Yazar: Geoffrey Smith
Investing.com – albeit calm, the rest of the crypto universe is under pressure after Wednesday’s crash. Weekly unemployment claims can ease or increase tensions around inflation and earlier withdrawal of the Fed stimulus. New retail gains can do the same. And the Iranian president claims that there is a development that will allow it to deliver more oil to the world markets.
What you need to know in financial markets on Thursday, May 20th:
1. Crypto is still under pressure
Crypto assets remained under pressure for the second day, but there was no underlying factor similar to the announcement made by Chinese regulators on Wednesday.
Bitcoin was again below $ 40,000 and down 1.3% to $ 39,851. Interest has now returned to whether it can move above the 200-day moving average after falling below it on Wednesday.
The losses in altcoins were even greater as investors apparently used the weakness in Bitcoin to return to more liquid units. DogeCoin fell 14% to 36.17 cents, down another 10% to $ 2,670.
Wednesday’s rout reached its peak early in the US, with many crypto exchanges struggling to process sell orders. Coinbase, the largest crypto exchange operator, experienced slight gains in the pre-market after hitting a new record level with a 6% drop.
2.Unemployment claims, Philly Fed survey
The United States will share the first unemployment applications with the market, which is still not discouraged, with the minutes of the latest meeting.
April fed minutes showed that the policy regulatory committee was slowly shifting to the debate on abatement in bond purchases. The change in tone is still significant, although analysts say it is still not possible for action to take place before the end of the year.
Analysts expect initial jobless claims to drop to a new post-pandemic record of 450,000. It was 473,000 last week. If the forecast is correct, this will further reduce the shock effect of the negative labor market report for April.
In addition, the Philadelphia Fed will share its monthly labor conditions survey.
3.The stock market will open low again
The US stock market will open low on the fourth day amid pressure on the individual investor portfolio overflowing into the crypto space and ongoing concerns that the Fed will withdraw its monetary support soon.
It fell 155 points and fell 0.4%.
Among the stocks that may be in the spotlight are Cisco (NASDAQ 🙂 and Ford (IS :). While Cisco predicted that it would suffer from the global chip shortage, Ford (IS 🙂 said it would have to stop production of its most profitable models again due to the same problems.
4. Consumer power in earnings reports attracts attention
New earnings reports from consumer companies will put inflation risk first in the mind of the market. Walmart so far this week (NYSE :), Home Depot (NYSE :), Lowe’s (NYSE 🙂 and others reported exceptionally strong consumer spending.
Thursday’s show includes Ross Stores, Hormel Foods, Kohls, Ralph Lauren, and Tilray.
Trip.com and L Brands (NYSE 🙂 reports were also stronger than expected after the session on Wednesday.
Many of these reports have benefited from consumers using incentive checks, which are not reproducible this year. Most of the companies released a cautious guide for the remainder of the year, uncertain as to how pent-up demand will hit the market as the economy reopens.
5. Iranian President argued that there is progress in lifting the sanctions
Crude oil prices plummeted after Iranian President Hassan Rouhani claimed that an important agreement framework had been reached to re-enact the UN-backed 2015 nuclear agreement, limiting his nuclear program.
According to media quotes from Rouhani, “they agreed to lift all major sanctions.” He defined the sanctions as oil sales, chemicals, shipping, insurance, and banking industries, including the central bank. It was stated that EU diplomats said “concrete progress” had been made without endorsing Rouhani’s comments. No comments yet by the US.
With the possibility of an increase in Iran’s oil exported to the world market, it decreased by 1.8% to $ 62.23, while it declined to $ 65.24 with a 2% loss.