Round up of today’s market news

North American News

Market Volatility Grips US Stocks, NASDAQ and Russell 2000 Close Down Over 2%

• NASDAQ falls -4.41% for its worst decline since September 2023

Major US Stock Indices Experience Late-Day Tumble, Closing at Session Lows; Russell 2000 Small-Cap Index Drops by 2.09%, While NASDAQ Index Falls by 2.04%

Closing numbers:

• Dow Industrial Average average -570.17 points or -1.49% at 37815.93
• S&P index -80.46 points or -1.57% at 5035.70
• NASDAQ index -325.26 points or -2.04% at 15657.82.

The small-cap Russell 2000 fell -42.12 points or -2.09% at 1973.90.

For the trading month, the Dow Industrial Average which had its worst month since September 2022. The S&P index at its worst month since September 2023 and the NASDAQ index also had its worst month since September 2023.

• Dow Industrial Average average fell -5.0%
• S&P index fell -4.16%
• NASDAQ index fell -4.41%
• Russell 2000 fell -7.09% – its worst month since September 2022.

Amazon EPS $0.98 vs $0.84 estimate, on Revenues of $143.30 vs $142.6B estimate

• Amazon EPS and Revenues for quarterly earnings.

• Revenue: $143.3B vs expectations of $142.6 billion, up from $127.4 billion in Q1 2023.
• Adjusted Earnings Per Share (EPS): $0.98 vs expectations $0.84, an increase from $0.31 in Q1 2023.
• Online Stores: $xx.xB vs revenue expectations of $54.8 billion, up from $51.1 billion in Q1 2023.
• Amazon Web Services (AWS): $25.04 vs revenue expectations of $24.1 billion, up from $21.4 billion in Q1 2023. That was an increase of 17%. Expectations was 14.7%
• Advertising: Revenue expected to be $11.8 billion, up from $9.5 billion in Q1 2023.

Amazon plans to invest dollars $750 million in technologies resources, training, and programs to further improve safety across its network.

Guidance estimate 150.13 B

• operating income is expected to be between $10 billion and $14 billion
• Expects Q2 net sales to be 144B versus 149B
• AWS growth rate now at $100B annual reventue run rate

Amazon shares are trading up $5.80 or 3.26% at $180.81.

Super Micro Computers EPS $6.65 vs $5.78 estimate. Revenues $3.85B vs $3.95B estimate

• Mixed results for Super Micro Computers

• Revenues USD 3.850 million vs.estimate USD 4.0 million
• Q3 adjusted EPS USD 6.65 vs. estimate USD $5.74
• Q3 adjusted gross margin 15.6%
• Q3 gross margin 15.5%

Guidance

• EPS $7.62 – $8.42 versus expected $6.97.
• Net sales expected at $5.1 billion – $5.5 billion versus expected $4.73 billion

Super Micro Computers shares are trading higher and lower after the release and currently trades down -1.61% at $845 in volatile trading.

US April Texas services sector outlook -10.6 vs -5.5 prior

• Texas-area survey from the Dallas Fed

• Prior was -5.5
• Revenues index -0.3 vs +4.0 prior
• Employment -2.6 vs -1.2 prior (lowest since 2020)
• Wages and benefits +14.2 vs +19.5 prior
• Selling prices +3.9 vs +7.7 prior

Comments in the report:

Truck transportation

• We repair long-haul trucks. The volume just keeps going down, which means everyone is holding back on repairs, so we have no work. Inflation keeps driving our costs up. It’s not looking pretty for trucking.

Support activities for transportation

• We are seeing an uptick in rates and activity. The excess capacity slowly bleeding out of the market is causing this.

Publishing industries (except internet)

• Momentum is still based on intuitive smarter software revisions. Commercial interest is also finally increasing with better relationship contacts to speed credible traction and interest for adoption going forward. We are more focused now on marketing and sales.
• The impact of the higher rate environment seems to be catching up, with general purchase intent among customers flattening out. At the same time, budget cuts and political uncertainty have impacted our public sector business as well, creating additional uncertainty across our business.

