Round up of today's market news *

North American News

US Stock Indices Extend Winning Streak with Second Straight Day of Gains

Gains are led by the Russell 2000 and and the NASDAQ index

Major US stock indices have continued their upward trend for the second consecutive day this week, driven by a combination of factors. The market was buoyed by lower rates, which were influenced by S&P global PMI data falling below expectations. This data eased concerns about a potentially tighter or less accommodative stance from the Federal Reserve. Leading the charge were the NASDAQ index and the interest rate-sensitive small-cap Russell 2000 index, both showing strong gains amidst the positive sentiment in the market.

The final numbers are showing:

Dow Industrial Average up 263.71 points or 0.69% at 38503.70
S&P index of 59.97 points or 1.20% at 5070.56
NASDAQ index up 245.33 points or 1.59% at 15696.64

Tesla earnings: EPS $0.45 vs $0.51 estimate. Revenues $21.3B vs $22.31B estimate

Tesla earnings for period ending March 2024

EPS $0.45 vs $0.51 expected
Revenues $21.3 billion vs $22.31B estimate. Last year $23.329 billion
Gross margins 17.4%
free cash flow -2.531 million
Adjusted EBITDA 3.384 million versus 3.313 million estimate

Guidance for deliveries for the year was expected at 1.89-1.90M.

Updated future vehicle lineup to accelerate launch of the new models ahead of previously communicated start of production in 2H of 2025 . (i.e, the company is hinting at more affordable models).
Regarding new models, they will include more affordable models, will utilize aspects of next-generation platform as well as aspects of our current platforms.
Committed to companywide cost production. They have ample liquidity to afford expansion plans.
Global EV sales continue to be under pressure as many carmakers prioritize hybrids over EVs
Says our vehicle volume growth rate may be notably lower than the growth rate achieved in 2023
Says we experienced numerous challenges in Q1, from the Red Sea conflict and the arson attack at Gigafactory in Berlin
In US we produced over 1000 cybertrucks in a single week in April.
In artificial intelligence software and hardware, will continue to increase our core AI infrastructure capacity in coming months

Despite the miss on the top and bottom line Tesla shares are now up over 7% trading at $155.88, up $11.44 as investors are encouraged by the accelerated pace of new, more affordable models.

Visa reports earnings: EPS 2.51 vs 2.44 estimate. Company sees ‘stable consumer spending’

Visa reports on Q1 2024 earnings

EPS $2.51 vs $2.41 expected
Revenues $8.80 billion vs $8.55 billion expected

Shares are up 3.4%. The jump in revenue is a good sign for overall consumer spending and the metrics point to a healthy global consumer.

Comments from Ryan McInerney, Chief Executive Officer:

“Visa delivered strong results in the second quarter, with net revenue up 10%, GAAP EPS up 12%, and non- GAAP EPS up 20%. Overall payments volume grew 8% [y/y] and cross-border volume grew 16%, driven by stable consumer spending. As we head into the second half of the year and beyond, we remain focused on the trillions of dollars of opportunity in consumer payments and new flows and on continuing to deepen our partnerships with clients around the world by adding value across our network of networks.”

In the earnings presentation, there is some deceleration in Visa transactions into April:

Here is the forward-looking guidance:

Texas Instruments reports earnings of $1.20 versus $1.07 expected

Revenue guidance is light of expectations

Texas Instruments reports earnings:

EPS $1.20 versus $1.07 expected
Revenues of $3.68 billion versus expected $3.61 billion

Guidance revenues $3.65 and $3.95 billion versus $3.78 billion estimate

US sells 2-year notes at 4.898% vs 4.904% WI

Results of the $69 billion sale of 2-year notes

US March new home sales 0.693m vs 0.670m expected

US March 2024 new home sales

Best reading since Sept
Prior was 0.662 million (revised to 0.637m)
Sales +8.8% vs -0.3% prior
Supply at 8.3 months vs 8.8 months prior
Median price $437,700, down 1.9% y/y

Richmond Fed Manufacturing index -7 versus -7 estimate

Richmond Fed Manufacturing Index for April 2024

Prior month -11
Manufacturing index -7 versus -7 estimate (six months in a row below zero).
Services index -13 versus -7 last month
manufacturing shipments -10 versus -14 last month.
Employment -2 versus 0 last month.
Wages 16 versus 23 last month
prices paid 2.79 versus 3.22 last month.
Prices received 2.37 versus 2.23 last month.
New orders -9 versus -17 last month.
Backlog of orders -17 versus -25 last month.
Capacity utilization -5 versus -21 last month.
Capital expenditures -1 versus -9 last month.
Services expenditures -8 versus -17 last month.

