Global Stock Jitters Return - Bitcoin Rises on First ETF Launch
Global stocks waver as higher rates and Covid-19 risks distract from solid earnings. BTC races toward record high ahead of ETF launch.
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- Global stock jitters return as rate hikes and Covid-19 risks distract from strong earnings
- ProShares’ Bitcoin futures ETF set to land for trading at the NYSE today; BTC near $63K
What’s Moving in the Markets?
Stocks globally are going through renewed jitters this week as investors digest a flurry of events and market updates. On the one hand, higher inflation and prospects for rate hikes are weighing on the market sentiment. Additionally, Covid-19 outbreaks continue to threaten the global economic rebound while governments try to accelerate the vaccination campaign.
On the other hand, a strong earnings season is buoying Wall Street and European stocks. Stateside, investment banks last week reported blowout earnings figures for the third quarter. Banking giants such as Goldman Sachs, Morgan Stanley and JPMorgan delivered revenue that surpassed analyst expectations.
Meanwhile, a number of companies in the old continent also reported a jump in revenue and profits for the quarter ended September.
This week, however, equities fell globally after fresh data showed China’s economy has endured a major slowdown in economic growth. In more detail, China’s third-quarter GDP grew 4.9% on an annualized basis. The figure was well below the 5.2% expected pace of growth. Power shortages, property market worries and supply chain bottlenecks were among the reasons for the economic setback.
What’s the Big Picture for Traders?
With that in mind, stocks in Europe are modestly higher on Tuesday, after a choppy trading session on Monday. Across the Atlantic, futures contracts tied to the major averages are aiming for a higher open. More precisely, Dow futures, S&P futures and Nasdaq futures were higher by 0.2% or more ahead of the bell today.
In the broader financial markets, traders and investors have turned wary of placing aggressive bets on most asset classes. As the outlook for the fourth quarter remains uncertain, participants hope the earnings season will continue to lift the market sentiment.
In forex trading, the US dollar is trading lower against most of its peers today. The USD/CAD is approaching a four-month low near 1.2300. Traders may be looking for market opportunities around that area. Also, the GBP/USD pair continues to march higher as buyers are looking to hit a one-month top near 1.3800.
Why is Bitcoin Rallying Today?
The price of bitcoin is now closing in on $63,000 per coin. In other words, just about $2,200, or 3%, from its record high of $64,800. After a slew of positive developments this month for the crypto market, the SEC finally approved the first Bitcoin ETF.
Set to land for trading at the NYSE today, ProShares’ Bitcoin Strategy ETF is another step toward mainstream adoption. The exchange-traded fund will be tracking the price of bitcoin. It will allow investors to buy and hold bitcoin futures, instead of actual bitcoin.
Against this backdrop, the crypto community is optimistic this will greatly expand the market and help legitimize the digital asset market.
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