North American News
Broad Sell-Off Across The Board: Dow, S&P, NASDAQ, and Russell 2000 All Fall
The US stock market experienced a broad sell-off across all major indices yesterday. Every single component of the Dow Jones Industrial Average was lower, with Intel leading the decline at -6.40%. Apple fell -4.85%, while Amazon dropped -4.07%.
Key Developments:
Indices: The Dow Industrial Average average fell 1033.99 points or 2.60% to close at 38703.26. The S&P index declined by 160.21 points or 3.00% to finish the day at 5186.34, while the NASDAQ index fell 576.08 points or 3.43% to end the session at 16200.08. The Russell 2000 Small-Cap Index dropped 70.14 points or 3.33% to close at 2039.16.
Sector and Stock Performances: Largest Declines:
Intel: -6.40% Apple: -4.85% Amazon: -4.07%
S&P 500 Sectors: Every sector was lower, led by:
Information Technology: -3.78% (Consumer Discretionary: -3.36%, Consumer Staples: -3.07%) Telecommunications: -3.36% (Energy: -2.69%)
After-Hours Earnings Reports:
Palantir Technologies Inc (PLTR)
Adjusted EPS: $0.09 (Beat, expected $0.08) Revenue: $678.1 million (Beat, expected $650 million)
After Hours: Shares up 16.44%
Lucid Group (LCID)
Adjusted EPS: -$0.29 (Missed, expected -$0.26) Revenue: $200 million (Beat, expected $190 million)
After Hours: Shares up 13.33%
CSX Corp (CSX)
EPS: $0.49 (Beat, expected $0.48) Revenue: $3.7 billion (Met expectations)
Intel’s significant decline, combined with a broad market sell-off, indicates a turbulent market environment, while strong earnings from Palantir and Lucid Group are providing some relief in after-hours trading.
ISM services for July 51.4 vs 51.0 expected
- US ISM services data for July 2024
Prior 48.8
- Business activity index 54.5 versus 49.6 prior
- Employment 51.1 versus 46.1 prior
- New orders 52.4 versus 47.3 prior
- Prices paid 57.0 versus 56.3 prior
- Supplier deliveries 47.6 versus 52.2 prior
- Inventories 49.8 versus 42.9 prior
- Backlog of orders 50.6 versus 44.0 prior
- New export orders 58.5 versus 51.7 prior
- Imports 53.3 versus 44.0 prior
- Inventory sentiment 63.2 versus 64.1 prior
Key components showed broad improvement:
- Business activity surged back into expansion
- New orders recovered, signaling improved demand
- Employment expanded for only the second time in 2024
- Supplier deliveries sped up, with the index falling to 47.6
US final July S&P Global services PMI 55.0 vs 56.0 prelim
- July US services and composite reports from S&P Global
- Prelim was 56.0
- Prior was 55.3
- Composite 54.3 vs 55.0 prior
Details:
- New orders increase for third straight month
- Employment rises for second consecutive month
- Input cost inflation accelerates to 4-month high
- Output price inflation eases to slowest since January
Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, said:
“The PMI surveys bring encouraging news of a welcome combination of solid economic growth and cooler selling price inflation in July.
“Another strong expansion of business activity in the service sector, which over the past two months has enjoyed its best growth spell for over two years, contrasts with the deteriorating picture seen in the manufacturing sector, where output came close to stalling in July.
“While manufacturers are reporting reduced demand for goods, this in part reflects a further switching of spending from consumers towards services such as travel and recreation. However, healthcare and financial services are also reporting buoyant growth, fueling a wide divergence between the manufacturing and service economies.
“Thanks to the relatively larger size of the service sector, the July PMI surveys are indicative of the economy continuing to grow at the start of the third quarter at a rate comparable to GDP rising at a solid annualized 2.2% pace.
“A further cooling of selling price inflation in the service sector meanwhile brings encouraging news for the Fed. Combined with a near-stalling of price increases in the manufacturing sector, the latest survey data point to average prices charged for goods and services rising at a rate which is indicative of consumer price inflation moving closer to the 2% target. However, the surveys saw some upward pressures on costs, especially in the service sector, which policymakers will likely be eager to see soften before being confident of inflation falling sustainably to target.”