Six-month forward:

Shipments 32 versus 19 last month.
Employment 3 versus 2 last month.
Wages 43 versus 44 last month.
Prices paid 3.29 versus 2.94 last month.
Prices received 2.29 versus 2.03 last month.
New orders 31 versus 19 last month.
Capital expenditures -1 versus zero last month.
Services expenditure -13 versus my 17 last month.

S&P Global services PMI 50.9 vs 52.0 expected

The latest US services and manufacturing surveys from S&P Global
Prior was 51.7
Manufacturing 49.9 vs 52.0 expected
Prior manufacturing reading 51.9
Composite PMI 50.9 vs 52.1 prior
April saw an overall reduction in new orders for the first time in six months
Companies responded by scaling back employment for the first time in almost four years
business confidence fell to the lowest since last November
Rates of inflation generally eased at the start of the second quarter, with both input costs and output prices rising less quickly at the composite level
However manufacturing input cost inflation hit a one-year high
Some service providers suggested that elevated interest rates and high prices had restricted demand during the month

From Chris Williamson, Chief Business Economist at S&P Global Market Intelligence:

“The US economic upturn lost momentum at the start of the second quarter, with the flash PMI survey respondents reporting below-trend business activity growth in April. Further pace may be lost in the coming months, as April saw inflows of new business fall for the first time in six months and firms’ future output expectations slipped to a five-month low amid heightened concern about the outlook.

“The more challenging business environment prompted companies to cut payroll numbers at a rate not seen since the global financial crisis if the early pandemic lockdown months are excluded.

“The deterioration of demand and cooling of the labor market fed through to lower price pressures, as April saw a welcome easing in rates of increase for selling prices for both goods and services. “Notably, the drivers of inflation have changed. Manufacturing has now registered the steeper rate of price increases in three of the past four months, with factory cost pressures intensifying in April amid higher raw material and fuel prices, contrasting with the wage- related services-led price pressures seen throughout much of 2023.”

Philly Fed April non-manufacturing index -12.4 vs -18.3 prior

The latest services survey for the Philadelphia area

Prior was -18.3
Firm-level activity +18.4 vs -2.3 prior
New orders +6.5 vs -3.9 prior
Employment +11.0 vs +3.5 prior
Wage and benefit cost index +27.4 vs +35.3

Slowing package delivery numbers highlights middling demand

UPS numbers a sign for demand

UPS reported earnings earlier today and there are some read-throughs on the strength of the economy.

The company reported a 3.2% decline in average daily volumes in its domestic segment and a 5.8% drop in its international segment in the quarter. However the company said volumes “showed improvement through the quarter”. Overall revenues at $21.7 billion were below $21.9 billion expected and $22.9 billion a year ago.

JPMorgan CEO Dimon: There is a chance stagflation could happen again

JPMorgan Chase CEO Dimon is on the wires saying:

There is a chance stagflation could happen again
The US economy is unbelievable and booming.
Even if we go into a recession, the US consumer is in good shape

BlackRock’s Rieder sees Federal Reserve being able to lower interest rates twice this year

Rieder sees inflation moderating

Rick Rieder is BlackRock’s chief investment officer of global fixed income.

He spoke in an interview on Bloomberg TV, saying the Fed still has scope to cut Fed Funds twice in 2024, as inflation will slow in the months ahead:

“It’s getting harder for them to do that, but I still think they can,”

Vanguard’s base scenario is a “deferred landing” for US economy, less aggressive Fed cuts

How many types of landings are there?

