Market View https://mktplace.org/category/market-view/ all about trading, Fintech, Business, AI & technology in one place Thu, 26 Dec 2024 00:49:12 +0000 en-US hourly 1 https://wordpress.org/?v=6.7.2 https://mktplace.org/wp-content/uploads/2021/03/favicon.png Market View https://mktplace.org/category/market-view/ 32 32 Tangible Assets: 5 Reasons to Invest in Gold https://mktplace.org/tangible-assets-5-reasons-to-invest-in-gold/ Fri, 14 Jan 2022 14:03:06 +0000 https://mktplace.org/?p=47439

Are you looking for investments that you can hold rather than leaving them in a bank? Have you heard about investing in gold coins but aren’t sure how to get started? Why investing in gold?

The rate of inflation in the US rose to over 6.5 percent last year. This means that the value of the dollars in your savings account is lower than they were a year ago.

If you want to buy some tangible assets that will rise in value, you might want to invest in gold. Here are some great reasons to get started now.

  1. Gold Protects You From Inflation

Inflation is a drop in the purchasing power of your dollar, otherwise known as fiat currency. When prices increase but wages don’t, the value of your dollar goes down. During periods of inflation, gold has held its value over the long term, especially when compared to fiat currencies.

Gold is a long-term investment, and many investors hold it as a hedge against inflation. When you own a gold investment during an inflationary time, your savings are safer.

  1. Invest in Gold Coins

In times of political unrest, it’s essential to have tangible assets that you can carry with you. Gold coins have been a valuable investment for many centuries. They’re portable, hold their value, and are easily traded.

Check out this Rare Metal Blogs recommendation for information on what gold coins are good to buy. When you take the time to do some research, it’s easier to choose gold as an investment.

  1. Increased Privacy

If you keep your investments in your home, you achieve a level of privacy. When you hold assets in a bank or an investment broker, your information can be accessible by the government. It’s also subject to a security hack.

If you invest in physical gold, you’ll need a secure place to store it. Many investors have a safe in their homes to hold these investments. Some brokers offer safe storage options. Your choice will depend on how quickly you want to access your gold.

  1. Diversification

When you hold all of your investments in one type of asset, you are risking your savings. Diversification is an investment principle where you spread your investments over different types of assets.

You could hold a portion of your investments in gold, some in stocks, and another amount in real estate. That way, if one sector drops, you are more likely to retain some value in the other assets.

  1. High Liquidity

Gold is easy to buy and sell as a valuable tangible asset.

It has an agreed-upon value called a spot price. A spot price is a universally recognized value that you can check on at any time. It’s the fair market value of gold.

Many lenders will accept it as collateral if you need to borrow money. You can liquidate gold more rapidly than other tangible assets such as real estate or equipment if you need cash quickly.

Start Buying Gold Today

Now that you know why investing in gold, you can make your investment with confidence. Holding tangible assets gives you more flexibility and autonomy.

Did you find this article helpful? If so, be sure to use the simple search feature for more investment ideas.

]]> Fortnite and Yahoo stop operating in China https://mktplace.org/fortnite-and-yahoo-stop-operating-in-china/ Fri, 19 Nov 2021 16:41:55 +0000 https://mktplace.org/?p=47071

geralt / Pixabay

 

After LinkedIn declared the termination of its operations in China less than a month ago, two more major IT companies have followed suit. Epic Games acknowledged the end of the Fortnite game in China last week, nearly simultaneously with Yahoo’s announcement of its exit from the country.

In both cases, the judgments were prompted by the Chinese government’s recent stringent measures aimed at tightening control over the economy. The new restrictions have had a significant impact on the IT industry.
In the case of video games, titles must go through a lengthy vetting procedure before being released, and they are frequently subjected to censorship.

Furthermore, local governments have begun to limit the amount of time that children under the age of 18 spend playing online (3 hours a week).

Fortnite’s exit from China, according to Epic Games, will finish on November 15, when the country’s servers will be shut down. However, new player registrations are no longer accepted on the platform.

Yahoo is on the same track.

Yahoo’s operations in China came to an end on Monday (1), when the popular search engine became unavailable to Chinese Internet users. The platform, which debuted in the nation in 1999, arrived at a period when the internet was not widely used, a circumstance that is very different from now.

After a strong start, the firm began to limit its—-presence in the Chinese market in 2013, when several services, like as free email and news platforms, were no longer available to Chinese customers. The business dissolved its Beijing branch two years later, laying off around 300 people.

Yahoo defended its permanent pullout from China in a statement, noting the country’s “increasingly challenging legal and commercial climate.” The organization also stated that it was still dedicated to a “free and open internet.”

Several additional platforms are unavailable in the Asian country due to Beijing administrative limitations. In addition to Google, social media sites like Facebook, Instagram, and Twitter, as well as YouTube and Wikipedia, are restricted.

 

]]> Asian markets grapple with Evergrande fallout as declare over a China energy crunch grows https://mktplace.org/asian-markets-grapple-with-evergrande-fallout-as-declare-over-a-china-energy-crunch-grows/ https://mktplace.org/asian-markets-grapple-with-evergrande-fallout-as-declare-over-a-china-energy-crunch-grows/#respond Wed, 06 Oct 2021 15:48:18 +0000 https://mktplace.org/?p=46731

Image by TeeFarm from Pixabay

Asian stocks mostly fell on Tuesday as traders remained concerned about China Evergrande Community’s unresolved financial problem and assessed the functional impact of China’s increasing energy constraint.