US 2s/10s curve un-inverts for the first time in two years
- The curve has been inverted since July 2022
The yield curve inverting has an unblemished track record of predicting a US recession since 1955. However it’s not the curve inverting that signals the recession is here; it’s when the curve un-inverts that it means the recession is here.
We won’t see the recession until it filters through into economic data but the market is certainly wilting. Beyond the slope of the curve, US 2s are down 20 basis points at 3.66%. Nominally, that’s 170 basis points below Fed funds and that kind of rate cutting doesn’t happen without real trouble in the economy.
Fed’s Goolsbee: Jobs numbers are weaker but it’s not looking yet like a recession
- Comments from the Chicago Fed President
- The Fed does need to be forward-looking in setting policy
- If you look at domestic purchases, the GDP was relatively stronger than we expected
- We’re going to get a lot of information between now and the next meeting
- The international component of this is a factor
- It’s the market to react and the Fed’s jobs to act, one of those has a lot more volatility than the other
- Asked about emergency cut, says he can only speak for himself
- Everything is always on the table
- We will respond to conditions
- If the economy deteriorates, we will fix it; the Fed will respond to conditions
- I’m not going to bind our hands going forward
- If jobs data is a longer-term sign, we should then respond to what those forces are
- We’ve very restrictive and you only want to be restrictive like that if you think the economy is over heating
Canada is going to sit this one out. Canadian markets are closed today
Commodities
Crude oil settles at $72.94
- Down -$0.58 on the day
The price of crude oil settled down -$0.58 on the day at $72.94. The low for the day reached $71.67. The high reached $74.46.
- Crude oil futures settle lower for the third consecutive session.
- Prices settled well above the day’s lows.
- Impact from the global equities selloff eases, causing a brief midsession move into positive territory.
There is increased tension in the Middle East and demand from summer driving in the US still is strong. Nevertheless, the price did reach the lowest level since early February.
Gold’s Safe Haven Status Tested Amid Market Turmoil
Gold Struggles as Market Sentiment Shifts The precious metal has been known to thrive in times of uncertainty and economic turmoil. However, when conditions become particularly dire, gold often loses its luster. Today is a prime example: after holding strong through the Asian session and early European trading, gold prices have plummeted $76 to around $2366 (3%) as markets succumb to intense selling pressure. Silver has also taken a hit, falling 7%.
This pattern of price action is familiar in the world of gold, where it serves as a safe haven until the situation reaches crisis levels. At that point, investors seek liquidity elsewhere, and even reliable stores like gold become vulnerable to further sell-offs. Despite still being a better store of value than many alternatives – including cryptocurrencies – if gold fails to hold above $2350, we can expect more liquidation.
The silver lining is that the trade on gold will likely involve buying into this dip as markets stabilize and central banks begin delivering rate cuts, providing a potential opportunity for investors to get back in at attractive levels.
Saudi Aramco raised its selling price for Arab light for Asia, first bump higher in 3 months
- Raised 20 cents vs. 50 cents expected
Saudi Aramco has raised its official selling price (OSP) for Arab light for Asia by USD 0.20/bbl to USD 2.00/bbl above the benchmark (Oman/Dubai average) for September.
This is the first bump higher in three months.
EU News
European equity close: Not a pretty picture but closes above the lows
- Closing changes in Europe
- Stoxx 600 -2.2%
- German DAX -2.0%
- UK FTSE 100 -2.2%
- French CAC -1.6%
- Italy MIB -2.4%
- Spain IBEX -2.3%
Eurozone July final services PMI 51.9 vs 51.9 prelim
- Latest data released by HCOB – 5 August 2024
- Prior 52.8
- Composite PMI 50.2 vs 50.1 prelim
- Prior 50.9
Even with France underpinning growth amid the Olympics, the euro area economy is seen grinding to a halt in July. The manufacturing recession continues to be the main drag but the services sector is also starting to slow down as well. And that will be a worry for the ECB with inflation pressures continuing to persist to start Q3. HCOB notes that:
“The eurozone’s economy is growing at a snail’s pace in July. Sector-wise, services is not picking up speed like it did earlier in the year, while the industrial slump has continued unabated. Because of this, the HCOB Composite Output PMI is just hovering above the expansion line. So, while the second half of the year started off pretty weak, the PMIs and the official numbers for economic growth in the second quarter were surprisingly good. Given this situation, our 0.7% growth forecast for the year is still conservative.