Credit intermediation and related activities

• The stress of an election year adds to the concern citizens have about the direction of our economy.
• We recently renegotiated our $600 million debt facility. Our cost of funds went from 9 percent to 14 percent—that’s a pretty big hit to our bottom line and resulted in us increasing prices to our customers. Our business focus has been on forecasted easing; however, the reality of rates staying higher longer is creating uncertainty.
• Commercial real estate transactions are down by 70-80 percent according to the brokers we talk to, and our loan origination volume reflects that as well. Borrowers are concerned about future business prospects. We recently had a client decide not to take a loan to refinance a warehouse used in their business because they were concerned about their future business prospects. At the same time, the cost of everything we buy, from paper to electricity, is rising.
• The Federal Reserve signaling it will hold the rate at the current level for longer has affected our outlook negatively. One of our biggest issues with inflation is the cost of housing. These high rates do not help that, and prices of everything else are not declining or remaining stable.

Securities, commodity contracts and other financial investments and related activities

• Recent movement in long-term rates, combined with the Fed holding rates longer, have delayed the expected value of investment recovery until 2025 or later.

Insurance carriers and related activities

• We are recruiting experienced insurance professionals, and there is a small pool to draw from, unfortunately. We will keep looking.
• Property insurance and affordability are slowing our growth opportunities.

Real estate

• The increase in treasury yields since last fall has negatively impacted deal-making activity in the income property industry
• We are a real estate broker company and we have about 350 agents. They are independent agents not salaried employees. Our business slows during election years, and high interest rates have hurt first-time buyers.
• Cost of capital is weighing on our customers and decreasing volume.

Rental and leasing services

• We are a construction machinery and material handling dealership. Our business in the first quarter of 2024 was down 2 percent, and the industry was down 12.3 percent. Our manufacturing clients seem almost on the verge of panic, and there is stuff in inventory. We need a guest-worker program to meet our skilled-labor needs long term.

Professional, scientific, and technical services

• Persistent inflation and the Fed potentially delaying rate cuts are causing uncertainty for the second half of 2024.
• We are still worried about the election causing uncertainty in our clients and prompting a slowdown later this year. Some clients are still worried about inflation and are stalling projects because of the volatility in the supply market. Overall, it is tough to make any forecast right now. Our backlog is strong for the next couple of months, but not as far in the future as we would like.
• The market was slower in the first quarter, but it is now in recovery.
• We are increasingly seeing small professional firms shrinking or simply closing up shop. The labor shortage is a major reason for giving up the fight. There’s plenty of demand for professional services, but there is not enough trained staff. Retaining staff is a major headache. Owners nearing retirement are giving it up sooner rather than later.
• Burdensome federal regulations are increasing the cost to do business, such as the so-called “Corporate Transparency Act” and minimum wage increases that just continue to drive inflation.
• General outlook has improved primarily due to our increased investment in marketing and an increase in general business activity.
• We see a slight uptick in transactional matters.
• Trying to factor in how remote-work scheduling impacts the need for space and resources is challenging.
• Competitive labor market remains; it’s harder to recruit great talent; health insurance is increasing.
• We have not been this slow since the Great Recession. This includes Covid. We cannot understate how terrible the prospective real estate market is. People are not filing zoning cases, meaning in two years there will not be construction. Volumes have gone down in the automotive industry. It seems they are beginning to turn around, so we’re hoping.
• This real estate market is hard to figure out. With the 10-year rate still moving in the wrong direction, and the likelihood of a rate cut not coming this year due to inflation and the strength of the economy, we just can’t see the market improving until next year.
• The Fed is now unlikely to cut interest rates; concerns over recession continue.

Management of companies and enterprises

• Overregulation takes away a lot of time and money.

Administrative and support services

• Continued high interest rates, inflation and general economic malaise has caused employers to be very reluctant to hire professional level talent. They may replace talent if they have attrition, but in general, they are very slow to make any new hire decisions.
• There has been a marked decline in requests for quotes for the month. This decline does not fit in our normal seasonal changes.
• The intensity of international conflict and increasing long-term rates certainly raise concerns.
• Geopolitical tensions are creating an uncertain environment. Also, upcoming elections and how this may affect the Fed’s monetary policy is a concern.
• High interest rates have drastically hindered our ability to grow our business, and it looks like a rate cut is not likely happening in 2024.