The largest Asia-Pacific stock index from Morgan Stanley Capital World goes live today. Following a choppy day on Wall Street, Japan fell 0.13 percent on Tuesday.

The benchmark S&P/ASX200 index in Australia fell over 1% in early trade Tuesday, while the Nikkei in Japan fell 0.6 percent.

On the start, China’s blue chip index CSI300 gained 0.1 percent, while Hong Kong’s Hold Seng Index gained 0.44 percent.

The type ahead for Evergrande, the sector’s most indebted property developer, is being forensically scrutinized by retailers after the company remaining Friday did now not meet a closing date to beget an curiosity fee to offshore bondholders.

Evergrande has 30 days to beget the fee prior to it falls into default and Shenzen authorities are actually investigating the company’s wealth administration unit.

With out making reference to Evergrande, the Individuals’s Monetary establishment of China (PBOC) acknowledged Monday in a commentary posted to its net predicament that it might presumably perchance “safeguard the respectable rights of housing customers.”

Widening vitality shortages in China, throughout the interim, halted manufacturing at a sequence of factories together with suppliers to Apple and Tesla, and are anticipated to hit the nation’s manufacturing sector and related present chains.

Analysts cautioned the persevering with blackouts may perchance perchance affect the nation’s listed industrial shares.

“What we gaze in China with the builders and the blackouts goes to be a unfavorable weight on the Asian markets,” Tai Hui, JPMorgan Asset Administration’s Asian chief market strategist informed Reuters.

 

]]> https://mktplace.org/asian-markets-grapple-with-evergrande-fallout-as-declare-over-a-china-energy-crunch-grows/feed/ 0 European shares hit 2-month lows on inflation worries https://mktplace.org/european-shares-hit-2-month-lows-on-inflation-worries/ https://mktplace.org/european-shares-hit-2-month-lows-on-inflation-worries/#respond Sat, 02 Oct 2021 16:26:38 +0000 https://mktplace.org/?p=46356

Image by M. H. from Pixabay

European shares slumped to their lowest in two months on Friday, as warnings from corporations and manufacturing facility say recordsdata highlighted the economic headwinds from present-chain constraints and elevated costs.

The Europe-wide index fell 0.4% in a extinct originate to October, which has historically been a tricky month for equities, with know-how, miners and banks main large declines. The STOXX 600 ended the week with declines of two.2%.

On-line electricals retailer AO World Plc tumbled 24.3%, saying a shortage of transport drivers in Britain and completely different disruptions within the realm current chain hit revenue improvement within the first half of of the yr.

Throughout the meantime, a inquire of confirmed euro zone manufacturing improvement remained stable in September nonetheless say took a mammoth hit from current chain bottlenecks which may presumably presumably be inclined to persist and protect inflationary pressures extreme.

“Just because it seems the ECB will protect its protection for the foreseeable future, would not imply that elevated inflation must be omitted,” talked about David Madden, market analyst at Equiti Capital.

Underwhelming figures from Asian factories and in a single day losses on Wall Highway dented the realm mood as shoppers awaited a file that’s anticipated to degree to euro zone inflation surged to a 13-year extreme.

With govt bond yields surging to multi-month highs and considerations about inflation coming to the fore, the benchmark STOXX 600 closed September 3.4% lower in its worst month-to-month exhibiting in virtually a yr.

“For equities, this combination of slowing improvement – albeit at a extreme stage of search recordsdata from – rising inflation and elevated bond yields has meant slightly bit elevated volatility, lower market returns and a rotation beneath the ground,” Goldman Sachs (NYSE:) strategist Sharon Bell talked about in a hint.

“It hasn’t helped that earnings revisions possess additionally started to slack from their frenetic dart earlier within the yr.”

BofA International Evaluation lower its outlook for European shares, predicting a decline of in relation to 10% by year-cease given a shift within the macro backdrop in opposition to “anti-goldilocks”, the place slowing improvement is accompanied by elevated low cost prices.

BMW AG rose 1.3% after lifting its annual revenue margin forecast as elevated costs for current and veteran autos outweighed the type of present-chain factors.

French roar-owned utility EDF (PA:) and vitality neighborhood Engie rose 5.9% and a pair of.5%, respectively, with merchants pointing to discount that electrical energy tariffs had been untouched by the supervisor in its opinion to own a have a look at further mark rises.

France’s most practical telecoms neighborhood Orange fell 0.8% after it talked about it’ll steal insurer Groupama’s 21.7% stake in Orange Financial institution, its on-line banking unit.

]]> https://mktplace.org/european-shares-hit-2-month-lows-on-inflation-worries/feed/ 0 Is Bitcoin in a downtrend? https://mktplace.org/is-bitcoin-in-a-downtrend/ Thu, 24 Jun 2021 13:57:56 +0000 https://mktplace.org/?p=46204

Image by mohamed Hassan from Pixabay

In a month marked by high volatility due to increased uncertainties regarding its mining in China, bitcoin experienced on Tuesday, 22, a drop of almost 10%, trading below $ 29,000, a level not seen since January. And this makes many investors wonder if Bitcoin in a downtrend. Even with a quick recovery during the day, the cryptocurrency became one of the main subjects among economists and crypto-active experts, who, despite the fall, highlight the long-term value of bitcoin.