Vanguard is the world’s second-largest asset manager. The firm’s global head of rates expects less aggressive Federal Open Market Committee (FOMC) rate cuts, citing in part:

global risks of a rebound in price pressures
signs of stubborn inflation in the US
warns of tail risks such as a rebound in inflation or weakening in economicc growth
“If either of the presidential candidates was to campaign on a platform of fiscal expansion, we do think that will be very market relevant”

JP Morgan’s Kolanovic says the slide in US stocks is not over

Kolanovic has been a persistent bear, and holds a 4200 year-end S&P 500 forecast

Via a note from Kolanovic on Monday, saying the fall for US stocks is likely to extend lower, citing rising risks to the macroeconomy, including:

rising Treasury yields
strong US dollar
high oil prices
complacency around equity valuations
inflation staying hot
diminishing expectations for imminent Fed rate cuts
overly optimistic profit outlook
“The correction likely has further to go”
“Market concentration has been very high, and positioning extended, which are typically red flags, at risk of a reversal”
the current market narrative is very similar to last US summer, when upside inflation surprises and hawkish Fed revisions triggered a drop in risk assets
investor positioning appears more elevated now
“The multiple expansion seen in past months, extremely low volatility metrics up to recently, tightest credit spreads since 2007, and the general inability by market participants earlier in the year to identify any potential negative catalysts for stocks are starting to shift”

Commodities

Silver in steep sell-off after touching top of four-year range

The white metal is declining after touching the top of a four-year consolidation range at roughly $30.00.
Silver has fallen to $27.00 and could decline further with support not materializing till $26.00.

Silver has continued to sell-off after being rejected by the top of a long-term range at just below $30.00 (green line) on April 12.

The precious metal is now in the midst of a steep decline and will probably continue lower till support materializes from the top of a smaller year-long range at $26.00.

Oil climbs to $1.46 to settle at $83.36

Better risk mood and talk of Iranian sanctions help

Oil has passed its first test of $80.

WTI trade as low as $80.88 earlier but reversed to settle near the highs of the day at $83.34. It was helped along by improving risk appetite, a softer US dollar and the threat of more sanctions on Iran.

Oil snippets: 1 Barclays sees upside risk, 2 Venezuala to shift sales to digital currency

A couple of snippets on oil.

1. Barclays says risks to its forecast USD 90/bbl Brent fair value estimate for this year are skewed to the upside.

2. Venezuela is working to shift its oil sales to digital currency. This comes asoil sanctions are set to be reimposed. Venezuela will use Tether, pegged to the US dollar, state-run PDVSA use digital currency for oil export transactions to avoid having revenues from oil sales frozen in foreign bank accounts.

Info comes via Reuters.

EU News

European stocks end the day on the highs

Strong gains in Europe

The UK FTSE 100 hit a record high again today but it was the laggard in the big picture as strong risk appetite drove gains:

Stoxx 600 +1.1%
German DAX +1.6
UK FTSE 100 +0.2%
French CAC +0.9%
Italy MIB +1.9%
Spain IBEX +1.7%

Eurozone April flash services PMI 52.9 vs 51.8 expected

Latest data released by HCOB – 23 April 2024

Prior 51.5
Manufacturing PMI 45.6 vs 46.6 expected
Prior 46.1
Composite PMI 51.4 vs 50.7 expected
Prior 50.3

The services print is a 11-month high while the manufacturing print is a 4-month low. But at the balance, the Eurozone economy is seen expanding at its quickest pace in nearly a year in April. While economic conditions are at least improving, price pressures are seen intensifying slightly on the month. HCOB notes that:

“The eurozone got off to a good start in the second quarter. The Composite HCOB Flash PMI took a significant step into expansionary territory. This was propelled by the services sector, where activity has gathered further steam. Considering various factors including the HCOB PMIs, our GDP forecast suggests a 0.3% expansion in the second quarter, matching the growth rate seen in the first quarter, both measured against the preceding quarter.

“Several factors indicate that the recovery in the private service sector, which dominates the entire economy, is poised to be sustained. Firstly, there has been a positive momentum in new business for the past two months, which translates also into a bolder hiring policy. Secondly, the higher increases in output prices are not only a response to the faster rise in input costs but also reflect the confidence of service providers in setting prices. Lastly, the recovery is occurring simultaneously in the two most significant economies of the Eurozone, Germany and France. This suggests the presence of common factors such as lower inflation and higher wages, which bolster purchasing power and contribute to the resurgence in the service sector.

“The PMI figures are poised to test the ECB’s willingness to cut interest rates in June. Accelerated increases in input costs, likely driven not only by higher oil prices but also, more concerningly, by higher wages, are a cause for scrutiny. Concurrently, service sector companies have raised their prices at a faster rate than in March, fuelling expectations that services inflation will persist. Despite these factors, we expect the ECB to cut rates in June. However, we doubt that the central bank will adopt a “pragmatic speed”, as suggested by François Villeroy de Galhau from the ECB. Instead, we expect a more cautious approach.

