As of Tue, Jan 29, 08:00 Singapore Time zone UTC+8
USDJPY, -0.14%, $109.26
EURUSD, +0.15%, $1.1430
GBPUSD, -0.39%, $1.3156
USDCAD, +0.30%, $1.3262
AUDUSD, -0.19%, $0.7165
NZDUSD, -0.10%, $0.6832
S&P500, -0.78%, 2,643.85
Nasdaq, -1.11%, 7,085.69
Nikkei Futures, -1.04%, 20,525.0
CURRENCY MARKET WRAP
- There were no notable prints on Monday. This week however, is shaping up to be a busy week of big happenings that will include a swarm of earnings reports, U.S-China trade talks, another vote on the Brexit plan in the UK Parliament, an FOMC meeting and press conference, and the January employment report.
- U.S. Treasuries did not stray too far from their unchanged marks throughout the day despite the slide in equities. The lack of a flight-to-safety bid was indicative of a stock market succumbing to profit taking rather than panic selling. The 2-yr yield decreased two basis points to 2.58%, and the 10-yr yield decreased one basis point to 2.74%. The U.S. Dollar Index lost -0.10% to 95.75.
STOCK MARKET WRAP
- The S&P 500 declined as much as 1.5% on Monday, as warnings from Caterpillar (CAT 124.37, -12.49, -9.1%) and NVIDIA (NVDA 138.01, -22.14, -13.8%) catalyzed early selling efforts. The benchmark index, however, ended the day down -0.78% and finished near its best levels of the session. The S&P 500 information technology (-1.4%), communication services (-1.2%), and health care (-1.1%) sectors underperformed the broader market. Conversely, the real estate (+1.0%) and consumer staples (+0.5%) sectors were the lone groups to finish in the green. Specifically, Caterpillar came up well short of Q4 earnings estimates and issued fiscal 2019 earnings guidance below expectations. NVIDIA lowered its fiscal Q4 revenue guidance below consensus, citing weaker-than-expected sales in segments like gaming and datacenter.
- While buyers were largely absent during the morning trade, they returned in the afternoon session and helped the major indices pare their losses in what has become a familiar buy-the-dip trade.
BLOCKCHAIN & CRYPTOCURRENCY NEWS
The Intercontinental Exchange (ICE) has partnered with major global blockchain firm Blockstream to launch its Cryptocurrency Data Feed product. Founded in 2000 in the United States, the Intercontinental Exchange is a global company that owns exchanges for financial commodity markets and operates 23 global exchanges, including the New York Stock Exchange (NYSE). According to the announcement, ICE’s new crypto data service enables real-time and historical data for more than 60 cryptocurrencies from major trading markets and exchanges worldwide. The new partnership intends to provide global investors with a comprehensive tool to monitor data for the most actively and widely traded cryptocurrencies. The new service is backed by ICE’s Secure Financial Transaction Infrastructure (SFTI) tool, which claims to eliminate downtime for investors and enable immediate notifications in case of an emergency.
Belarusbank, the largest bank in Belarus, is considering setting up a crypto exchange. According to the bank’s chairman of the board Viktor Ananich, efforts are now being made to explore the possibility of setting up a cryptocurrency exchange. Ananich claimed that digitization is one of the most important focuses of Belarusbank in 2019, noting that the bank is also working with mobile carriers, aiming to expand its services. The chairman emphasized that the banking sector should keep up with the digital industry, as the space is evolving very fast. Owned by the State Property Committee of Belarus, Belarusbank is the leading banking institution in the country, according to its volume of equity, assets, loans and deposits. Belarusbank was reportedly estimated to have $13.51 billion in operating assets in 2017. On Jan. 15, reportedly the first crypto trading platform that allows users to purchase tokenized traditional assets such as shares and gold with cryptocurrencies was launched in Belarus. The project is backed by two firms, Larnabel Ventures and VP Capital. By Jan. 16, the platform reportedly issued 150 various types of tokens, while the company expects to eventually list 10,000 types of assets.
Four major South Korean cryptocurrency exchanges have reportedly joined their forces in order to combat money laundering. Bithumb, Upbit, Korbit and Coinone have established a hotline where users can share information on any unusual trading or payments that could possibly be related to crimes, such as pyramid schemes. According to an anonymous representative of one of the operators, the exchanges will thereby be able to instantly check any suspicious transactions and immediately block the related accounts.