The drop in the price of bitcoin in recent months is a response to a number of factors in the current market moment, with emphasis on the Chinese government’s contrary stance on cryptocurrency mining and, to comments from big names in the financial market. The hunt for bitcoin miners in China and statements by Michael Burry, the investor who inspired the movie The Big Bet, about excessive leverage in the crypto market are negatively impacting prices.

These factors, such as bans in China and pessimistic comments a possible market crash, are nothing new for cryptoactive investors, who should keep their focus on the long term.

If the price had not risen so sharply since the end of last year, there would be less concern about this fall.
From a more technical perspective, Ki Young Ju, CEO of data analysis firm CryptoQuant, has shown that the market’s current momentum is indeed uncertain and, because of this, deserves increased attention until its direction becomes clearer.

“The market is very uncertain at the moment. We are in a neutral range now. Stop the trades, be patient and wait for the next volatility,” CryptoQuant’s CEO posted on Twitter. Despite this, Ki Young Ju commented that its duration should not be long, pointing out that “the market is still positive in terms of supply and demand in the long term.” So we see it’s too early to say  Bitcoin in a downtrend.

According to experts, a drop of this magnitude is not likely to happen again, mainly because of the entry of large investors into the market, who may see the current moment as a buying opportunity for the long term.

Every bank is working on its own crypto-active related project and how to offer bitcoin to its wealthy customers.
Glimpsing the opportunity to increase their position in bitcoin by paying less for the cryptoactive, several companies have made large bitcoin purchases during the downturn, such as MicroStrategy. Headed by Michael Saylor, the company focused on enterprise software development, announced on Monday, 21, the purchase of an additional 13,005 bitcoins for $489 million, which brought the company to over 100,000 bitcoins in its possession.

]]> Joe Biden Considers Exempting US Refineries from Biofuels Target https://mktplace.org/joe-biden-considers-exempting-us-refineries-from-biofuels-target/ Fri, 18 Jun 2021 15:57:25 +0000 https://mktplace.org/?p=46192

Joe Biden Considers Exempting US Refineries from Biofuels Target. The issue confronts two important supporters of the current administration: refinery executives and farmers who depend on biofuels mandates to sustain a huge market for corn.

The impasse could cause a turnaround in the government, which had been reversing the expansion of exemptions to the Standard for Renewable Fuels (RFS) program, created by the previous president, Donald Trump.

In principle, the law requires refineries to mix billions of liters of ethanol and other renewable options into their fuel each year or to buy credits from those who do.

The credits, known as Renewables Identification Numbers (RINs), are currently at their highest price in the program’s 13-year history. Consequently, refiners argue that the RFS threatens to bankrupt fuel manufacturers already hit by the drop in demand seen during the pandemic.

The value of renewable fuel credits fell 15% on Friday morning after the news broke. They traded at $1.70 each, down from $2.00 on Thursday, traders said. Later, the papers were sold at US$ 1.85.

Democratic senators Chris Coons and Tom Carper of Delaware — Biden state — have had at least two meetings in recent weeks with US Environmental Protection Agency (EPA) head Michael Regan to discuss measures to help the refiners, according to the three sources.

Coons and Carper were trying to help the only refinery in the state, a plant with a production capacity of about 28,600 liters a day. These requests were added to a chorus of appeals from other states that own refineries, including Pennsylvania, Texas and Louisiana. It means means Joe Biden considers exempting US refineries from biofuels target

At the meetings, according to two of the sources consulted, Regan and the senators discussed options such as: a general national exemption from some obligations; reducing the number of renewable fuel plants in the future; the creation of a price cap for credits; and issuing a declaration of emergency.

EPA spokesman Nick Conger confirmed that Regan had met with senators but did not comment on the discussions or confirm whether the agency is looking for ways to provide relief to refiners.

Coons did not respond to requests for comment. A Carper spokesman said the senator spoke with Regan several times about the high costs of RINs. It help us to understand that Joe Biden considers exempting US refineries from biofuels target

Refineries like PBF Energy, which operates the plant in Delaware, said biofuel laws could close factories and wipe out thousands of unionized jobs.

The company recently closed most of its refinery in New Jersey after the latest in a series of shutdowns along the east coast of the United States.

The region, which faces higher refining costs because of its distance from oil fields, has seen fuel production capacity drop by about 40% since 2000.

Federal data show that only eight of the 17 refineries operating on the US East Coast in 2000 are still operating.

In addition, at least one company is already betting that the government will end up helping the refineries. Reuters previously reported that Delta Air Lines Inc stopped purchasing RINs, leaving its refinery in Pennsylvania with a liability of $346 million at the end of the first quarter of 2021. So this situation show us Joe Biden considers exempting US refineries from biofuels target

]]> El Salvador is the first country to adopt bitcoin as its official currency https://mktplace.org/el-salvador-is-the-first-country-to-adopt-bitcoin-as-its-official-currency/ Thu, 10 Jun 2021 10:21:03 +0000 https://mktplace.org/?p=46183

The Congress of El Salvador approved, early this Wednesday, the 9th of the law that classifies bitcoin as a legal tender in the country. The decision makes El Salvador is the first country to adopt bitcoin as its official currency.