“The best that can be said about the manufacturing sector in the eurozone is that production fell at the slowest rate for a year in April and that job losses have eased somewhat. Otherwise, the picture remains rather bleak, with new business continuing to decline rapidly, along with order backlogs. Weak demand for industrial products is also evident in the sharp decrease in the volume of purchased inputs and the absence of a turnaround in the inventory cycle. Although we anticipate a recovery in the manufacturing sector by the middle of the year, it’s essential to consider structural factors influencing the sector. China, whose companies are increasingly becoming a competitor for local industrial companies, particularly in the area of high-tech products, is likely to be a significant factor in this regard.”

Germany April flash manufacturing PMI 42.2 vs 42.8 expected

Latest data released by HCOB – 23 April 2024

Prior 41.9
Services PMI 53.3 vs 50.5 expected
Prior 50.1
Composite PMI 50.5 vs 48.5 expected
Prior 47.7

That’s a big beat on the services reading and it drags the German economy into expansion territory on the month. The euro has shot higher on this, with EUR/USD moving up from 1.0665 to 1.0695 at the moment. If anything else, this at least gives the ECB some room to work with if they decide not to move in June instead. HCOB notes that:

“Is the recession over? This is the obvious question which arises as the German Composite PMI has surpassed 50 in April for the first time since mid-last year. The answer is not straightforward. For starters, it appears that the recession was predominantly concentrated within the manufacturing sector, while the broader economy may have narrowly skirted such a downturn. Secondly, the headline PMI index for manufacturing fails to indicate any significant change in this regard, although output is contracting at a somewhat gentler pace. Lastly, and perhaps most crucially, the services sector is commencing the second quarter on a strong footing. Factoring in the PMI numbers into our GDP Nowcast, we estimate that GDP may expand by 0.2% in the second quarter, following an estimated 0.1% growth in the first quarter, both in comparison to the preceding three-month period.

“The service sector may serve as a catalyst for the overall economy. Comprising approximately two-thirds of the economy, services companies send out clear indications of a more sustained recovery. In addition to the accelerated growth in services activity, there are encouraging signs in the more forward-looking aspect of outstanding business, which has shifted into expansionary territory. Furthermore, the accelerated pace of hiring by companies compared to March is a further indication of optimism.

“Services companies show a good amount of self-confidence. This is reflected in their pricing strategies, among other factors. It indicates their belief that they can pass on the recent increase in input prices to customers to a greater extent than previously. This stands in contrast to companies in the manufacturing sector, where sales prices remain under pressure. On the input side, some companies are evidently grappling with the impact of higher oil prices. However, the overall downward trend in manufacturing input prices that has persisted since the beginning of 2023 remains intact.

“In the manufacturing sector, there are a few good signs, but more bad ones. Production in April experienced a less pronounced decline compared to March and we’re seeing a bit more optimism with respect to future output. However, the steeper drop in incoming orders, the sharpest in the past five months, is less encouraging. Additionally, quicker delivery times serve as further evidence of weakening demand. In this context, there are still no indications that the tentative turnaround observed in the global inventory cycle has reached Germany.”

UK April flash services PMI 54.9 vs 53.0 expected

Latest data released by S&P Global – 23 April 2024

Prior 53.1
Manufacturing PMI 48.7 vs 50.4 expected
Prior 50.3
Composite PMI 54.0 vs 52.6 expected
Prior 52.8

Similar to the Eurozone, it is a tale of two PMIs with the services reading coming in stronger while the manufacturing reading being weaker. At the balance, that’s still good news for the UK economy – which relies more on services – as the business expansion gathers pace. The services and composite readings are 11-month highs with the manufacturing reading being a 2-month low. S&P Global notes that:

“Early PMI survey data for April indicate that the UK economy’s recovery from recession last year continued to gain momentum. Improved growth in the service sector offset a renewed downturn in manufacturing to propel overall business growth to the fastest for nearly a year, indicating that GDP is rising at a quarterly rate of 0.4% after a 0.3% gain in the first quarter.

