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mystlnewsonline · 7 years ago

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New Post has been published on https://www.stl.news/markets-right-now-futures-markets-predict-more-us-selling/81349/

Markets Right Now: Futures markets predict more US selling

NEW YORK/February 6, 2018 (AP)(STL.News) — The latest on developments in financial markets (all times local):

6:55 a.m.

It’s going to be a nervous opening on Wall Street, a day after the Dow Jones industrial average recorded its biggest fall, in percentage terms, since August 2011.

Futures markets are turning cagey as the opening bell gets nearer, with Dow futures and the broader S&P futures, down a further 1 percent and 0.6 percent, respectively.

Stock markets around the world, particularly on Wall Street, have tumbled this week as fears over prospective U.S. interest rate hikes combined with fears that markets were a bit frothy following a strong run over the past year that saw many indexes hit record highs.

Neil Wilson, senior market analyst at ETX Capital in London, is worried about the role technology is playing in the rout. Algorithmic trading, which involves computers following a program, are, he said, “battering the key levels forcing the market lower each time.

As a result, he reckons buyers are being caught out: “So far every time dip buyers come in they are being blown away — despite the fact that on a forward earnings basis stocks are looking more and more appealing.”

___

6:30 a.m.

For many stock investors, the rout in markets is likely to have come as a bit of a shock or at least a timely reminder that share prices can go down as well as up.

Throughout the history of financial markets, corrections whereby indexes lose 10 percent of their value have been a regular and healthy phenomenon as they shake out some of the more speculative players and bring share prices back to their fundamental levels.

Craig Erlam, senior market analyst at OANDA, notes that the rally over the last couple of years has been “very strong and without any corrections of note.”

As a result, he thinks that it’s entirely possible that this has led to some “complacency,” with investors perhaps “getting a little ahead of themselves.”

___

6:15 a.m.

In the Middle East, stocks were touched by the U.S. and Asian markets‘ sell-off, though the losses were more limited.

Dubai’s stock market closed 1.5 percent lower and Abu Dhabi’s shed nearly 1 percent on Tuesday in the region’s third day of trading for the week.

In Saudi Arabia, the region’s biggest economy, the Tadawul stock exchange slipped 1.5 percent while Qatar’s closed a little more than 2 percent down.

Meanwhile, in Egypt, one of the largest consumer markets in the region, the EGX30 was trading 2 percent lower and the EGX50 was down 3 percent.

___

5:45 a.m.

The turmoil in global stock markets has echoes with what’s been going on with bitcoin, the hugely volatile virtual currency, which rose exponentially to around $20,000 last year before a precipitous slump.

Many in the markets think assets like bitcoin are introducing a layer of uncertainty that has contributed to the retreat in stocks.

On Monday, bitcoin slid from around $11,500 to below $7,000, while the Dow Jones industrial average fell by a record 1,175 points.

According to James Hughes, chief market analyst at AXI Trader, the Dow Jones “was trying to do its best Bitcoin impression.”

Bitcoin was under pressure again Tuesday, trading 5.9 percent lower at $6,509.

___

5:05 a.m.

There are signs of a reprieve in the global market sell-off.

Futures markets are pointing to a steady opening on Wall Street, with Dow futures and the broader S&P 500 futures down 0.2 percent and up 0.4 percent, respectively.

Hopes that Tuesday won’t see a repeat of the previous day’s selling on Wall Street has helped European stock markets clamber off earlier lows. The FTSE 100 index of leading British shares was down 1.8 percent, while Germany’s DAX was 1.9 percent lower — both indexes are higher than where they started the session.

Chris Beauchamp, chief market analyst at IG, said it’s the “speed of the correction, not its size,” that has proven the “real shock, particularly to a market inured to low volatility.”

___

3:15 a.m.

Stock markets in Europe have tumbled at the open following the routs on Wall Street and Asia and as investors fret that a healthy correction could turn into a protracted bear market.