Salvadoran President Nayib Bukele announced the plan last weekend and is expected to enact the law this Wednesday morning. The idea, according to him, is to increase the dynamism of the economy and make the country more attractive to investors.

“The ‘Bitcoin Law’ was recently passed by the Legislative Assembly with a qualified majority. 62 out of 84 people voted! It’s all in the past! “, the president exulted. “This is a legislation that will place El Salvador on the map, and we’ll be more appealing to global business,” said Congressman Romeo Auerbach, a Bukele supporter.

Anabel Belloso, from the opposition, who voted against the project, lamented that the law “has not been discussed with specialists, nor with patience”: “The law has many implications in the economic sphere and not everyone knows how this will work, leading to considering that cryptocurrencies are volatile in the market, they are unstable,” he said.

With the new law, bitcoin must be accepted as a form of payment by “any economic agent” in the country, excluding those who “It is a well-known truth that they do not have access to the tools that allow them to conduct bitcoin transactions.” Part of country’s population is excited for El Salvador is the first country to adopt bitcoin as its official currency .

For accounting purposes, the US dollar, the official currency of El Salvador, will be used as a reference, but the text states that the bitcoin exchange rate “will be freely established by the market” and that the State will provide alternatives for “automatic and instantaneous conversion between the bitcoin and the dollar” for those who prefer it that way.

According to Bukele, giving bitcoin the status of legal tender in the country aims to generate jobs and increase “financial inclusion for thousands of people outside the formal economy” – according to the president, 70% of the population of El Salvador is currently unbanked.

In addition, the Salvadoran president also said that bitcoin could make it easier for Salvadorans living abroad to send money to friends and family in the country.

Currently, El Salvador’s economy is heavily dependent on remittances sent from other parts of the world, which represent more than 20% of GDP. Data show that more than two million Salvadorans living abroad send around 5 billion dollars  each year to their home country, that is the first country to adopt bitcoin as its official currency.

Providers of this type of service charge high fees and operations take days to be carried out. With bitcoin, the cost and timeframe for these transactions would be reduced considerably: “This will improve the lives and futures of millions,” predicts Bukele.

]]> Top 10 Trading Tips When Bitcoin Price Is Rising https://mktplace.org/top-10-trading-tips-as-bitcoin-price-continues-to-rise/ Fri, 04 Jun 2021 07:04:31 +0000 https://mktplace.org/?p=46151

Image by Bastian Riccardi from Pixabay

When Bitcoin price is rising, gaining over 40 per cent in value in just over three weeks our cryptocurrency expert Bob Loukas, has provided a key trading tips. As the founder of Bitcoin.Live, the educational cryptocurrency platform for traders, Bob believes that this might be the end crypto distrust, and invites traders to utilize this spike and give trading a go.

1. Trade the Trend

“The trend is your friend” may be the most widely used truism in investing…and it’s directly applicable to the study of Cycles. With Cycles, we attempt to identify significant Lows that mark the start of new trends. If you always trade with the trend and never trade against it, you’ll significantly increase your odds of trading success. The most important of all trading tips.

Trading a trend with Cycles is fairly straightforward in concept – if a longer-term Cycle is moving up, buy the troughs of a shorter Cycle; if a longer-term Cycle is moving down; sell the tops of a shorter Cycle.

2.  Work for Optimal Trade Entries

Optimal trade entries are those that occur when the underlying asset is finding its Investor Cycle Low.  These lows occur 2-3 times per year, generally after frightening drops, and most often in concert with major, trend-changing events. Trade entries at these lows typically have strong risk/reward profiles.

3.  Stop Losses

Another trading tip: each position must have a stop loss. Know when to cut your losses and never be afraid of missing a rally. If the position is going against you, get out and regroup. Leaving a trade with a small loss is easy but allowing a small loss to balloon into a large one is inexcusable and sets the scene for a catastrophic loss in a portfolio. Too many investors stubbornly hold onto losing positions rather than admit that price did not move as they thought it would.

4.  Protect Capital First…Then Worry about Winning Trades

A natural extension of #3, protecting capital is the single most important step in wealth management.  All the winning trades and associated gains are worthless if you give them all back through a few lousy portfolio-busting trades.

Avoiding losses is about letting go of the idea that each trade must be a winner. Once you understand that you won’t, can’t and don’t need to win every trade – and that missing a rally is just fine – you’ll be able to exit trades without regret while losses are still small. And if you ensure that your losses are small, you can be successful with only modest winning trades.

5.  Position Sizing

Keep your positions in check relative to your overall portfolio size.  Learn to fully understand each trade, especially its setup and probability of success. Since no two trades are alike, you should adjust your position size according to the risk/reward profile of each trade. Also, be sure to track your trading results – when you’re doing well you can be more aggressive and when results have been mixed, you should trade more modestly.

6.  Leverage and Options

Unless you’re a true expert, avoid significant leverage.  The only times you should consider leverage or options are at the beginning of new Secular or Investor Cycles. This is because the odds of success are the greatest at these key Cycle Lows. Plus, a nearby Cycle low offers a tight stop.