“You cannot miss the slowdown in the service sector. The PMI has dropped for three months straight to 51.9, companies have been more hesitant about hiring, and new business is barely ticking up. The extraordinary effects from the European Football Championships in Germany, the Olympics in France, and Taylor Swift’s concert tour in Europe are winding down too. So, the service sector probably won’t give us much of a boost in the second half of the year.
“There is still no relief from inflation. Sure, sales prices are climbing at the slowest rate in 38 months, and this generally applies to input costs too, but inflation is still pretty high given the weak economy. Over the past 25 years, selling prices have usually stayed flat on average when the PMI activity index was at 52.0 or lower, and historically, input prices rose much more slowly than they are now. We think this points to wage pressure caused by demographic shifts, making it harder for the ECB to hit its 2% inflation target.
“The slump in the service sector is happening across the eurozone. Growth has slowed down in Germany, Italy, and Spain. France is the only exception, where the PMI has gone up. But even there, the sector is hardly growing at all and is therefore still lagging behind the other countries.”
Eurozone June PPI +0.5% vs +0.4% m/m expected
- Latest data released by Eurostat – 5 August 2024
- Prior -0.2%
Looking at the breakdown, there was an increase in prices for intermediate goods (+0.1%), energy (+1.6%), capital goods (+0.1%), and non-durable consumer goods (+0.1%). The price for durable consumer goods was stable on the month. If you strip out energy prices though, the prices for the total industry would’ve only reflected a 0.1% increase in June.
Eurozone August Sentix investor confidence -13.9 vs -8.0 expected
- Latest data released by Sentix – 5 August 2024
- Prior -7.3
Investor morale slumped further in August, with the headline reading dropping to its lowest since January now. The expectations index also fell from 1.5 in July to -8.8 in August, highlighting worries over the economy in the next six months. Sentix noted that investors were concerned about geopolitical uncertainty, as well as the upcoming German and US election among other things.
PMIs on the agenda in Europe today
Germany July final services PMI 52.5 vs. 52.0 prelim
- The final reading from HCOB – 5 August 2024
- Final Services PMI 52.5 vs. 52.0 prelim and 53.1 prior.
- Final Composite PMI 49.1 vs. 48.7 prelim and 50.4 prior.
Key findings:
- HCOB Germany Services PMI Business Activity Index at 52.5 (Jun: 53.1). 4-month low.
- HCOB Germany Composite PMI Output Index at 49.1 (Jun: 50.4). 4-month low.
- Output prices rise at slowest rate since April 2021.
Comment:
Commenting on the PMI data, Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, said:
“If one were to go by the newspaper headlines, one would have to conclude that the concerts of Taylor Swift and her fans, the Swifties, have supported services activity in Germany. Even with the concerts, however, the growth pace has actually slowed down for the second month in a row, due to the weakening of consumer services, among other sectors. The Finance sector and Information & Communication did better, holding up activity in growth territory. Overall, service providers aren’t propping up the economy as much as they used to earlier in the year, at a time when the manufacturing sector is tanking even more.”
“Service providers’ profit margins are getting squeezed. Production costs are going up a bit faster than last month, but companies are finding it even harder to pass those costs onto customers. Because of this, among other reasons, they are trying to save on labour costs and have cut jobs for the first time since the end of 2023.”
“Growth could keep slowing down in the next few months. New business only grew a little in July, and outstanding business has been dropping almost continuously since mid-2023. If the service sector stalls, the whole economy could slip into a recession because manufacturing continues to shrink sharply. Sadly, a recession (technically defined as two straight quarters of negative growth) is not just a distant possibility anymore, given that the economy contracted in the second quarter.”