France April flash services PMI 50.5 vs 48.9 expected

Latest data released by HCOB – 23 April 2024

Prior 47.8
Manufacturing PMI 44.9 vs 46.9 expected
Prior 46.2
Composite PMI 49.9 vs 48.8 expected
Prior 48.3

The French economy nears stabilisation in April but it is a tale of two halves for the most part. While the services sector has returned to growth, the manufacturing sector is seen in deeper contraction territory on the month. But it is the first time in almost a year that services activity is seen expanding at least. HCOB notes that:

“The French economy is back on track. The Composite Flash PMI reached its highest level in 11 months, with 49.9 index points taking it almost out of the contraction zone. The only reason for that surprisingly robust figure is the expansion of the services sector, which experienced an increase in demand for the first time since April 2023. The manufacturing sector stays put in decline due to a deceleration of activity. Overall, our HCOB nowcast model for the second quarter points to a recovery of the French economy, driven by the services sector.

“The French services sector is the workhorse of the economy. Services activity grew for the first time since May 2023, when large protests started to drive negative economic sentiment. The main reason for the expansion was higher demand. Because demand was strong in April, backlogs of work declined at a slower pace compared to the previous month.

“French manufacturing output stays subdued, but we expect it will soon follow the path of the services sector. The manufacturing sector delays the overall economy’s recovery for now, though. The Output Index dropped for another month, mostly offsetting services activity growth. Weak demand in manufacturing was the main reason for the faster deterioration.

“Prices remain elevated due to higher wages, energy and oil prices. In particular, output price inflation reaccelerated in April, staying clearly above 50. Input prices also reaccelerated compared to the previous month. The labour-intensive services sector is mostly responsible for price pressures in France. Increases in wages and fuel prices were cited as the reasons for services and goods inflation, respectively. According to the Indeed Wage Tracker, wage growth should slow further in the coming months, appeasing monetary policymakers. We also believe that the recent resurgence in energy prices should calm down somewhat in the medium term.”

ECB’s Nagel: Need to be convinced that inflation is heading back to target before cuts

Comment from the Bundesbank leader

BOE’s Pill: The timing for a rate cut is still some way off

He wants to let markets know that they can envisage cutting rates but it isn’t imminent

No reason for BOE to move rates in lockstep with either Fed or ECB
Policy outlook has not changed substantially since March
There has been little news in recent months on inflation persistence
Now seeing signs of a downward shift in the persistent component of inflation dynamic
A cut in the bank rate would not entirely undo the restrictive policy stance
Will need to maintain a degree of restrictiveness in policy stance to squeeze out inflation persistency
Absence of news and passage of time have brought a bank rate cut somewhat closer

BOE’s Haskel: High inflation to remain unless labour market weakens

Remarks by BOE policymaker, Jonathan Haskel

UK labour market is extremely tight
Labour market tightness has been easing rather slowly

ECB’s de Guindos: Barring any surprises, June rate cut is a ‘fait accompli’

Remarks by ECB vice president, Luis de Guindos

But have to be very cautious about what comes afterwards
What the Fed decides is not only crucial to the US, but also for the global economy

Blackrock forecasts European Central Bank rate cuts before the Federal Reserve

First cut from the ECB projected in June, and from the Fed in H2 of 2024

ICYMI from Blackrock (BlackRock is the world’s largest asset manager). Analysts at the firm expect the European Central Bank to begin cutting interest rates before the US Federal Reserve.

Citing resilient economic growth and sticky inflation in the US as likely to delay the start of the Fed rate cuts beyond June. The ECB, on the other hand, is expected to cut at its June meeting.

“while we still expect the Fed to begin its easing cycle in 2H 2024, we no longer view the risks to that (relatively wide) timeframe as skewed to the earlier side. Rather, we now view them as more balanced.”

Asia-Pacific-World News

US drafting sanctions threaten to cut some Chinese banks off from global financial system

Wall Street Journal report on US targeting Chinese banks aiding Russia’s war on Ukraine

Wall Street Journal with the report (gated):

The U.S. is drafting sanctions that threaten to cut some Chinese banks off from the global financial system, arming Washington’s top envoy with diplomatic leverage that officials hope will stop Beijing’s commercial support of Russia’s military production, according to people familiar with the matter.
China has heeded Western warnings not to send arms to Russia since the beginning of the war, but since Blinken’s trip to Beijing last year, China’s exports of commercial goods that also have military uses have surged. With China now the primary supplier of circuitry, aircraft parts, machines and machine tools, U.S. officials say Beijing’s aid has allowed Moscow to rebuild its military industrial capacity.