Texas Retail Outlook Survey

Accommodation

• Between increasing inflation, high interest rates and instability in the Middle East, we are growing more concerned that the upcoming summer travel season will be depressed compared to prior years.
• March 2024 is viewed as a contradiction in that we had several areas perform at or close to expectations and others that were far below. That seems to be the same in April. Difficult to understand what is happening.

Food services and drinking places

• The stalled return to office and the decline of weekday business travel to downtown remain drags on revenue. We see a softening in other meal periods, and we believe it is due to the increase in menu prices. Hiring experienced staff with knowledge remains very difficult. Where did seasoned workers go? Cost of goods sold continues to increase.
• We are still hanging on by a thread after closing one business last month.
• The energy sector continues to be strong, which positively affects my business. Midland continues to attract a younger population.

Motor vehicle and parts dealers

• The margin on new vehicles sold per unit declined 50 percent year over year in March 2024, which was a direct benefit to the consumer.
• We are continuing to see labor shortages in the workforce and a lack of effort to pursue the positions available from those applicants responding to open positions.

Electronics and appliance stores

• Building activity is down still and looks to be getting worse.

US April consumer confidence 97.0 vs 104.0 expected

• US consumer confidence data from The Conference Board

• Weakest since Feb 2021
• Prior was 104.7 (revised to 103.1)

Details:

• Present situation index 142.9 vs 151.0 prior (revised to 146.8)
• Expectations index 66.4 vs 73.8 prior (revised to 74.0)
• Jobs hard-to-get 14.9 vs 10.9 prior
• % of consumers expect their incomes to increase, from 16.5% last month
• 12-month inflation % vs 5.3% prior

US February CaseShiller 20-city US house price index +7.3% y/y vs +6.7% expected

• February US house price data from CaseShiller and the FHFA

• Prior was 6.6% y/y
• Monthly prices +0.6% vs +0.1% expected
• Prior m/m +0.1%

Data from the FHFA:

• National prices +7.0% vs +6.3% prior

US employment cost Index for Q1 comes in at 1.2% versus 1.0% expected

• Details of US employment cost index for Q1 2021

• Prior quarter 0.9% (was expecting 1.0%)
• Employment cost index for Q1 2024 .2% vs 1.0% expected
• Wages 1.1% versus 0.9% last month
• Benefits 1.1% versus 0.7% last month

YoY the numbers are lower from a year ago but still elevated:

• Overall compensation costs increased by 4.2% for the year ending in March 2024, compared to a 4.8% increase in the previous year (March 2023).
• Wages and salaries rose by 4.4% for the year ending in March 2024, down from a 5.0% increase in the year ending in March 2023.
• Benefit costs increased by 3.7% for the year ending in March 2024, compared to a 4.5% increase in the year ending in March 2023

Goldman Sachs do not see imminent Fed rate cuts, but stocks will rise regardless

• Goldman Sachs forecast a July and November rate cut from the FOMC

Goldman Sachs are still expecting rate cuts from the Federal Open Market Committee (FOMC) in 2024:

• Fed cuts are not imminent
• expect the next few inflation reports to be softer
• and have thus stuck with forecasting a cut in July and then in November

On US stocks:

• equity valuations are constrained by rising bond yields that reflect investor fears of persistent inflation, but even in the face of climbing rates, the S&P 500 has returned 6% this year and is just 4% below its all-time-high
• but stocks can continue to rally if higher-for-longer interest rates are driven by resilient economic growth as opposed to hawkish policy
• two-thirds of companies have beaten EPS estimates with an average surprise of 9%
• flood of generally positive micro earnings results
• “We expect earnings growth will lift the index by 3% to our year-end target of 5200. While our economists expect continued disinflation that will lead to rate cuts later this year, the delayed interest rate cuts should constrain equity valuations”

Fed rate cut forecast moved to July, from June: “Fed has simply run into a brick wall”

The Federal Open Market Committee (FOMC)’s policy decision will be released on Wednesday May 1 at 2 pm US EDT (1800 GMT) with Fed Chair Jerome Powell following up with his press conference at 2:30 pm (1830 GMT).