“Even with the current economic slowdown, service providers aren’t feeling hopeless. In fact, companies are more confident than they were in June about expanding their activities in a year. Some are finding hope in new tech developments and plan to explore new markets. We’re also pretty sure that new technologies – especially Artificial Intelligence – will give growth a positive boost.”
France July final services PMI 50.1 vs 50.7 prelim
- Latest data released by HCOB – 5 August 2024
- Prior 49.6
- Composite PMI 49.1 vs 49.5 prelim
- Prior 48.8
It’s a slight improvement to June, even with the downwards revision to the July figures. New business continues to fall while business confidence hits the lowest for the year, which is a major setback considering that all of this should have at least been underpinned by the Olympics. HCOB notes that:
“The Olympic Games are boosting the French economy. According to anecdotal evidence, there are companies for which the Olympic Games are generating unusually high business activity in July. This does, however, mean that business activity might drop in September when the Olympic Games are over. Additionally, lower uncertainty due to the end of the election period increased activity levels. In July, business activity edged higher, with the respective index at 50.1, slightly above the expansion threshold. In the third quarter, the French economy might grow in the ballpark of 0.5% to 0.6% because of the Olympic Games and due to stronger growth in the service sector, which we also might see in the August HCOB PMI figures.
“French service providers are turning less optimistic for the upcoming twelve months. This is partially due to unusually high activity at present because of the Olympic Games, meaning firms are expecting lower sales and activity once the event has finished. Accordingly, employment growth softened further to a five-month low. “Prices still pose a risk. In July, input and output prices increased at a faster rate compared to the previous month. Input prices accelerated due to salary increases on a broader scale, while some companies remarked on broad-based inflationary pressures. Accordingly, selling prices rose as companies passed on the higher input prices.”
Italy July services PMI 51.7 vs. 52.9 expected
- The latest data from HCOB – 5 August 2024
- Services PMI 51.7 vs. 52.9 expected and 53.7 prior.
- Composite PMI 50.3 vs. 51.3 prior.
Key findings:
- Activity and new business rise at slower rates.
- Business confidence weakest in 2024 so far.
- Cost inflation trends upwards, while charge inflation cools.
Comment:
Commenting on the final PMI data, Dr Tariq Kamal Chaudhry, Economist at Hamburg Commercial Bank, said:
“Services drives the Italian economy amid concerns of slowing growth. The service sector remains the main engine of the Italian economy, yet recent indicators suggest potential headwinds. The headline HCOB Italy Services PMI stood at 51.7 in July, marking a significant decline from the previous month. This represents the weakest activity growth since January 2024.”
“Prices remain elevated. Service providers continue to grapple with sharply rising input costs, which are outpacing output price hikes. According to surveyed companies, this increase reflects higher labour, fuel, and material costs.”
“Stagnating orders worry service providers. Of particular concern is the trend of slowing order growth compared to previous months this year, raising fears of a loss in growth momentum. The demand slowdown is more pronounced in international business than in domestic markets.”
“Future outlook loses momentum. While employment growth remains robust, future output expectations have slipped significantly below the historical average. Optimism is sustained by hopes for new customers and a stronger influx of new business, as well as a more stable geopolitical environment. However, the escalating tensions in the Middle East will be crucial to monitor, as market participants will assess its impact in the coming months.”
Spain July services PMI 53.9 vs 56.0 expected
- Latest data released by HCOB – 5 August 2024
- Prior 56.8
- Composite PMI 53.4
- Prior 55.8
The euro area economy is seen stuttering to start Q3 and that could well pressure the ECB into cutting in September. For now, traders have fully priced that in with the odds of a 50 bps rate cut even touching ~62% earlier in the day. HCOB notes that:
“Spain’s economy is continuing to outperform the eurozone. The good news first: Spain’s economy once again exceeded expectations in the second quarter, with a growth rate of 0.8% QoQ. Currently, we in Germany can only dream of such a figure. While the European Championship match between Germany and Spain was very close, economically, the countries are currently playing in different leagues. Germany is simply unable to break out of stagnation, primarily due to the weak industrial sector, with private consumption also falling short of expectations. Spain, on the other hand, still continues to benefit from catch-up effects in the tourism sector. However, looking at the HCOB PMI, growth in Spain may slow somewhat in the third quarter. In line with developments in the manufacturing sector, sentiment among Spain’s service providers is also slightly dampening. Although growth continued in July, it slowed significantly. The Business Activity HCOB PMI fell by almost 3 points to 53.9.