China Securities Journal says there is still a chance the PBoC will cut the MLF rate

Chinese Communist Party controlled media outlet on the Medium-term Lending Facility (MLF)

China Securities Journal says the cut would reduce funding costs, and there is still a chance for a reduction.

The next Medium-term Lending Facility (MLF) rate setting is due on May 15.

China acquired recently banned Nvidia chips in Super Micro, Dell servers

Reuters with the info

Reuters have the report on China acquiring banned chips:

Chinese universities and research institutes recently obtained high-end Nvidia artificial intelligence chips through resellers, despite the U.S. widening a ban last year on the sale of such technology to China.
A Reuters review of hundreds of tender documents shows 10 Chinese entities acquired advanced Nvidia chips embedded in server products made by Super Micro Computer, Dell Technologies and Taiwan’s Gigabyte Technology Co.

China finance ministry has said it is in favor of the PBOC resuming trading Treasury bonds

Would help boost liquidity in the economy

The Wall Street Journal (gated) carry the report:

China’s Ministry of Finance said that they would support the People’s Bank of China gradually restarting to trade Treasury bonds in open-market operations as they look to better coordinate the country’s fiscal and monetary policies

Australian Consumer Confidence weekly survey falls to its lowest this year

Australian consumer sentiment taking a pounding

ANZ-Roy Morgan Australian Consumer Confidence fell 3.2pts to its lowest this year.

80.3 this week

prior 83.5

Comment from ANZ:

Economic and financial subindices all dropped. Confidence fell across housing cohorts, particularly so amongst renters.

Australia April preliminary PMI Manufacturing 49.9 (prior 47.3) Services 54.2 (prior 54.4)

Judo Bank S&P Global Manufacturing PMI Flash April 2024

Judo Bank S&P Global PMI Flash / Preliminary for April 2024

Manufacturing nearly jumped into expansion at a 3-month high, but not quite hitting the 50 line.
Services a tickle lower.
Composite moves to its highest since April 2022

Some of the pertinent commentary from the report. On inflation pressure:

The price indicators were up slightly in April, suggesting inflation within the Australian economy is above the RBA’s target and ‘sticky’.
Cost pressures are rising, which survey respondents put down to a combination of higher raw materials prices and the effects of a weaker Australian dollar.
While margin pressures are still evident in both the service sector and the manufacturing industry, businesses are still succeeding at passing on higher costs to final prices.

Japan April preliminary PMI Manufacturing 49.9 (prior 48.2) Services 54.6 (prior 54.1)

Jibun Bank S&P Global Manufacturing PMI Flash April 2024

Composite is 52.6, prior 51.7

Bank of Japan Governor Ueda on what inflation needs to do for a BOJ rate hike

Ueda restating well known BOJ policy

Bank of Japan Governor Ueda:

Don’t have any preset idea on timing, pace of future rate hike
If trend inflation accelerates in line with our forecast, we will adjust degree of monetary support through interest rate hike
If our price forecast changes, that will also be a reason to change policy
Future monetary policy guidance will depend on economy, price, market development at the time
Didn’t say anything new on BOJ policy last week in Washington
Tredn inflation is still somewhat below 2%, so need to maintain accommodative monetary conditions for the time being
If geopolitical risks, weak domestic demand cause disruptions in markets, BOJ will respond through flexible, nimble liquidity provisions
Annual wage negotiations have been, and always will be, among important economic variables we look at in setting policy
We decide on policy looking not just at wage talks, but various other economic variables
We decided to change policy in March because strong wage talk outcome came on top of fairly solid readings in other sectors of economy
Whether we will set policy with same emphasis on wage talk outcome will depend on conditions at the time
Its hard to say beforehand how long the BOJ should wait in gathering enough data to change policy
We would like to leave some scope for adjustment by not pre-committing to a certain policy too much
Our basic stance is that we will look at moves in trend inflation to achieve our price goal, and take a data-dependent approach in setting policy

Japan finance minister Suzuki says the weak yen has pros and cons for the economy

Merits and demerits

Japan’s finance minister Suzuki says he explained at last week’s meeting in Washington Japan’s strong concern over how the weak yen pushed up the cost of imports.