Comments from Citi come via a Reuters report:

• after data released on Friday showed the PCE index increased at a 2.7% annual pace in March versus 2.5% in February, while the number stripped of volatile food and energy prices was 2.8%, matching February
• “The Fed has simply run into a brick wall,”
• “This is very strong data and it is not data that has given them any confidence they are meaningfully on their way to 2%…The Fed is simply going to have to wait.”

FOMC meet this week: “the most interesting news about this meeting will come on 22 May”

• Preview of the Federal Reserve Federal Open Market Committee (FOMC) meeting

Preview comments from BNP on the FOMC meeting this week, analysts at the Bank says the minutes will be the most interesting news about this meeting!

Some of the key points, in summary:

1. … we’re back in a ‘high rates for longer environment’.

2. we can expect strong insistence on the data dependency of decisions

3. The validity of this approach has been vindicated by recent inflation data. This is not an environment for pre-committing and giving clear guidance about when rate moves will be made and how fast.

4. We should expect that Chairman Powell will say he is confident that inflation will decline (if not, he would trigger a bond market sell-off) but that it will probably take more time.

5. he will say that it’s unlikely that rates would have to be raised as a next move. If inflation turns out to be sticky for longer, keeping current rates should be sufficient.

6. THE question to be asked: does high for longer (because there is no landing at this stage) imply that the risk of a subsequent hard landing will increase?

7. The most interesting news about this meeting will only come on 22 May, with the publication of the minutes. Rarely will they have been so eagerly awaited, the key question being to what extent many or most members of the FOMC would have shifted to the ‘hold rather than cut camp’ and whether the possibility of a hike this year has been discussed.

Canada February GDP +0.2% vs +0.3% expected

• Canada February monthly GDP data
• Prior was +0.6% (revised to +0.5%)
• Services industries +0.2% vs +0.7% prior
• Goods 0.0% vs +0.2% prior
• Manufacturing -0.4% vs +0.9% prior
• March advance GDP 0.0%

Commodities

Gold price pushes down to $2,300 threshold after US employment costs rise

• Gold price falls on improving risk sentiment and an higher-than-expected rise in US employment costs. 
• Positive gains in Asia, strong US earnings and robust European GDP data have all helped boost sentiment. 
• Gold price may be unfolding a Measured Move price pattern lower on the charts.  

Gold continues to weakens just above the $2,300 level during the US session on Tuesday, on the back of a positive market mood denting safe-haven demand for Gold and data from the US showing a rise in employment costs that could have negative implications for inflation and interest rates going forward.  

Oil private survey of inventory shows a large headline crude oil build vs. draw expected

• This is from the privately surveyed oil stock data ahead of official government data tomorrow morning out of the US

• Crude +4.906 million
• Gasoline -1.48 million
• Distillates -2.187 million
• Cushing +1.479 million
• SPR +600,000

Copper Hits 3-Year High: Price Surge Sets Record Month

• Copper price skyrockets with a 14% rise this month, driven by supply risks, increasing demand, bullish market forecasts, economic role, and speculative investment.

The price of copper is lower today with the price down -$0.11 to $4.565, but for the month the price rose 14% which represents the largest move since January 2021.

The price of the front contract traded to the highest level since April 2022 today with a high at $4.6945, before rotating to the downside into month end. The low price for April was down at $4.02 on the first trading day of the month.

Oil catches a strong bid after testing last week’s low. OPEC output falls

• Oil recoups most of its declines

Reuters is out with its latest survey of OPEC output for April. It found that production fell by 99,000 barrels per day to 26.49 million barrels per day.

The declines were led by lower exports from Iran (-50K), Iraq (-40K) and Nigeria (-50K) While Saudi output edged up 20K to 9.0 million barrels per day.