7.  Investing with a Plan

Trading without a plan is a proven losing strategy.  Whether you follow the Market Cycles via The Financial Tap or some other system, you must always have a plan in place which includes trade size, conditions for entering a trade, and reasons for exiting a trade.  Think through them all in advance so that, no matter the market conditions, you’ll know how to respond. Also make sure to ask yourself some key questions: “Why am I buying/selling here? Does this fit my plan/strategy? Am I likely to question the trade (for non-plan compliance) in the future?”

Trades go against investors all the time, even when the trades were entered via a well-defined strategy and according to a preset plan. Losing trades are normal – they are the price of trading. Losses provide you with the opportunity to tweak your strategy and improve your plan.

8.  Treat Investing Like a Business

One of the most important trading tips is that. In order to be successful, one must approach trading and investing as a business and not as a hobby. Investing should be one of the most important aspects of your life, right after spirituality, family, relationships, and personal healthcare.  You’ve likely spent years working to earn your wealth; you need to treat your wealth with the respect it deserves.

Understand what you’re investing in, why you’re investing, and what your expectations should be.  Never solely rely on an online service, advisor, index fund, or wealth manager.  Take control of your personal financial future, get educated, and understand where every dollar of your wealth is invested.

9. Don’t Force a Trade – Wait For an Optimal Trade Setup

Even the most experienced investors have to fight the urge to trade unnecessarily.  For a variety of reasons, investors generally overtrade…and thereby greatly diminish their overall returns. That’s why this trading tip is so important.

It’s better to wait for an optimal trade setup – one that fits your trading plan; These trades have much greater probability of success than trades taken impulsively. Over time, taking higher probability trades will provide a much higher winning percentage and far greater portfolio returns.

10.  Trade within Your Means

Trading is as much about avoiding significant losses as it is making gains. Significant losses are difficult to overcome and can directly affect your quality of life.  There are NO shortcuts to financial success and the freedom it affords. Success in the markets must be earned.  Only trade with money that you can comfortably lose. Never trade with borrowed money (credit cards/line of equity/margin), have patience, and be realistic with your expectations. Hope you have enjoyed those trading tips.

 

]]> Chinese Investors Find in Hong Kong their Crypto-Trading Gateway https://mktplace.org/chinese-investors-find-in-hong-kong-their-crypto-trading-gateway/ Wed, 02 Jun 2021 17:52:27 +0000 https://mktplace.org/?p=46143

Image by WorldSpectrum from Pixabay

Despite China’s ban on digital asset investment, a news report that crypto trading remains active across the country. Chinese investors have found access to cryptocurrency products through its neighbour Hong Kong and off-shore exchanges, according to specialized site 8btc.com.

Mainland investors, those whom the ban policy affected the most, have relied on their trading enterprises through and “have been able to circumvent a ban on crypto trading through the utilization of VPNs and stable coins such as Tether (USDT), to trade cryptocurrencies on global exchanges,” said Joseph Young reporting a Hong Kong-based publication South China Morning Post released on September 8.

Another source, this time from Shanghai-based cryptocurrency startup InVault CEO Kenneth Xu, confirmed what was published by the SCM and has settled that chinese investors from inland remain active while relying on offshore exchanges and operators, most of them based in Hong Kong, to purchase cryptocurrencies like bitcoin and Ethereum.

In fact, in Hong Kong, it is relatively simple for businesses and individuals to create shell companies to obtain bank accounts that are completely independent of cryptocurrency exchanges. “Hence, even if the government had pivoted its crackdown on overseas savings accounts to crypto trading, it would have to evaluate the trail of funds from Chinese bank accounts to Hong Kong shell accounts to local exchanges,” pointed out Joseph Young.

Chinese government has been very strict on what can be traded or not within their frontiers and have passed through some severe regulations to stop the growing crypto-trading. In July, the People’s Bank of China (PBoC) appeared buoyant about its ban policy reducing China’s cryptocurrency trading to less than one percent of global volume.

After that, the government started to chase and close exchanges operating within Chinese territories, they even went after those who were settled off-shore. In an interview with SCMP, Hong Kong and Taiwan-based digital asset exchange executive Terence Tsang said that the tightening of regulations by the government was targeted at exchanges that pretended to be based outside of China but were actually operating inside the country, which is very important for chinese investors.

“The latest warning and potentially increased monitoring of foreign platforms is targeted at a batch of smaller exchanges that had claimed to be foreign entities, but are in fact operating in China claiming they have outsourced their operations to a Chinese company,” Tsang said.

To eliminate the possibility of exchanges operating in mainland, the government requested Alipay, the largest fintech network in the world valued at more than $60 billion, to suspend or block accounts suspected to be connected to cryptocurrency exchanges. After that, on August 23, the government reported to have blocked 124 offshore exchanges

The move came the same week as Beijing forbade venues including hotels, shopping malls, and offices from promoting or hosting events supporting cryptocurrency. A separate ban governing eight crypto media outlets has also come into effect, Bitcoinist reported.

According to Shanghai Securities News, central authorities “will also continue to monitor and shut down domestic websites related to cryptocurrency trades and initial coin offerings (ICOs), and ban payment services from accepting cryptocurrencies, including bitcoin.”

Still, the government is struggling to completely ban out trading in offshore markets, especially in Hong Kong. In theory, local financial authorities could engage with commercial banks and evaluate every suspicious wire transfer made from China to neighbouring countries.

