Bitcoin slides below $30,000 level for the first time in a month
A selloff in Bitcoin accelerated Tuesday, pushing it below $30,000 for the first time in about a month.
The largest digital coin fell 3.6% to $29,667 as of 7 a.m. in New York. Other virtual currencies also retreated, including second-ranked Ether. The Bloomberg Galaxy Crypto Index was down about 4%.
Some traders had viewed $30,000 as a key support that might open the way to more losses if breached. Further big declines from here could rattle the cryptocurrency market and even exacerbate a wider flight from risk assets such as stocks. Global equities are falling due to fears of slowing economic growth and the relentless spread of the delta variant of Covid-19.
“We’re going to need to form another base first before resuming another bull trend,” said Vijay Ayyar, head of Asia Pacific with cryptocurrency exchange Luno in Singapore. “We are going to be ranging between $20,000 and $40,000 for the rest of the year.”
Narratives that had propelled bitcoin to a mid-April record of almost $65,000 are now being questioned. Some had argued the digital asset could act as a hedge against inflation due to its limited supply. But bitcoin’s 2% advance this year lags behind the S&P 500’s 13% advance.
“Investors who are allocating to crypto know that volatility is going to be part of it,” Grayscale Investments CEO Michael Sonnenshein said in an interview on Bloomberg TV.
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Bitcoin has been hit by many setbacks of late, including China’s regulatory crackdown — partly over concerns about high energy consumption — and progress in central bank digital-currency projects that could squeeze private coins.
The creator of meme-token Dogecoin recently lambasted crypto as basically a sham, and the appetite for speculation is generally in retreat.
Officials around the world are also intensifying scrutiny of cryptocurrencies. On Monday, Treasury Secretary Janet Yellen pushed top U.S. financial regulators to accelerate their consideration of new rules to police so-called stablecoins.
Published : July 21, 2021
By : Syndication Washington Post, Bloomberg · Eric Lam
The Stock Exchange of Thailand (SET) Index closed at 1,538.86 on Tuesday, down 17.15 points or 1.10 per cent. Transactions totalled THB92.95 billion with an index high of 1,552.38 and a low of 1,530.62.
The SET was down more than 1 per cent for the second day running, after dropping 1.17 per cent yesterday.
In the morning session, Krungsri Securities predicted the index on Tuesday would fall to between 1,545 and 1,550 points due to concern that the Covid-19 Delta outbreak will hit global economic recovery.
It added that the oil price was also falling sharply and foreign funds were flowing out of the Thai stock market.
“However, mass buy-ups of shares that have gained positive sentiment from expectation of improved second-quarter turnover should help the index to rebound,” Krungsri Securities said.
The 10 stocks with the highest trade value today were PTT, SNNP, KBANK, GUNKUL, AOT, ADVANC, BANPU, IVL, GPSC and PTTGC.
Other Asian indices were down with one exception:
Japan’s Nikkei Index closed at 27,388.16, down 264.58 points or 0.96 per cent.
China’s Shanghai SE Composite Index closed at 3,536.79, down 2.33 points or 0.066 per cent, while the Shenzhen SE Component Index closed at 15,011.35, up 18.45 points or 0.12 per cent.
Hong Kong’s Hang Seng Index closed at 27,259.25, down 230.53 points or 0.84 per cent.
South Korea’s KOSPI closed at 3,232.70, down 11.34 points or 0.35 per cent.
Taiwan’s TAIEX closed at 17,528.74, down 260.51 points or 1.46 per cent.
Surviving the pandemic may be tough for many Thai hotels, survey shows
Most hotel operators in Thailand only have enough funds to last them for less than three months, a survey conducted by the Thai Hotels Association (THA) showed.
THA president and hotelier Marisa Sukosol Nunbhakdi said the survey – in cooperation with the Bank of Thailand – was conducted between June 14 and 27 on more than 200 hotel operators.
The survey learned that 58 per cent of hotel operators were 20 per cent less liquid than the previous month, 68 per cent had funds to last them less than three months, while 26 per cent will barely be able to pull through one month, she said.
Marisa added that 19.5 per cent of the hotels had to shut down temporarily, 41 per cent were open, while 39.5 per cent were partially open.
She said most of the hotels that are temporarily shuttered are in the South, and 75 per cent of them expect to open again for business in the fourth quarter of the year.