Minutes after the bell to signal the start of trading, the FTSE 100 index of leading British shares was down 2.5 percent at 7,151, while the CAC 40 in France slid 3 percent to 5,127. It was a similar story on Germany’s DAX, which was 3 percent lower at 12,308.

Investors around the world have taken fright at the prospect of a higher than anticipated increase in U.S. interest rates this year in the event rising wages stir inflation.

Many in the markets had been anticipating some sort of correction following the steady gains over the past year or so, which have pushed some indexes, notably on Wall Street, to a series of record highs.

___

1:15 a.m.

Shares are taking a beating in Asia after the biggest drop in the Dow Jones industrial average in six and a half years.

Japan’s Nikkei 225 index plunged as much as 7.1 percent but recovered some of those losses to close down 4.7 percent at 21,610.24 on Tuesday.

Hong Kong’s Hang Seng index fell 4.1 percent to 30,938.85 and the Kospi in South Korea lost 1.4 percent to 2,458.06.

Most other regional share benchmarks gave up between 2 percent to 4 percent. The dollar weakened to 108.81 Japanese yen.

___

By Associated Press – published on STL.News by St. Louis Media, LLC (Z.S)

___

#ETX Capital in London #Futures markets #Germany DAX #Predict more US selling #U.S. and Asian markets

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lewisgabriel84z31 · 7 years ago

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Solid Reasons to Buy Bitcoin When the Price Drops

Last week was a field day for those who eagerly waited for the ‘Bitcoin bubble’ to burst. In an overnight, the digital asset plummeted from a record high of $20,000 to nearly $10,000. Several reasons are available for the decline, but is this the right time to buy bitcoin?

A sharp drop in the price of bitcoin often scares novice investors, who rush to sell off their investments for fear of further losses. Some investors also exit the market with the conclusion that the cryptocurrency has proven too risky. However, for seasoned and market-savvy investors, a drop in the price of bitcoin or any other cryptocurrency for that matter is an excellent opportunity to buy more of the asset.

According to analysts, bitcoin’s price is known to be very volatile, which makes it difficult for analysts to predict what’s going to happen next. For instance, just two days ago, the digital currency dropped in value to nearly $10,000. Even so, in less than 24 hours, it recovered from the shock to a high of $15,000.

ETX Capital senior analyst Neil Wilson says, Has the bubble finally popped? It’s hard to see the bell tolling just yet. Large price swings have become so normal that it’s hard to decide—we can easily see this market bounce back in very short order.”

Why Should You Buy Bitcoin When the Price Drops?

For investors who appreciate the long-term value of bitcoin, the drop in price is a chance to acquire more of the cryptocurrency. It enables them to add to their holdings at a less costly price than if they purchased in a bull market.

If you believe in the strength and ability of bitcoin to change your life and the world, then you should cash in on every drop in price as an opportunity to buy bitcoin. Here are three reasons for buying when the price drops:

1. Dollar-cost Averaging

Investors in digital currency use the dollar-cost averaging strategy to buy more digital assets for less when the price falls. Dollar-cost averaging is a market strategy that enables investors and traders to buy a fixed amount of an asset on a weekly or monthly basis regardless of the market price at that particular time. In the end, the investor would be able to buy more of the asset during price drops and less of the same when the price goes up, but with the same amount of money. With the recent price drop, it is one of the best opportunities to buy bitcoin than ever.

2. One-off Investment Opportunity

In addition to the dollar-cost averaging benefit, you can use the price drop as an opportunity to make a big, one-off investment in the digital currency for a possible long-term investment. This option is suitable for investors who do not have much time to spend following the market trends or to actively manage their investments. Once bought, you can store your asset in a digital wallet until you decide to exchange or to invest.

3. Bitcoin Has a Potential for Future Growth

With each drop in bitcoin price, opponents of the digital currency claim a possible end of the ‘bitcoin bubble’ hype. However, as history puts it, bitcoin has recovered from past price blows with a much bigger boom. Even with the price drop, many investors and analysts believe that the world’s most popular cryptocurrency will hit a record high of $50,000 by the end of 2018.