“Spain’s service sector will grow slower in the third quarter. According to the latest PMI figures, the growth rate in Spain’s service sector has decelerated in July. Despite persistently positive market conditions, activity and demand are showing a slight cooling. Anecdotal evidence indicates that revenue growth is primarily driven by still strong foreign demand. Due to the currently high workload resulting from demand and increasing backlogs, companies continue to seek to expand their workforce. This ongoing trend has direct impacts on inflation, as wages are cited by companies as one of the main factors for rising operating costs.”
UK July final services PMI 52.5 vs. 52.4 prelim
- The final reading from S&P Global – 5 August 2024
- Final Manufacturing PMI 52.5 vs. 52.4 prelim and 52.1 prior.
- Final Composite PMI 52.8 vs. 52.7 prelim and 52.3 prior.
Key findings:
- Demand for UK services rises at fastest pace since May 2023.
- Business confidence rebounds to five-month high.
- Price pressures remain strong.
Comment:
Joe Hayes, Principal Economist at S&P Global Market Intelligence said:
“With the general election period coming to an end at the start of July, survey data for last month showed the UK service sector enjoyed a modest rebound after a fairly subdued end to Q2. The Business Activity Index crept up only slightly, but the New Business Index jumped by over three points to its highest level in 14 months as firms reported an influx of new clients and contracts.”
“July’s accelerated expansion in sales activity crucially suggests business and consumer confidence has improved, and albeit only one month into the second half of 2024, the latest survey results bode well for a reasonable GDP growth print in Q3.”
“Still, there continues to be sluggish progress on inflation. The positive takeaway is that price pressures, both regarding input costs and output prices, are at their lowest since early 2021. The concern, however, will be that the respective PMIs are still well above their pre- pandemic trends, and these are the benchmarks for the Bank of England to hit before claiming the fight against inflation is over.”
Asia-Pacific-World News
China Caixin Services PMI for July 52.1 (prior 51.2)
- Improvement for China’s services sector in the survey
China Caixin Services PMI rises to 52.1 in July, beats expectations of 51.4
- Services PMI increases to 52.1 from 51.2 in June
- New business growth accelerates to solid pace
- Employment growth fastest in nearly a year
- Prices charged unchanged despite rising input costs
- Composite PMI dips to 51.2 from 52.8, 9-month low
- Manufacturing sector facing greater pressure than services
The Caixin China Services PMI rebounded in July, coming in at 52.1 versus 51.2 in June. This extends the expansion streak to 19 straight months, though the pace remains below the year-to-date average.
New business growth picked up, supported by improved demand and expanded service offerings. Export growth continued but slowed to an 11-month low. Employment rose at the fastest rate in nearly a year.
Despite higher input costs, firms kept selling prices unchanged to stay competitive amid cautious optimism. The Composite PMI fell to a 9-month low of 51.2, dragged down by weakness in manufacturing.
Caixin economist Wang Zhe noted that while services improved, manufacturing faced greater pressure. He highlighted that “insufficient effective domestic demand and weak market optimism” remain key challenges for the economy.