The government has made it as uncomfortable and uneasy as possible for  investors to allocate their holdings in yuan and other assets into cryptocurrencies. But, it has proven to be difficult to outright ban cryptocurrency trading.

]]> In April, the UK’s inflation rate more than doubled https://mktplace.org/in-april-the-uks-inflation-rate-more-than-doubled/ Mon, 24 May 2021 10:52:12 +0000 https://mktplace.org/?p=46118

We have seen inflation rising in the UK in the past few months. The expectation is that the UK’s inflation will continue.

Market prices are growing at their highest pace since March 2020, when the pandemic began, when they jumped to 1.5 percent from 0.7 percent in March.

According to the Office for National Statistics, the dramatic rise was largely due to a surge in prices from low levels at the onset of the pandemic a year ago.

Higher oil prices have forced up gasoline prices, according to the study.

When oil prices rise, you should expect the price of gas to rise as well. Over time, a $10 raise in oil prices leads to a $0.25 increase in petrol prices.  Three forces influence gas and underlying oil prices: supply and demand, commodity brokers, and the valuation of the dollar.

The ONS reports that UK’s inflation increased after lockout controls were lifted and stores reopened on April 12th. Clothing and footwear costs increased in March, after an unexpected drop in February.

Meanwhile, gas and energy rates have risen sharply after a raise in the default tariff ceiling, relative to a cut a year ago.
As lockdown controls relaxed and the economy reopened, PwC economist Hannah Audino predicted that inflation would increase further, enabling customers to “unleash some of their excess savings.”

“New survey data shows that, as the vaccine rollout raises optimism, the share of households planning to invest some of their savings has risen in recent months,” she said.

Economists have expected an increase in UK’s inflation in April, but there are fears that high inflation this year as the global economy recovers from the pandemic would force central banks to lift interest rates.

As the pandemic is affecting most economic sectors, we must wait for the global health situation to stabilize to see how inflation rates will be affected.

]]> China’s stocks rise on energy and transportation gains https://mktplace.org/chinas-stocks-rise-on-energy-and-transportation-gains/ Thu, 20 May 2021 09:22:54 +0000 https://mktplace.org/?p=46104

China’s stocks rise and closed higher on Tuesday, led by gains in energy and transportation companies, although Chinese-American tensions have limited further gains.

The CSI300 index, which includes the largest companies listed in Shanghai and Shenzhen, had a positive change of 0.05%, while the Shanghai index increased by 0.32%.

The energy sub-index and the transportation sub-index closed up 2.0% and 2.8%, respectively.

The United States Senate voted 86-11 on Monday to open debate on a measure that would allocate more than $ 110 billion for basic and advanced technology research over five years in the face of increasing competitive pressure from China economy.

In TOKYO, the Nikkei index advanced 2.09% to 28,406 points.
In HONG KONG, the HANG SENG index rose 1.42% to 28,593 points.
In SHANGHAI, the SSEC index gained 0.32% to 3,529 points.
The CSI300 index, which includes the largest companies listed in SHANGHAI and SHENZHEN, increased 0.05%, to 5,187 points.
In Seoul, the KOSPI index appreciated by 1.23%, to 3,173 points.
In TAIWAN, the TAIEX index increased by 5.16%, to 16,145 points.
In SINGAPORE, the STRAITS TIMES index appreciated 2.04%, to 3,142 points.
In SYDNEY, the S&P/ASX 200 index advanced 0.60%, to 7,066 points.

As the Chinese retail sector recovers from COVID-19-induced market caution, China said it will begin a series of promotional events in May, including a new consumer goods expo in southern Hainan province.

The scenario may still be changing during the week and affect the Asian economy which may have an effect on China’s stocks rise

]]> Head of Sanlam UK: ‘It is not truly a currency but Bitcoin is a commodity’ https://mktplace.org/head-sanlam-uk-bitcoin-not-truly-currency-commodity/ Tue, 11 May 2021 10:12:51 +0000 https://mktplace.org/?p=46096

Mark Ward, head of trading at Sanlam UK, said: “What a Bitcoin (and its rivals) is, can be thought of just as virtual money, used to buy and sell items, as you would in a shop with a five pound note – they are simply a means of exchange – it allows barter to occur online, in a virtually fraud-proof way. Whereas a central bank stands behind and stabilises traditional currencies (in the past one could exchange notes for gold should you ask the Bank of England, and UK bank notes still contain a “promise to pay the bearer” from the UK government itself), there is no bank, corporation or government acting as a backbone to Bitcoin. This is why the value of cryptocurrencies are so volatile – its value derives from the confidence in the market that tomorrow, the Bitcoin will not be worthless, and it help us to understand why Bitcoin is a commodity.

“Bitcoin is not truly a currency, at least not yet, and is best thought of perhaps as a commodity. The Dutch Tulip Mania in the 1600’s saw the price of a special type of tulip bulb rise to more than the cost of a house with an acre of land in the Netherlands, yet the intrinsic value and usefulness remained essentially nothing. But, as with cryptocurrencies, if people decide something has value, then it has value, and only time will tell if Bitcoin is another tulip-mania in the digital world, or will deliver on its promise to displace central banks and hard cash as the primary means of exchange in the future.