In the words of cryptocurrency investor Oliver Isaacs, “Currently if you invest in bitcoin you can make a significant amount of money, but similar to investing in the stock market it is important to be cautious and avoid putting all your eggs in one basket,” Oliver spoke to Express.co.uk.

Possible Reasons for the Recent Decline

Investors and analysts have provided various explanations for the recent drop in bitcoin price, which dimmed the aspirations of many aspiring and existing investors. All the same, despite the drop that slashed nearly 30 percent of bitcoin’s market value, there are signs of a possible upswing that have left many people wondering what could be the cause of the massive drop in bitcoin price. Here are top 3 possible explanations:

Expense-laden Season

With the December festivities in sight, many investors usually take a break from business and withdraw their annual gains. Investors convert their earnings into cash in readiness for the everyday transactions that cryptocurrency might not favor. Even with the soaring popularity of the blockchain technology and cryptocurrency, the average buyer still prefers cash to the internet money. With only a few days before Christmas, the decline came at a time when investors offload the earnings to the market in exchange for cash.

The Bitcoin Cash (BCH) Confusion

Recently, Coinbase announced its support for the Bitcoin Cash (BCH), a step that has led to internal wrangles within the Bitcoin community. Bitcoin Cash is a hard fork of the original Bitcoin. With two camps of the same cryptocurrency, many people are left wondering which one is the true Bitcoin. There is a heated debate around the issue, followed by the recent surging price of BCH and a sharp decline of BTC price. The confusion around the two crypto currencies could have kept many traders and investors from participation.

Market Exploitation

Recently, Bloomberg revealed that only a group of a thousand investors own up to 40 percent of all circulating Bitcoin. This could have triggered a possibility of a foul play. With nearly half of the circulating Bitcoin under their control, the market giants could simply tilt the market to their favor. It could well be possible to sell their investments at record highs, drop the market to record lows, and then buy back at a lower cost. Whether this is true or not, time will tell.

Final Thoughts

Finally, but on a very important note, if you are a firm believer in the power of Bitcoin and in the price predictions by experts, then you should not be spooked by a price decline. Instead, you should view the situation as an opportunity to buy bitcoin at a cheaper cost and to build your investment portfolio.

Image from Google

Disclosure: The author is a crypto markets writer. Neither the author nor CoinStaker endorses participation in any token sale or cryptocurrency investment, all of which have a significant inherent risk. Seek advice from a financial advisor and do your own due diligence before considering an investment.

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mavwrekmarketing · 7 years ago

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The pound has fallen sharply as traders react to the results of the general election.

The currency markets had been expecting a clear victory for Theresa May’s Conservatives, but the party may not win a majority in the Commons.

Sterling fell as low as $1.27, down about two and a half cents from its level late on Thursday.

It has since recovered to be down 1.5% at $1.2760, but the market is volatile and traders are cautious.

“Given the patchy history of exit polls, this time we will have to wait for the seat by seat results, setting the pound up for a volatile day,” said Sean Callow, senior currency analyst at Westpac.

Sterling fell after an exit poll for the BBC, ITV and Sky released as the polls closed at 22:00 cast doubt on an overall Conservative majority, raising concerns about increased uncertainty and a possible delay to Brexit negotiations.

The BBC projects that the Conservatives will be the largest party with 318 seats, but they require 326 for a majority.

When will we know who’s won?

Seat-by-seat result forecasts

Election results live updates

Election 2017: At a glance

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Find your constituency and candidates

Enter a postcode or seat name

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Neil Wilson, senior market analyst at ETX Capital said the exit poll was a shock for the financial markets.

“It’s fair to say markets had been a little complacent about this result,” he said.

If the election results in a hung parliament the pound could fall as low as $1.25 on Friday, Mr Wilson said.

“Trading is pretty thin overnight and the volumes will increase markedly later this morning when traders in London arrive at their desks, which might produce some more decisive price action,” he added.

Sterling has been trading in a range between $1.28 and $1.30 in recent weeks.

Against the euro the pound is down 1% at 1.142 euros.