PBOC sets USD/ CNY reference rate for today at 7.1345 (vs. estimate at 7.1912)
- In open market operations:
- PBOC injects 0.67bn via 7-day RR, sets rate at 1.7%
- 302n yuan mature today
- net 301bn yuan drain today
Australian July Services PMI (final) 50.4 (prior 51.2)
- S&P Global / Judo Bank final Australian services and composite PMIs for July 2024
Judo Bank S&P Global PMIs:
- Services 50.4
- Composite 49.9
Australia Services PMI: Growth slows, new orders fall in July
- Judo Bank Australia Services PMI dips to 50.4 in July from 51.2 in June
- New business declines for the first time since January
- Employment growth eases to 19-month low
- Input costs and selling prices rise at fastest pace in nearly a year
The Australian services sector continued to expand in July, but at a slower pace as new orders fell for the first time since January. The Judo Bank Services PMI dropped to 50.4 from 51.2 in June, marking the slowest growth in the current 6-month expansion streak.
Key details:
- New business declined modestly, with transport & storage seeing the sharpest drop
- Export orders fell at the fastest rate in 7 months
- Employment growth eased to a 19-month low
- Input costs and selling prices rose at the quickest pace in 11 months
The data suggests some cooling in the services sector as stimulus effects fade. However, economists expect government tax cuts and cost-of-living support to potentially boost activity in August and September.
The overall Composite PMI fell to 49.9 (from June’s 50.7), indicating a decline in private sector output. Manufacturing weakness was the main driver, though services growth also slowed.
Australian data – private inflation survey for July comes in at 0.4% m/m and 2.8% y/y
- Australia Melbourne Institute Inflation
Australia Melbourne Institute Inflation for July 2024
0.4% m/m
- prior 0.3%
2.8% y/y
- prior 3.2%
Core (trimmed mean) monthly inflation came in at +0.1% in July, which is its slowest pace since February this year. For the y/y core:
- 2.6% in July, from 3.0% in June
- slowest since April 2022
New Zealand commodity prices -1.7% m/m (prior -1.5%)
- ANZ Commodity Price Index
The index tracks the prices of 17 of New Zealand’s major commodity exports, including dairy products, meat, wool, forestry products, and seafood.
In New Zealand dollar terms, the index lifted 0.2% m/m as the NZD Trade Weighted Index fell 1.9% in July.
As part of the report are comments from ANZ on shipping prices:
- Global shipping prices generally firmed through July. Escalating tensions in the Middle East continue to make it very difficult to move product through the Suez Canal, meaning ships are tending to take longer, more time consuming routes to get to market. This means the supply of ships and containers is tighter than usual, which is supporting shipping prices despite global manufacturing and trade being relatively weak at present. Seasonal demand for shipping tends to peak in the third quarter each year so this extra demand is expected to underpin prices for the next few months.
Japan’s Nikkei closes down by a whopping 12% to its lowest since November last year
- Margin calls abound in the Japanese stock market today
In terms of daily points fall, this is a record decline for the Nikkei. This even exceeds the drop from Black Monday in 1987. Talk about pain.
Bank of Japan June meeting minutes – few members said import prices rising due to recent yen fall, creating upside inflation risk
- Bank of Japan June meeting minutes
- A few members said import prices rising due to recent yen fall, creating upside inflation risk
- One member said cost-push inflation could heighten underlying inflation if it leads to higher inflation expectations, wage increases
- One member said pass-through of higher labour costs accelerating, could appear in consumer inflation
- One member said BOJ might need to consider adjusting degree of monetary easing as inflation might overshoot due to renewed cost-push pressure
- One member said BOJ must raise rates at appropriate timing without delay
- One member said rate hike must be done only after inflation makes clear rebound, data confirms heightening in inflation expectations
- Members agreed recent weak yen pushes up inflation, warrants vigilance in guiding monetary policy
- One member said BOJ’s monetary policy should not be swayed by short-term fx moves
Japan Services PMI for July 2024: 53.7 (prior 49.4)
- S&P Global / Jibun Bank PMIs
Services and composite PMIs:
Services 53.7
- prior 49.4
Composite 52.5
- prior 49.7
Japan stocks – circuit breaker triggered for Topix
A stock index circuit breaker is a mechanism used in stock markets to temporarily halt trading when an index experiences a significant drop in value. The purpose of this system is to prevent panic selling and allow time for investors to process information and make rational decisions.