“The Covid-19 outbreak is still hurting hotels even though the occupancy rate in June had risen 10 per cent from 6 per cent in May,” she said.
Marisa said she expected the occupancy rate in July to rise to 12 per cent, especially in the South. She added that 63 per cent of hotel staff in the South have got their Covid-19 jabs in line with the Phuket Sandbox scheme, which kicked off on July 1.
Fallout of Covid variant on global economy to drag SET down
The Stock Exchange of Thailand (SET) Index fell by 5.74 points, or 0.37 per cent, to 1,550.27 on Tuesday morning.
The SET Index closed at 1,556.01 on Monday, down 18.36 points or 1.17 per cent. Transactions totalled THB66.72 billion with an index high of 1,563.88 and a low of 1,551.79.
Krungsri Securities predicted the index on Tuesday would fall further to between 1,545 and 1,550 points due to concerns that the Covid-19 Delta variant outbreak would hit global economic recovery.
It added that the negative sentiment had also caused oil price to fall sharply and foreign funds to flow out of the stock market.
“However, mass buy-ups of shares that have gained positive sentiment, such as stocks whose second-quarter business turnover is expected to improve, would help the index to rebound,” Krungsri Securities said.
It recommended that investors buy:
▪︎ HANA, KCE, TU, CPF, ASIAN and EPG, which benefit from weakening baht.
▪︎ BCH, CHG, BDMS, HMPRO, GLOBAL, DOHOME, BEM, CKP, CBG, OSP, ICHI, GPSC, BEC, GUNKUL, JWD, WICE, SONIC and NER, whose second-quarter business turnover is expected to improve.
The price of gold in Thailand rose by THB150 per baht weight on Tuesday morning.
The Gold Traders Association report at 9.28am showed buying price of a gold bar at THB28,100 per baht weight and selling price at THB28,200, while gold ornaments were priced at THB27,591.20 and THB28,700, respectively.
At close on Monday, buying price of a gold bar was THB27,950 per baht weight and selling price THB28,050, while gold ornaments were priced at THB27,439.60 and THB28,550, respectively.
Spot gold price on Tuesday was US$1,819 (THB59,665) per ounce after Comex gold on Monday dropped by $5.8 to $1,809.2 per ounce due to the strengthening dollar and uncertainty over the Covid-19 outbreak worldwide, especially the Delta variant.
Hong Kong gold price, meanwhile, rose by HK$100 to $16,810 (THB70,958) per tael, the Chinese Gold and Silver Exchange Society reported.
Stocks slump as virus jitters fuel rush into bonds
Stocks slumped around the world as investors rushed into haven assets after the delta coronavirus variant cast a pall over the economic recovery, while tension between the U.S. and China escalated.
In a reversal of the reopening trade that has powered this year’s equity rally, cyclical companies bore the brunt of the rout on Monday. Commodity, financial and industrial shares led losses in the S&P 500, which fell the most in two months. Small caps extended a slide from March’s peak to nearly 10%. After recently plunging to pre-pandemic levels, the Cboe Volatility Index, or VIX, soared. European stocks had their biggest drop since December, following a sell-off in Asia.
With the risk-off sentiment spreading across global markets, long-term Treasury rates spiraled to their lowest since February — dragging the yield curve flatter. Ten-year yields tumbled as much 12 basis points to as little as 1.17%. The dollar rose alongside the yen and the Swiss franc. Despite the classic safety trade, gold retreated. Oil sank after OPEC+ agreed to boost supply into 2022. Meantime, Bitcoin’s slide pushed the world’s largest digital currency closer to $30,000.
The resurgence of covid-19 is unsettling global investors, who are considering whether new lockdown restrictions will sap the economic rebound and reverse an equity rally that had driven stocks to a record. Matt Miskin, co-chief investment strategist at John Hancock Investment Management, told Bloomberg Television that the move to “higher-quality assets” such as Treasuries is justified. Americans should avoid traveling to the U.K. because of a surge in that nation’s spread of covid-19, U.S. government and health officials warned.
“Risk aversion is firmly in place as the Delta covid variant spread is triggering a flight to safety,” wrote Edward Moya, senior market analyst at Oanda. “Equities were ripe for a pullback given Wall Street was in agreement that this is ‘as good as it gets’ for peak earnings, economic growth, monetary stimulus. It is hard to hold risky assets over the short-term now.”