Goldman Sachs expect Brent crude oil to US$84/bbl by December

Goldman Sachs says they expect Brent crude oil to “edge down to US$84/bbl by December”.

• still sees value in long oil positions as a hedge against geopolitical supply shocks and from attractive roll yield perspective

EU News

European equity close: A stumble into the April finishline leading to monthly declines

• Closing changes on the final day of April

Closing changes on the day:

• Stoxx 600 -0.6%
• German DAX –1.0%
• UK FTSE 100 flat
• French CAC –1.0%
• Italy MIB –1.5%
• Spain IBEX -2.2%

Closing changes on the month:

• Stoxx 600 -1.6%
• German DAX -3.0%
• UK FTSE 100 +2.4
• French CAC –2.7%
• Italy MIB –3.1%
• Spain IBEX -2.0%

Eurozone April preliminary CPI +2.4% vs +2.4% y/y expected

• Latest data released by Eurostat – 30 April 2024

• Prior +2.4%
• Core CPI +2.7% vs +2.6% y/y expected
• Prior +2.9%

Eurozone Q1 preliminary GDP +0.3% vs +0.1% q/q expected

• Latest data released by Eurostat – 30 April 2024
• Prior 0.0%

Germany March retail sales +1.8% vs +1.3% m/m expected

• Latest data released by Destatis – 30 April 2024
• Prior -1.9%; revised to -1.7%

Germany Q1 preliminary GDP +0.2% vs +0.1% q/q expected

• Latest data released by Destatis – 30 April 2024
• Prior -0.3%; revised to -0.5%

Germany April unemployment change 10k vs 7k expected

• Latest data released by the Federal Employment Agency – 30 April 2024

• Prior 4k; revised to 6k
• Unemployment rate 5.9% vs 5.9% expected
• Prior 5.9%

France Q1 preliminary GDP +0.2% vs +0.1% q/q expected

• Latest data released by INSEE – 30 April 2024

That’s a slight beat on estimates as the French economy posts moderate growth in Q1. Looking at the breakdown:

• Domestic demand +0.6%
• Inventory changes -0.5%
• Net foreign trade +0.7%

The good news is that household consumption is seen accelerating slightly in the first quarter. That is seen up to +0.4% from +0.2% previously in Q4 last year. Services consumption was seen up 0.7%, roughly similar to the 0.8% reading in the last quarter.

Spain Q1 preliminary GDP +0.7% vs +0.4% q/q expected

• Latest data released by INE – 30 April 2024
• Prior +0.6%

Italy Q1 preliminary GDP +0.3% vs +0.1% q/q expected

• Latest data released by Istat – 30 April 2024
• Prior +0.2%

UK shop prices have risen at their slowest since December 2021

• Encouraging news on the UK inflation front

British Retail Consortium Shop Price Index data for April +0.8% y/y, the slowest pace in more than two years

• prior +1.3%

Prices for non-food goods -0.6% y/y, first negative reading since October 2021

• prior +0.2%

BRC chief executive Helen Dickinson:

• “One year on from the peak, shop price inflation levels are showing signs of normalising, providing relief to households”

ECB’s Holzmann pushes for break after cutting in June

• The ECB hawk wants to wait and see after June
• We have no new information in July, so I would refrain from taking any further steps. I see no reason why should we take two steps in a row
• If developments continue as before, he could imagine one or two reductions in 2024 after June
• Economic momentum in the euro area is “much, much lower” than in the USA
• Says he fears a geopolitical spike in oil prices
• Idea of a dot plot is worth discussing

ECB’s de Cos reaffirms the case for a June rate cut

• Remarks by ECB policymaker, Pablo Hernandez de Cos

• ECB should start cutting rates in June if inflation continues to slow as expected
• But to follow data-dependent approach at each meeting considering that uncertainty is still high

ECB’s Villeroy: Confident of meeting inflation target by end of 2025

• Comments from Villeroy

• ECB will be able to start lowering rates in June

Asia-Pacific-World News

China April Caixin manufacturing PMI 51.4 (expected 51.0)