“One question that we often get asked at Sanlam is – “I don’t know how to mine Bitcoin, I don’t actually want to use it as currency, but I want exposure to it”. The easiest way to gain exposure to Bitcoin would be via an Exchange Traded Fund (ETF). That said we do not recommend Bitcoin as part of an investment strategy, as it has many characteristics of a bubble and something that we view as purely speculative.

“As for the future of crypto-currency, it largely comes down to three factors: whether or not Central Banks and governments release their own versions and make them the only legal tender, on indeed officially endorse a crypto-currency like Bitcoin, whether or not transaction processing speeds up from the current average of four days, and if the price volatility can be stabilised.

“Whether Bitcoin falls to near-zero like the aforementioned tulip, continues to rise like diamonds have over the past century, or simply holds steady once the market finds the level it can tolerate, is anyone’s guess at the moment, but it is certainly one to watch as it becomes better understood by the mainstream.” That opinion show us that Bitcoin is a commodity

]]> Europe is committed to the sustainability of sheep and goats meat https://mktplace.org/europe-is-committed-to-the-sustainability-of-sheep-and-goats-meat/ https://mktplace.org/europe-is-committed-to-the-sustainability-of-sheep-and-goats-meat/#respond Thu, 25 Mar 2021 13:15:15 +0000 https://mktplace.org/?p=45707

The Interprofessional Organisation for sheep and goats meat, Interovic, has secured seven million euros for the promotion of lamb and kid meat in the internal market. This is the third consecutive program granted by the Executive Agency for Consumers, Health and food of the European Commission (Chafea) to the Interprofessional.

It is a continuation of the multi-country program that Interovic is currently developing in Spain and Hungary and whose objective is to promote the sustainable nature of the sector.

The first campaign, carried out from 2015 to 2017, focused on modernizing the way these foods are marketed through new cuts. The second, from 2018 to 2020, promoted the sustainable nature of sheep and goat production. The latter plans to keep focusing on a related message, but this time with the addition of the hospitality industry.

Raúl Muñiz, the president of Interovic, has indicated that “having these resources provides an opportunity for the sector as it allows us to multiply by four the funds raised through the Extension of the Standard and that just renew now”, adding that thanks to the contribution of all the sector have managed to position itself as “the flesh sustainable” and will continue to convey this message to the whole of society.

“We are proud to know that Europe is betting on us again. This project is one of the selected of a total of 49 that were presented in the 2020 call, Interovic bet on promoting the sustainability of the sector and the granting of this campaign gives us the necessary support from the European Commission to be able to transfer this to the whole of society”, said Tomás Rodríguez, director of Interovic.

The campaign to the sustainability of sheep and goats meat will run from 2021 to 2023 with a budget of 6.975.000 euros. Approximately 2.7 million euros will be invested each year (two million in Spain and the rest in Hungary).

]]> https://mktplace.org/europe-is-committed-to-the-sustainability-of-sheep-and-goats-meat/feed/ 0 Wall Street Close: Mixed end to the week as growth outperforms value https://mktplace.org/wall-street-close-mixed-end-to-the-week-as-growth-outperforms-value/ https://mktplace.org/wall-street-close-mixed-end-to-the-week-as-growth-outperforms-value/#comments Mon, 22 Mar 2021 09:59:54 +0000 https://mktplace.org/?p=45562

The S&P 500 index was steady on the final day of the week, recovering from an early session sell-off that saw the index momentarily falling below 3900 but slipping back from session highs in the 3920s to finish the session around 3910. Sale pressure in “value” stocks in the manufacturing, commodity, and real estate sectors contributed to the S&P 500’s late decline, described by Wall Street.
The Dow fell 0.7 percent as a result of underperformance in these markets, as well as in the financial sector after the Federal Reserve reported that it will not be expanding pandemic-era supplementary leverage ratio (SLR) rules past the end of the month (meaning banks would have to retain reserve capital for their US treasury reserves from March 31), the Dow underperformed.
The Fed’s announcement caused a brief rise in US government bond yields, and some market analysts noted that higher yields are likely to benefit US bank stocks in the future. Meanwhile, Bank of America issued a market-calming statement, stating that the expiration of SLR relief would not affect its dividend plans. However, some analysts pointed out that the Fed could now impose restrictions on bank stock buybacks, citing concerns that they could stifle Treasury market activity, putting financials at risk.
Amid a more subdued US bond yield setting, the Nasdaq 100 outperformed, as tech and “growth” stocks breathed a sigh of relief. The tech-heavy index gained around 0.6 percent in the session, but has yet to recover the 13K mark. The Russell 2000 index rose 0.9 percent, while the VIX fell 0.63 points to under 21.00 as considered by Wall Street.
There wasn’t anything more in the way of other drivers. While the US State Department recently stated that the two sides were having substantive conversations, trade negotiations between the US and China seem to be going poorly, with both sides hurling public insults at each other. Meanwhile, the news out of Europe is largely gloomy, as EU officials increasingly realize that the bloc is in the grip of a third Covid-19 surge, and countries re-enter lockdown.

