Financial Trading Blog
Bitcoin Back over $60K, Inflation Data Looms
Equities
The FTSE 100 index closed 0.8% lower on Wednesday thanks to disappointing earnings updates from the likes of Reckitt, where shares plummeted 13.3%, marking its worst day since December 1999. The company missed its quarterly like-for-like net sales expectations, a situation exacerbated by an investigation that found some employees had under-reported liabilities in the Middle East. Similarly, St. James's Place faced a sharp decline, with its shares falling 18.6% to an 11-year low.
Taylor Wimpey saw its shares decrease by 4.8% after the homebuilder announced it would be constructing fewer homes this year. Aston Martin also saw shares fall by 4%, as the luxury carmaker announced a delay in the launch of its first battery electric vehicle by a year.
Across the Atlantic, the US stock market closed slightly lower with the Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite falling by 0.06%, 0.17%, and 0.55%, respectively.
Beyond Meat's shares surged by 30.72% as the company announced price hikes and cost cuts to improve its margins, leading to a short squeeze on its shares. Major cryptocurrency firms Coinbase Global and Marathon Digital witnessed fluctuations but ended the day higher, amidst a surge in bitcoin prices.
Forex & Commodities
On Wednesday, the US dollar saw an uptick against major currencies like the euro and yen, as investors anticipated the release of inflation data from both the US and Europe. The dollar's strength comes amid expectations for the upcoming US Personal Consumption Expenditures data, which is closely watched for insights into inflation trends and potential Federal Reserve rate cuts. Despite a solid performance in the fourth quarter, the US economy shows tentative signs of slowing down in early 2024.
Bitcoin reached a more than two-year high, capitalising on strong market liquidity and the launch of new US spot bitcoin exchange-traded products. This surge reflects a broader interest in cryptocurrencies as reports of crypto ‘whales’ like Peter Thiel and Microstrategy adding to their positions emerge. Gold remained stable, holding their ground in anticipation of the US inflation report.
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