• Performing better than the official PMI

Caixin S&P Global Manufacturing PMI improves to 51.4 in April:

• expected 51.0, prior 51.1

China April 2024 Official Manufacturing PMI 50.4 (expected 50.3) Services 51.2 (exp 52.2)

• China’s National Bureau of Statistics (NBS) PMIs

Today we have had data for the official PMIs. March manufacturing PMI comes in at 50.4

• expected 50.3, prior 50.8

Services 51.2

• expected 52.2, prior 53.0

Composite 51.7, dragged down by slower growth in both manufacturing and services

• prior 52.7

IMF expects slowing China growth at 4.6% in 2024 and 4.1% in 2025

• International Monetary Fund (IMF) forecasts

The IMF says that Asia Pacific economies are headed for ‘soft landing’

Citing rapid disinflation and resilient growth, although economic expansion is expected to slow over the next two years:

• region remained vulnerable to commodity price shocks and trade disruptions caused by conflicts in the Middle East and Ukraine.

On China, key factors that’ll slow growth include:

• a structural slowdown
• correction in its property sector,
• growth in China projected to slow from 5.2% in 2023, to 4.6% this year and 4.1% in 2025
• near-term risks were “broadly balanced”

Chinese Communist Party set to convene for its third plenary meeting in July

• The decision was set after a regular meeting of China’s Politburo

The meeting by the CPC is set to examine China’s current economic situation and to deepen reform measures. The latter in particular will be a focus point for many. There’s no exact date but just note this down on the calendar for the months ahead. At the same time, the Politburo is out commenting that it will implement prudent monetary policy and proactive fiscal policy.

Australian March 2024 Private Sector Credit +0.3% m/m (expected +0.4%)

Data from the Reserve Bank of Australia

Table below:

Australian March 2024 Retail Sales -0.4% m/m (expected +0.2%)

• +0.8% y/y

• March 2024 retail sales +0.4% m/m
• expected +0.2%, prior +0.3%

CBA moves its forecast for an RBA rate cut to November (from September)

• Commonwealth Bank of Australia is one of Australia’s ‘big four’ banks

• The Australian Q1 24 CPI came in stronger than we forecast. 
• The near-term risk sits with an interest rate hike. But we expect the RBA to be on hold over the next six months given the economy is still contracting on a per capita basis, inflation is forecast to fall further, and the labour market is anticipated to loosen.
• Monetary and fiscal policy are working in tandem. But incredibly strong net overseas immigration has put upward pressure on some components of the CPI basket . This has made the RBA’s task of returning inflation to target more difficult.
• As a consequence, monetary policy is now likely to stay at a restrictive setting for longer.
• We now see a more elongated and conservative easing cycle than previously expected . Our base case sees the cash rate gradually cut from November 2024 to reach 3.10% at end-2025 (a level we believe is just above neutral ).
• The RBA Board may restore its hiking bias at the upcoming May Board meeting. But on balance we expect an ‘on hold’ decision to be accompanied by a neutral bias, in line with the policy decision and Statement from the March Board meeting

New Zealand April business confidence 14.9% (prior 22.9%)

• ANZ New Zealand Business Survey for April 2024

ANZ on the survey results:

• The April ANZ Business Outlook survey showed a clear weakening in activity and profitability indicators but mixed developments regarding inflation pressures. Cost pressure is particularly persistent.

Details:

Japan March Industrial production +3.8% m/m (expected +3.5%)

• Retail sales data also

Japan Industrial Production for March 2024, preliminary

+3.8% m/m, a government spokesman says expansion thanks to the resumption of automobile factories

• expected +3.3%, prior -0.6%

-6.7% y/y

• expected -6.6%, prior -3.9%

Manufacturers expect April output +4.1%m/m and May +4.4% m/m

Japan Retail Sales for March 2024

-1.2% m/m

• expected -0.6%, prior 1.5%

+1.2% y/y, a miss but in expansion for the 25th consecutive month

• expected +2.4%, prior +4.7%

Japan’s Kanda says need to take appropriate actions on FX

Masato Kanda is vice-minister for international affairs at Japan’s Ministry of Finance. He is the official who will instruct the BOJ to intervene, when he judges it necessary, and is often referred to as Japan’s ‘top currency diplomat’.