]]> https://mktplace.org/wall-street-close-mixed-end-to-the-week-as-growth-outperforms-value/feed/ 1 Swiss Franc Black Swan and the Hedging Volatility of the Global Economy https://mktplace.org/swiss-franc-black-swan-hedging-volatility-global-economy/ https://mktplace.org/swiss-franc-black-swan-hedging-volatility-global-economy/#respond Fri, 16 Jan 2015 15:59:40 +0000 http://www.tradersdna.com/?p=32856

A black swan event is a term coined by Nassim Nicholas Taleb and it works as a metaphor that describes an event that comes as a surprise and has major consequences. These kind of events are rare and  its occurrence deviates beyond what is normally expected of a situation and can create substantial damage and chaos. Black Swans without any doubt are extremely difficult to predict, even in a time of sophisticated trading real time, risk management and predictive capital market algorithms.

The Black Swan term sums up what is happening in the hedging volatility of markets after the currency move by the Swiss National Bank and it displays something holistic we perceive at this moment in the world’s fragile and sensitive economy.

This disruptive and influential theory was developed and highlighted by Nassim Nicholas Taleb, a finance professor and former Wall Street trader, in the book with the same name of 2011. This influential concept was drafted, introduced it before in Taleb other 2001 book Fooled By Randomness, which concerned financial events and the power of random events and things that changes the normal trajectory of things.

The pillars of the Black Swan concept can be summarised in these 3 points in Taleb’s words:

  1. “The disproportionate role of high-profile, hard-to-predict, and rare events that are beyond the realm of normal expectations in history, science, finance, and technology.
  2. The non-computability of the probability of the consequential rare events using scientific methods (owing to the very nature of small probabilities).
  3. The psychological biases that make people individually and collectively blind to uncertainty and unaware of the massive role of the rare event in historical affairs.”

Unlike the earlier concepts and philosophical “black swan problem“, the Taleb “black swan theory” refers specially to unexpected events of large magnitude and consequence and their dominant role in history. This theory has become special relevant in the capital markets and trading world where the theory became a Bible for traders and part of the implicit DNA of trading.

Aerial Photo of Davos – the host Alpine City of the World Economic Forum Annual Meetings

Such special and unexpected events, that happen very fast in hawkard circumstance, considered extreme points of no return, or outliers, collectively play vastly larger roles than expected regular occurrences and shift actions and special the players. More technically, in another paper, Taleb describes in the scientific monograph Lectures on Probability and Risk in the Real World: Fat Tails, a more sophisticated mathematically explanation that highlights and translated the black swan problem as “stemming from the use of degenerate metaprobability”.

So yesterday move of the global markets after the Swiss National Bank’s sysmic shock move to stop intervening in its foreign exchange market, has been one of the biggest Black Swans of the last years for traders. Special only after three days the Swiss National Bank, Vice President Jean-Pierre Danthine had defined the Swiss Franc cap a “pillar” of monetary policy.

In these circumstances people and special traders, markets, brokers and investors don’t behave normally special when central banks don’t. This has created a butterfly effect in the global markets with riddle effects still difficult to predict.

This move all comes in the follow up of the European Central Bank big introduction of quantitative easing when it meets Jan. 22 2015. Switzerland is making its home work and somehow surrendering before a critical and polmic wave of post-QE money fleeing the euro that threatens to make a mockery of its currency policy. It’s also in the follow up of the lower oil prices that brings global deflation ever closer.

This move has been affecting the world markets, disrupting even big retail trading players of the industry such as FXCM with its Shares Trading down 85% in Pre-Market Trading and a Massive $225 Million Client Negative Balance Hit Due to CHF Volatility ). IG Group another massive world trading house disclaimed  losses up to £30 Million, Tip of Industry CHF Volatility Losses. And the most radical case Alpari Uk entered in admnistration following up client losses. LCG Group also faced up to $2.5 Million Losses.

To add a more positive note Gain actually generated profit with this black swan Forex Industry black Thursday. Other retail trading players such as Saxo Bank and Mahih FX, CMC Markets, City Index continued with their businesses and trading operations despite the CHF Convulsion. Also IC Markets and Darwinex persisted despite Minimal Losses and Setbacks.

This exceptional market turmoil following up from the Swiss move has created and trickered a series of events and dsiruption and has extended its impact worldwise. Swiss stocks such as Swatch and Nestle fell sharly and in the same path Asian shares dropped with U.S. index futures, while Japanese and Australian government bond yields had record plunges.

This action by the Swiss National Bank taking will put in question the effective strenghts or weakness of the euro polemic currency adventure that started some 15 years ago.

Adding to the chaos coming from Swiss central bank unexpected moves there is the Russian ruble and its weakening economy that continues to lose buying power, and a lot of the big Oligark money that has been flowing into Switzerland from that country. The challenge now is how this will affect more the sensible and fragile Russian economy completely fragilised by the lower and lower prices of cheap oil.

No doubt this move by the Swiss National Bank is a black swan game changer. And its repercussion will probable continue as the ECB continues its path to a massive action that will intensify new actions and potential disruptions. The US economy probably will be the balance in this complex and fragile system.Investors and traders have to be wise at the moment and eventually move their portfolios to solid commodities. This is the case of gold that will be growing its value. Example of that is the move in its the price that keeps its trajectory of 4 month highs. Gold in these occasions is the traditional safe haven out of paper money.

Interesting also that the Swiss Central Bank did this less than some weeks before the global Davos World Economic Forum Annual Meetings – that are host in the Swiss Alpine City.

Be safe and wise if you are trading these days! and beware of the black swans riddle effects in the hedging volatility of the global economy.

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