Geopolitical jitters also resurfaced on Monday after the U.S., the U.K. and their allies said the Chinese government has been the mastermind behind a series of malicious ransomware, data theft and cyberespionage attacks against public and private entities — including the sprawling Microsoft Exchange hack earlier this year.
Here are some of the main market moves:
Stocks
– The S&P 500 fell 1.6% as of 4 p.m. EDT
– The Nasdaq 100 fell 0.9%
– The Dow Jones industrial average fell 2.1%
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– The MSCI World index fell 1.7%
Currencies
– The Bloomberg Dollar Spot Index rose 0.3%
– The euro was little changed at $1.1797
– The British pound fell 0.7% to $1.3668
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– The Japanese yen rose 0.5% to 109.50 per dollar
Bonds
– The yield on 10-year Treasurys declined 10 basis points to 1.19%
– Germany’s 10-year yield declined three basis points to -0.39%
– Britain’s 10-year yield declined seven basis points to 0.56%
Commodities
– West Texas Intermediate crude fell 7.6% to $66.33 a barrel
– Gold futures fell 0.1% to $1,812.30 an ounce
Published : July 20, 2021
By : Syndication Washington Post, Bloomberg · Rita Nazareth, Vildana Hajric
Biden says Fed should take whatever steps it deems necessary to respond to inflation
WASHINGTON – President Joe Biden on Monday said that he made clear to Federal Reserve Chair Jerome H. Powell that the central bank should take any steps deemed to be needed to combat rising inflation and support the economic recovery.
“As I made clear to Chairman Powell of the Federal Reserve when we met recently, the Fed is independent,” Biden said during a speech about the economy. “It should take whatever steps it deems necessary to support a strong, durable economic recovery.”
Monday’s remarks revealed direct communication between Biden and Powell about inflation as prices increase faster than many policymakers and economists projected.
The administration has continuously said over the past few months that price hikes will be temporary. But new coronavirus cases, and in particular the highly transmissible delta variant, loom over that picture and complicate Biden’s report card for booming economic growth.
Fed officials have said they have no plans to raise interest rates anytime soon to respond to inflation, saying prices will simmer back down as the economy heals. The White House and leaders at the Fed share the view that inflation is a feature of an economy clawing back from the pandemic recession.
Still, the inflation readings are crucial for how policymakers – in the White House and at the Fed – chart the economic recovery. Biden on Monday used the price increases to advocate for his infrastructure package, saying the investments would create a more resilient supply chain for businesses and workers.
The Fed, for its part, must weigh when and how to pull back its economic supports. If central bankers suddenly decide inflation has climbed dangerously high, they risk causing another recession if they raise rates or trim asset purchases too abruptly.
The Fed stakes much of its reputation on a separation from politics, and Biden specifically pointed to the Fed’s independence in his remarks Monday. While the Biden administration is also paying close attention to rising prices and other threats to the recovery, tackling inflation by raising interest rates rests squarely with the Fed.
Biden and Powell have met once since Biden took office. The exchange about inflation took place during that meeting, which also included other financial regulators, on June 21.
“I want to be clear. My administration understands that if we were to ever experience unchecked inflation over the long term, that would pose a real challenge to our economy,” Biden said Monday. “So while we’re confident that isn’t what we’re seeing today, we’re going to remain vigilant about any response that is needed.”
Fed leaders often point to a few products to illustrate why they think inflation is temporary. Lumber prices soared earlier this year as demand for new houses and construction projects overwhelmed sawmills, which had low inventories and thinned-out crews. As production rebounded, lumber prices fell dramatically.
Meanwhile, used-car prices are still skyrocketing. Industry experts say that is because a global microchip shortage has hamstrung supply chains for new cars. That trickles down to the used-car market, which relies heavily on trade-ins and auto parts. The expectation among many economists is that once factories can ramp back up, supplies of chips and new cars will flow through the auto market and eventually bring prices for used cars down.
But at the same time, prices are on a steep climb. Prices rose 5.4 percent in June compared with a year ago, marking the largest spike since 2008. And some categories could prove thornier than others. For example, some economists are concerned that if rental prices continue to rise, they might not come back down.
The uptick has taken on political dimensions as Republicans call for the Fed to pull back on its monetary supports and stop the economy from overheating. Democrats say that prices will eventually cool and that, in the meantime, more people will be able to get jobs, as long as the Fed doesn’t pump the brakes.
