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Bitcoin pops on Square block buy

The price of Bitcoin got a boost from payment company Square buying $50 million in BTC, the Turkish lira dropped and the Dow Jones finished at its highest in a month.

Markets

US indices turned briefly lower when House Speaker Nancy Pelosi rejected the idea of an airlines-specific stimulus package suggested by President Trump. The President back-tracking from his call on Tuesday to end all chances for pre-election stimulus appears to be keeping a floor under prices.

The Russel 2000 was leader again among the US benchmarks in a sign that investors are rotating into companies set to benefit most from stimulus - notably airlines.

European stocks rose on Thursday for a second day, reaching the highest since September 21, a near 3-week high. The energy sector was a rare leader thanks to a 3% gain in the price of oil. The gains in Europe are on shaky ground though, given the big rise in coronavirus cases in hotspots like Paris, where hospitals have been put on an emergency footing.

Bitcoin pops on new Square bought $50M BTC

Payment company Square headed by Twitter founder Jack Dorsey said it bought a large block of 4,709 bitcoins. That adds up to $50 million and is about 1% of Square’s assets. Dorsey is known to believe that Bitcoin will one day become the world’s single currency. It would appear Square believes Bitcoin will feature somehow in its future as a payment company- and is positioning for it now. Cryptocurrency trading is notoriously susceptible to influencers advocating it. This purchase from Square could make sure 10,000 remains a floor to the price.

Turkish lira record low

The lira slumped to a new all-time low on Thursday on the rising chance that Turkey could be put under US sanctions. The latest trigger was the planned test of the Russian S-400 missile defence system bought despite opposition from fellow NATO members. Turkey has also been involved in several regional conflicts - most recently between Armenia and Azerbaijan. At the same time the country faces double digit inflation. The record lows in the currency come even as the CBRT hiked rates by 200 basis points last month. We don’t’ see how with so many political risks and a politicised central bank that the currency can reverse its downtrend.

 

Day Ahead

On Friday, October 9th the day ahead includes:

China Caixin PMI

UK Trade balance, industrial production

Canadian unemployment

JD Wetherspoons quarterly earnings

23-10-2020

Bitcoin above 13k, Barclays Q3 results & flash PMIs
The day ahead will see the reaction to the second and final US presidential debate as well as the release of October PMIs and Q3 earnings from British bank Barclays. European stocks look set for cautiously higher open with the idea that the presidential debate… Read more

22-10-2020

Intel is selling off parts before Q3 results
The day ahead will see two US corporate behemoths Intel and Coca-Cola report Q3 results while the lack of US stimulus puts the spotlight on weekly jobless claims. European stocks look set for opening losses on Thursday with indices testing the lowest levels in… Read more

21-10-2020

No pre-earnings delirium for Tesla
The day ahead will see earnings from EV carmaker and retail options trading favourite Tesla and the UK reports inflation stats at a critical stage in EU/UK trade negotiations. This really feels like it's the last-chance saloon for a pre-election US stimulus bi… Read more

20-10-2020

Netflix earnings and stimulus deadline
MARKETSEuropean markets have opened lower following the late losses headed into the close on Wall Street. Stocks in Asia are mostly lower with the exception of China after the PBOC kept the LPR steady. Early optimism gave way to sweeping losses across stock ma… Read more

19-10-2020

48 hours for stimulus, China GDP grows
HEADLINESChina GDP grew 4.9% in the third quarter, slightly missing estimates Stocks are bouncing back from last week’s sell-off on hopes for US stimulus There could be a coronavirus stimulus bill within 48 hours and an emergency-use COVID-19 vaccine by Novemb… Read more

16-10-2020

Stricter COVID rules send stocks tumbling
MARKETSWall Street ends well off lows in wild tradingThe US equity benchmarks fell for a third day but by much narrower margins than mid-day losses would have implied. The Dow was down by over 300 points but bounced back to close just 20 points lower. Facebook… Read more

15-10-2020

US bank stocks getting clobbered
The British pound rallied (GBP>1.30) after the UK signalled it would not walk away from trade talks after today's EU Summit. Big US banks have seen shares turn lower after earnings results. The prospect of future loan losses and low interest rates are keepi… Read more

14-10-2020

Paused vaccine trials hit market optimism
Eli Lilly has put its antibody treatment for the coronavirus on hold after Johnson & Johnson paused its vaccine trials on Monday. The pauses stretch out the timeline for when investors should expect to see a vaccine approved. MARKETSEurope openEuropean mar… Read more