close)

London – FTSE 100: DOWN 1.2% to 6,950.20 (close)

Frankfurt – DAX 30: DOWN 1.8% to 15,113.56 (close)

Paris – CAC 40: -4.4% to 6,262.55 (closing)

EURO STOXX 50: Down 1.7% to 3,936.74 (close)

Tokyo – Nikkei 225: Down 1.3% to 28,044.45 (close)

Shanghai – Composite: Down 0.5% to 3,510.96 (close)

Hong Kong – Hang Seng Index: closed for a public holiday

Euro / dollar: DOWN to $ 1.2186 from $ 1.2222 at 9:00 p.m. GMT Tuesday

Pound / dollar: LOW at $ 1.4109 from $ 1.4189

Euro / pound: UP at 86.27 pence from 86.14 pence

Dollar / yen: UP to 109.21 yen against 108.90 yen

North Sea Brent: Down 3.0% to $ 66.66 per Barrel

West Texas Intermediate: Down 3.3% to $ 63.36 per barrel