Powell has said he does not expect a prolonged period of runaway inflation. But he has also said central bankers have to be “humble about what we understand” about the data at this point in the recovery.
“We’re experiencing a big uptick in inflation, bigger than many expected, bigger certainly than I expected, and we’re trying to understand whether it’s something that will pass through fairly quickly or whether, in fact, we need to act,” Powell told the Senate Banking Committee last week.
Inflation was not a worry when the pandemic shut down much of the economy last spring and yanked prices down. On Monday, the National Bureau of Economic Research said that the coronavirus recession began in February 2020 and ended in April 2020. The two-month contraction was the shortest on record, yet the severity of the crisis, and the ongoing pandemic, has led to a choppy and uneven recovery.
SET down more than 1% as Asian stocks sapped by global surge of Delta
The Stock Exchange of Thailand (SET) Index closed at 1,556.01 on Monday, down 18.36 points or 1.17 per cent. Transactions totalled THB66.72 billion with an index high of 1,563.88 and a low of 1,551.79.
In the morning session, Krungsri Securities forecast the index on Monday would fall to between 1,550 and 1,560 points due to concern that outbreaks of Covid-19’s Delta variant in the US and Europe will hit global economic recovery.
It added that the surge in domestic Covid-19 cases plus volatility in foreign fund flows would pressure the index.
The 10 stocks with the highest trade value today were GUNKUL, GPSC, PTT, BANPU, AOT, RCL, KBANK, KCE, KTC and PTTGC.
Other Asian indices were down, with one exception:
Japan’s Nikkei Index closed at 27,652.74, down 350.34 points or 1.25 per cent.
China’s Shanghai SE Composite Index closed at 3,539.12, down 0.18 points or 0.0051 per cent, while the Shenzhen SE Component Index closed at 14,992.90, up 20.69 points or 0.14 per cent.
Hong Kong’s Hang Seng Index closed at 27,489.78, down 514.90 points or 1.84 per cent.
South Korea’s KOSPI closed at 3,244.04, down 32.87 points or 1.00 per cent.
Taiwan’s TAIEX closed at 17,789.25, down 106.00 points or 0.59 per cent.
SET to face downward pressure from rising Covid cases, funds outflow
The Stock Exchange of Thailand (SET) Index fell by 19.17 points, or 1.22 per cent, to 1,555.20 on Monday morning.
The SET Index closed at 1,574.37 on Friday, up 2.36 points or 0.15 per cent. Transactions totalled THB80.44 billion with an index high of 1,575.66 and a low of 1,567.17.
Krungsri Securities predicted the index on Monday would fall to between 1,550 and 1,560 points due to uncertainty over the outbreak of the Covid-19 delta variant in the US and Europe that may affect economic recovery.
It forecast a rise in domestic Covid-19 cases and expected volatility in foreign funds flow to pressure the index.
Daily infections reached a new high of 11,784 on Monday and 81 deaths. It is the third consecutive day the country has recorded over 10,000 cases.
It recommended that investors buy:
▪︎ HANA, KCE, TU, CPF, ASIAN and EPG, which benefit from the weakening baht.
▪︎ BCH, CHG, BDMS, HMPRO, GLOBAL, DOHOME, BEM, CKP, CBG, OSP, ICHI, GPSC, BEC, GUNKUL, JWD, WICE, SONIC and NER, whose second-quarter business turnover is expected to improve.
Gold continues upward trend of the past four weeks
The price of gold in Thailand rose by THB50 per baht weight on Monday morning.
The Gold Traders Association report at 9.27am showed the buying price of a gold bar at THB28,100 per baht weight and selling price at THB28,200, while gold ornaments were priced at THB27,591.20 and THB28,700, respectively.
At close on Saturday, the buying price of a gold bar was THB28,050 per baht weight and selling price THB28,150, while gold ornaments were priced at THB27,545.72 and THB28,650, respectively.
The price rose by THB350 per baht weight last week, gaining for four weeks in a row.
Spot gold price on Monday was US$1,814 (THB59,647) per ounce after Comex gold on Friday dropped by $14 to $1,815 per ounce due to the strengthening dollar, rising US bond yield and improvement in US retail sales.
Hong Kong gold price, meanwhile, dropped by HK$80 to $16,810 (THB71,155) per tael, the Chinese Gold and Silver Exchange Society reported.
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