Cryptocurrencies have gone into free fall overnight with Bitcoin diving 10.2% and falling below $40,000 for the first time since February, while Ethereum has plunged 19.1% after China banned its financial services companies (particularly banks, brokerages and payment providers) from offering cryptocurrency savings or trading services.
US stock market losses are accelerating this morning. NASDAQ futures are down 1.5%, while Dow futures are down 0.9%, adding to yesterday’s respective index declines of 0.5% and 0.8%. Commodities are also under significant selling pressure today with WTI crude oil down 2.1%, natural gas down 1.0%, copper down 2.8% and silver down 2.5%.
US retailer earnings week continues with stronger than expected results from Lowes ($3.21 vs street $2.62, same store sales 24.4% vs street 20.3%), and Target ($3.69 vs street $2.25). Video game producer Take Two also beat expectations ($0.94 vs street $0.67).
Inflation remains a notable topic for today. Canada reported a higher than expected increase in consumer prices (3.4% vs street 3.2% and previous 2.2%). This afternoon, minutes of the last US FOMC meeting are expected which investors may look to for insights into their inflation related discussions. Tonight the Peoples Bank of China is meeting which may shed some light on the direction of monetary policy and economic conditions in the Middle Kingdom.
SIA Wealth In The Media
Chief Market Strategist Colin Cieszynski recently appeared on BNN Bloomberg where he discussed commodity prices, inflation, relative strength and tactical rotation within equity markets.