U.S. Advance GDP q/q at 3.5% vs expected 3.3%. Advance GDP Price Index q/q at 1.7% vs expected 2.1%. Revised UoM Consumer Sentiment at 98.6 vs expected 98.9. U.S. Treasuries prices rose, as the market turmoil drove some safe-haven positioning. The 2-yr yield decreased five basis points to 2.81%, and the 10-yr yield dropped six basis points to 3.08%. USDJPY down -0.45%, $111.91.
Euro up 0.24%, $1.1403. Over the weekend, UK’s Chancellor Philip Hammond warned that a no-deal Brexit will jeopardise budget plans, prolonging UK’S austerity and that the government will need a new emergency one. Sterling up 0.12%, $1.2833. USDCAD up 0.28%, $1.3107.
S&P 500 down -1.73%, 2,658.69. Nasdaq down -2.34%, 6,852.40. Nikkei down -0.40%, 21,184.60.
A stronger-than-expected advance Q3 GDP reading (+3.5% actual vs +3.3% consensus) took a backseat in Friday’s trading action to Amazon lowering its fourth quarter revenue guidance and Alphabet missing third quarter revenue expectations. Facebook (FB 145.37, -5.58, -3.7%), Netflix (NFLX 299.83, -13.04, -4.2%), and Apple (AAPL 216.30, -3.50, -1.6%) also back-pedalled from notable gains in the previous session, adding pressure to the communication services and information technology (-1.9%) sectors. In other earnings news, Mohawk Industries (MHK 115.03, -36.04, -23.9%), Western Digital (WDC 44.19, -9.82, -18.2%), and Colgate-Palmolive (CL 59.58, -4.24, -6.6%) contributed to angst over future earnings growth. Flooring manufacturing company Mohawk cited weakening demand, inflation, and pricing pressures for its lower outlook; Western Digital said customers are being more conservative, resulting in softening demand; and Colgate-Palmolive encountered profit margin pressures from higher raw material and packaging material costs.
Conversely, Dow component Intel (INTC 45.69, +1.38) easily beat consensus revenue and EPS estimates for the third quarter and issued fourth quarter guidance that exceeded analysts’ average estimates. Shares of the chip maker finished 3.1% higher.
BLOCKCHAIN & CRYPTOCURRENCY NEWS
Ukraine: Economic Development and Trade Ministry Launches State Policy to Legalize Crypto
The Economic Development and Trade Ministry of Ukraine has initiated a “state policy” for the classification and legalization of crypto-related activities. The Ministry has issued an official press release stating that its purpose is to “create understandable conditions for conducting activities in the field of virtual assets and virtual currencies,” and to usher in “adoption of the concept of a state policy” for crypto. It has proposed establishing legal definitions for key terms, including “virtual currency” (“cryptocurrency,”) “virtual assets,” Initial Coin (or Token) Offerings (ICOs or ITOs), cryptocurrency mining, “smart contracts,” and “tokens.” The concept is expected to be implemented in two stages, and will be completed in 2021.
World’s Largest Crypto Exchange OKEx to Delist 50+ Trading Pairs Due to ‘Weak’ Performance
Major Hong Kong-based cryptocurrency exchange OKEx will delist over 50 trading pairs with weak performance. The exchange will halt the trading of a swathe of pairs that they cite as having weak liquidity and trading volume at 6:00 am Oct. 31, 2018 CET. The exchange warned users that they should cancel their orders of the affected pairs from the platform. Earlier this month, OKEx announced the listings of four stablecoins at once – TrueUSD (TUSD), USD Coin (USDC), Gemini Dollar (GUSD), and Paxos Standard Token (PAX). Founded in 2014, OKEx is at press time the world’s largest cryptocurrency exchange in terms of adjusted trading volume, seeing around $402.5 million in trades over the past 24 hours.
VeChain Signs MoU for Blockchain Development with Cyprus
Singapore-based blockchain platform VeChain Foundation, U.S. blockchain startup CREAM, and the national investment partner of the Republic of Cyprus, Invest Cyprus, have signed a Memorandum of Understanding (MoU). The MoU is focused on establishing a framework in the field of blockchain technologies and related use cases. Per the MoU, the parties will work on a number of national level investment strategies, which involve blockchain-powered economies and promote blockchain technology, particularly in financial services. The suggested reforms will purportedly comply with regulatory procedures such as Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements, E.U. law, and other regulations.