- circuit breaker triggered for Topix
- also for government bond futures
Japan chief cabinet secretary Hayashi closely watching market moves with sense of urgency
- Japan chief cabinet secretary Hayashi
- Won’t comment on daily share moves
- Closely watching market moves with a sense of urgency
- Share prices determined by various factors including economic situation, corporate activity
South Korea exchange triggered its ‘sidecar’ on Kospi futures
- Catching up on this after Kospi 200 futures fell 5%, program trading halted for 5 mins
The ‘sidecar’ is a rule that lets the Korea Exchange (KRX, the operator of SK’s bourse) halt futures trading of equities during periods of extreme market volatility.
- Triggered when the benchmark KOSPI futures contract moves more than 5% from the previous close.
- The KRX limits program trading for five minutes as a ‘circuit breaker’
Cryptocurrency News
Ethereum’s Descent: Market Turmoil Triggers 25% Crash Following Jump Crypto’s Move
Ethereum Suffers 25% Crash Following Jump Crypto’s Move Ethereum suffered its largest loss among top cryptocurrencies by market capitalization after Jump Crypto sale triggered a series of sell orders.
Key Developments: Jump Crypto Move: Jump Trading’s digital currency arm moved $410 million worth of wstETH to exchanges, causing widespread selling pressure. Liquidations: Liquidations have risen above $380 million in past 24 hours as long traders bleed heavily. Exchange Flows: Exchange outflows indicate that bulls are returning to the market.
Market Reaction: Ethereum’s price has plummeted by 25% amid increased uncertainty surrounding Jump Crypto’s move. The cryptocurrency currently trades at around $1,500.
Trader Sentiment: According to CoinTelegraph’s Fear and Greed Index, trader sentiment is characterized as “extreme fear” on the one-day timeframe. Macro Factors: War tensions between Israel and Iran, a sharp interest rate rise in Japan, lower-than-expected US Nonfarm Payrolls data, and repayment of creditors from Genesis Trading and Mt. Gox have contributed to the market turmoil.
Daily Market Movers: Ethereum’s 25% crash is likely driven by Jump Crypto’s move and broader macro factors impacting the cryptocurrency market.
Crypto ETFs’ Bloody Week: $528 Million in Outflows as Digital Assets Bleed Value
Crypto ETFs Suffer $528 Million Outflows Amid Digital Asset Losses Crypto investment products have recorded net outflows for the first time in four weeks, with digital assets shedding $528 million.
Key Developments: Net Outflows: Crypto investment products saw a total of $528 million in net outflows last week, ending their streak of steady inflows. Bitcoin Impact: Bitcoin was hit hardest, recording $400 million in outflows. This could be attributed to the general dip in the crypto market and fears of a recession.
Ethereum Performance: Ethereum ETFs recorded net outflows of $146 million, stretching its total net outflows since launch to $430 million. Market Reaction: The general downturn triggered heavy losses among derivatives traders, with total crypto liquidations nearing $1.1 billion.
Geographic Breakdown: US Outflows: The US saw the highest outflows, totaling $531 million. Hong Kong, Germany, and Sweden also recorded outflows of $27 million, $11 million, and $6 million respectively. Canada and Switzerland were unaffected by the general outflows, seeing inflows of $17 million and $28 million.
Macro Factors: The market downturn was triggered by Genesis Trading’s crisis and continued Mt. Gox creditor repayment. War tensions between Israel and Iran, a sharp interest rate rise in Japan, lower-than-expected US Nonfarm Payrolls data also contributed to the bearish sentiment. Daily Market Movers: Crypto ETFs suffered $528 million outflows as digital assets saw increased losses amid market pressure. The general downturn has wiped out $367 billion from its value.
Bitcoin falls to six-month low, breaks under $50,000 mark
- There’s carnage everywhere in markets
Bitcoin has had a rough showing since the weekend, falling below $60,000 yesterday and has now broken below $50,000. It’s the first time since February that the cryptocurrency is testing waters below the key level. And the heavy selling comes as traders are in a full-fledged flight to safety mode across markets.
Looking elsewhere, Ether is also down a whopping 16% today to $2,239 currently – also its lowest since February.
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