• no comment on intervention
• Currency impact has bigger impact on import prices now
• Excessive fx moves could impact on daily lives
• Need to take appropriate actions on fx
• Inappropriate to comment on Bank of Japan Governor Ueda’s comment
• Ready to take actions 24 hours a day
• Won’t comment on FX levels

An IMF official says sees Japan as fully committed to flexible exchange rate regime

• IMF sites fundamentals (rate differentials) for weak yen

International Monetary Fund (IMF) official:

• Asian central banks should focus on fundamentals and domestic conditions, rather than fed moves
• We see Japanese authorities fully committed to flexible exchange rate regime
• Yen depreciation reflects interest rate differentials, other factors
• In close touch with Japanese authorities on factors impacting yen

Cryptocurrency News

Bitcoin falls below $60,000 as selling intensifies

• The big figure holds so far

The halving and the launch of Hong Kong ETFs (whic launched today) haven’t been the positive catalysts that bitcoin bulls hoped for, at least not yet. Bitcoin is at the lows of the week, down $2750 to $60,152 today. Spoke about it a few days ago here.

The low so far is $60,053 as bids protect the big figure. If that breaks there could be a flush but there could also be more support down to the April low of $59,590. If those levels go, it would certainly be a bearish technical signal and I could envision sales down to the low $50,000s.

Former Binance CEO Changpeng Zhao sentenced to four months in prison

The prosecution wanted three years after a negotiated guilty plea. Instead he got just four months.

Coinbase lists Solana-based NEON, queues QCAD for listing in the future

• Coinbase added Canadian stablecoin QCAD, which was relaunched in 2023, to its roadmap for a future listing.
• The exchange has listed Solana-based NEON, whose trading will begin on Tuesday.
• NEON’s price increased 6% in the past 24 hours, likely due to the Coinbase listing effect.

Coinbase, one of the largest cryptocurrency exchanges, announced on Monday the listing of Neon (NEON) and its intention to do the same for stablecoin QCAD in the near future. Neon is an SPL token, a fungible token built on the Solana blockchain, while QCAD is a stablecoin indexed to the Canadian Dollar (CAD). 

NEON is the token of a protocol that allows developers to build and deploy Ethereum-native dApps on Solana. The asset added 6% gains in the last 24 hours, likely driven by Coinbase’s listing announcement. 

Another dip in crypto capitalization

Market picture

The crypto market capitalisation decreased by another 1.5% to $2.27 trillion, getting closer and closer to the April lows just above $2.22 trillion. Contrary to expectations, after the halving, the pressure on the market increased, in full accordance with the adage “buy the rumour, sell the news”.

It seems that the strongest altcoins started to give up. Ethereum and Solana are both losing about 4% each in the last 24 hours – higher than most of the top altcoins.

Bitcoin is losing 1.5% to $61.6K, reversing sharply to the downside as active Asian trading begins. This reversal also coincides with downside resistance that has been in place since 8 April.

According to data, crypto fund investments decreased $435M last week after outflows of $206M the week before; this is the third consecutive week of outflows. Bitcoin investments were down $423M, Ethereum investments were down $38M, and Solana investments were up $4M.

The bulk of the outflows (totalling $440M) came from Grayscale’s Bitcoin fund. At the same time, the inflow of funds to other bitcoin-ETFs fell sharply, while a wide range of altcoins saw an inflow of investments, CoinShares noted.

Avalanche set to gain wider reach with its Stripe integration

• Stripe makes another cryptocurrency move by integrating AVAX and Core into its platform.
• Users can purchase AVAX directly on Stripe, along with dapps and NFTs.
• The partnership with Stripe may stir traffic into the Avalanche ecosystem and cause more interest in web3.

Avalanche (AVAX) gained 4.6% on Monday after announcing its strategic partnership with Stripe. The move could spur growth for the AVAX token in the long term.

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