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drubblernews-blog · 8 years ago

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New Post has been published on http://drubbler.com/2017/02/19/kraft-heinz-drops-unilever-takeover-bid/

Kraft Heinz drops Unilever takeover bid

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Kraft Heinz says it has dropped its plan to buy Anglo-Dutch rival Unilever.

Marmite-maker Unilever rejected the US food giant’s bid on Friday, saying it saw “no merit, either financial or strategic” in Kraft’s offer, worth about $143bn (£115bn).

“Unilever and Kraft Heinz hold each other in high regard,” the companies said in a joint statement.

The deal would have been one of the biggest in corporate history, combining dozens of household names.

Unilever owns Ben & Jerry’s ice cream, Dove soap, and Hellmann’s mayonnaise, while Kraft’s range includes Philadelphia cheese and Heinz baked beans.

“It would appear that Kraft Heinz have underestimated both the intrinsic value of Unilever and the challenge of acquiring control of a Dutch company whose stakeholders would have opposed such a move vociferously,” said Martin Deboo, a consumer goods analyst at Jefferies International.

More than half of the company’s shares are in the Dutch-listed entity, he told the BBC.

‘Friendly basis’

Michael Mullen, a spokesman for the company, said by email: “Kraft Heinz’s interest was made public at an extremely early stage.

“Our intention was to proceed on a friendly basis, but it was made clear Unilever did not wish to pursue a transaction. It is best to step away early so both companies can focus on their own independent plans to generate value.”

UK Prime Minister Theresa May had asked officials to examine the deal before it was scrapped, the Financial Times has reported.

The takeover of Cadbury by Kraft in 2010 was controversial enough to prompt a revamp of the rules governing how foreign firms buy UK companies.

Just a week after promising to keep open Cadbury’s Somerdale factory, near Bristol, Kraft backtracked and said it would close the plant.

The Panel of Takeovers and Mergers reviewed the laws and in September 2011 and strengthened the hand of target companies, and demanded more information from bidders about their intentions after the purchase, particularly on areas such as job cuts.

In July last year, shortly after becoming prime minister, Mrs May promised to have a “proper industrial strategy” that could be used to block takeovers.

Analysis

By Joe Lynam, BBC business correspondent

Kraft Heinz is jointly controlled by billionaire investor Warren Buffett and Brazilian private equity group 3G. The latter has a deserved reputation for taking a scythe to costs – irrespective of how that might impact jobs and factories.

Unilever, on the other hand, has a reputation for doing the right thing in terms of corporate social responsibility and the environment – even if that eats into the bottom line.

I understand that Kraft Heinz was shocked with the vehemence with which its “friendly” merger offer was rebuffed.

The bosses of both consumer giants spoke over the weekend and it was clear that if Kraft really wanted Unilever it would have to launch a hostile takeover bid that could have ended up being very expensive.

The higher the price, the less worthwhile the deal. So the bid was withdrawn within 55 hours of it being announced.

Shares in both companies rose sharply on Friday, as investors welcomed the news. A merger often aims to combine sales while cutting costs, flattering profits.

The combined group might have had more power to raise prices through a bigger share of the branded food market.

Unilever clashed with UK supermarket Tesco in October over its attempts to raise prices to compensate for the steep drop in the value of the pound.

The consumer goods giant has over a dozen sites across the UK, including three major plants in Liverpool, Norwich and Gloucester.

If the deal had proceeded, it would be the second biggest ever, behind Vodafone’s $183bn takeover of Germany’s Mannesmann in 2000, according to Dealogic.

Kraft’s offer was at an 18% premium to Unilever’s closing share price on Thursday, Unilever said. Unilever shares, however, rose just shy of that, by 13%. Kraft shares rose 11% on Wall Street.

“Unilever shares might be rough going tomorrow,” said Neil Wilson, senior market analyst at ETX Capital. The chance of other bidders emerging may be slim because of Unilever’s size, he added.

“For the government there must be a lot riding on defending British jobs and that’s going to make the hurdle for future foreign acquisitions all the higher, even if the pound’s weakness makes some companies appealing,” he added.

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