Japan’s concern was shared at meeting with South Korea
the trilateral meeting included the US
Won’t deny that last week’s discussions in Washington have laid groundwork for Japan to take appropriate FX action
won’t comment on current FX moves
government ready to respond appropriately to excessive FX moves
closely watching FX moves with high sense of urgency
won’t rule out any option, will deal appropriately with excessive FX moves
closely communicated with US and South Korea in FX when he was in Washington
reconfirmed commitment that excessive FX moves are undesirable

Cryptocurrency News

Ethereum could begin a rally if trading volume increases amid bullish expectations

Ethereum’s price often takes a downward shift after FTX and Alameda sell ETH.
Traders expect a price rise in ETH following reduced long liquidations and normalizing risk reversals.
Ethereum needs increased trading volume to break past key resistance levels.

Ethereum (ETH) has continued showing signs of a potential rally on Tuesday as most coins in the crypto market are also posting gains. This comes amid speculation of a potential decline following FTX ETH sales and normalizing ETH risk reversals.

Ethereum’s latest price movement is hinting at a potential rally. Here are key market movers driving the second-largest cryptocurrency:

Since March 1, FTX and Alameda Research have deposited 20,350 ETH at strategic points right before a price dip, according to Spot On Chain. This insight comes as FTX and Alameda deposited 4,500 ETH worth $14.4 million to Binance and Coinbase at $3,207 on Tuesday. Investors may need to observe if ETH will take a downturn as in previous times. Other investors may be using FTX’s move as a sell signal, hence the consistent price drop after the firm’s ETH sales.
With ETH’s recent price recovery, long traders are looking to gain control as long liquidations have slowed down significantly on Tuesday compared to the past two weeks, according to data from Coinglass. Short liquidations are increasing, with over $13.45 million liquidated, while long liquidations sit at $7.4 million in the past 24 hours.

ETH risk reversals have also normalized above -4%, from -12% one week ago, indicating traders are beginning to expect a price improvement, according to QCP Capital. As a result, “improving speculative sentiment could see short covering and a resumption of leveraged longs,” said QCP.

The Swiss National Bank is being urged to include cryptocurrency in their reserves

This is similar to a proposal back in 2022

A piece in Swiss newspaper Neue Zürcher Zeitung on Bitcoin lobbyists working to have the Swiss National Bank include the cryptocurrency in reserves:

“By including Bitcoin in its reserves, Switzerland would mark its independence from the European Central Bank. Such a step would strengthen our neutrality,” Luzius Meisser, president of asset manager Bitcoin Suisse, told local media.

Back in 2022, an advocacy group recommended the SNB purchase 1 billion Swiss francs worth of bitcoin per month in lieu of German government bonds.

SEC hit by lawsuit brought by Blockchain Association and Crypto Freedom Alliance of Texas

Blockchain Association, CFAT file lawsuit against SEC on Tuesday.
Groups challenge regulator’s “misguided attacks” on digital asset industry.
Crypto trade groups take issue with SEC move to broaden definition of ‘dealer’ of securities.

Two crypto industry groups Blockchain Association (BA)and the Crypto Freedom Alliance of Texas (CFAT) have filed a lawsuit against the Securities & Exchange Commission (SEC) in a federal court in Texas.

The two groups are challenging the SEC’s new rule that broadens the definition of who the regulator considers as a “dealer” of securities.

Google, Apple could remove Binance from their app store on Philippines SEC request

The Philippines SEC has requested Google and Apple to remove applications controlled by Binance from their App stores.
The exchange’s Philippines-based users are finding the exchange inaccessible to remove their funds.
BNB price increased over 1.5 times since the Philippines SEC issued its first warning on Binance in November 2023.

Binance-controlled applications on Google’s Play Store and Apple App Store could soon be removed for Philippines-based users afterthe Philippines SEC, which is responsible for regulating the country’s securities industry, banned several crypto trading platforms in 2023, including Binance.

The agency offered a three-month grace period for investors starting November 2023 to pull their funds off the crypto exchange Binance.

Follow our recently launched pages. Join our community and never miss a beat in the dynamic world of trading.

https://www.facebook.com/BilalsTechLtd

https://www.linkedin.com/company/bilals-tech/

https://t.me/Market_Moving_News

Round up of today’s market news

ByBilals Tech