NOTABLE MOVES
As of Sat, Feb 23, Singapore Time zone UTC+8
USDJPY, +0.00%, $110.69
EURUSD, +0.07%, $1.1343
GBPUSD, +0.02%, $1.3054
USDCAD, -0.78%, $1.3129
AUDUSD, +0.49%, $0.7129
NZDUSD, +0.65%, $0.6845
S&P500, +0.64%, 2,792.67
Nasdaq, +0.79%, 7,090.63
Nikkei Futures, -0.19%, 21,400.0
CURRENCY MARKET WRAP
- There were no prints out of the U.S. on Friday. Risk-Assets were positive as Trade talks yield progress. Investors received several updates from U.S-China trade talks in Washington: (1) The two sides made an agreement on currency, but no specifics were provided; (2) China reportedly committed to purchase $1.2 trillion in U.S. goods; and (3) Trump said he will work out the final points on trade with China’s President Xi most likely in March. Although he also downplayed expectations by saying that they “perhaps could work out the final deal and perhaps not,” they are closer to an agreement than before. Trump even talked about a short term memorandum of understanding (MOU).
- Remarks from Fed officials on Friday provided little surprises and were not market-moving. The Fed speakers maintained a dovish-minded stance on the central bank’s monetary policy and balance sheet normalization efforts.
- U.S. Treasuries closed on a higher note, pushing yields lower across the curve. The 2-yr yield decreased five basis points to 2.48%, and the 10-yr yield decreased three basis points to 2.66%. The U.S. Dollar Index declined -0.1% to 96.55. WTI crude rose 0.5% to $57.25/bbl.
STOCK MARKET WRAP
- The S&P 500 gained 0.64% on Friday in a broad-based rally while U.S.-China trade talks showed signs of progress. Nine of the 11 S&P 500 sectors finished higher with information technology (+1.3%), communication services (+1.1%), and health care (+0.9%) leading the advance. Conversely, the financials (-0.2%) and consumer staples (-0.3%) sectors finished in the red.
- Kraft Heinz (KHC 34.95, -13.23) made headlines, plunging -27.5%, after the company missed earnings expectations, slashed its dividend, and announced that it has received a subpoena from the SEC, inquiring about the company’s accounting practices.
BLOCKCHAIN & CRYPTOCURRENCY NEWS
Crypto Hedge Fund Pantera Capital Seals $130 Million for Third Crypto Venture Fund
Crypto hedge fund Pantera Capital has already sealed $130 million out of a $175 million target for its third crypto venture fund. For Pantera’s debut fund in 2013, the firm had raised $13 million, rising to $25 million for its second. Reportedly, Pantera raised the game for its third offering, saying at the time that the $175 million target was “a function of how fast the space is moving, the talent coming in, the opportunities, and the sizing of rounds.” Pantera executives have previously disclosed that $100 million from 140 investors had already raised by mid-August 2018, according to a CNBC report at the time. The fund reportedly has a decade-long investment period, and offers investors equity in a blockchain company in return for their capital. Pantera has also been developing nontraditional venture funds for crypto investors, such as an investment strategy with input from machine learning and a hedge fund that focuses on initial coin offerings (ICO).
Korea Exchange Official: US Decision on Bitcoin ETF Will Set Tone for Local Crypto Market
An official at South Korea’s sole securities exchange operator, the Korea Exchange (KRX), says the bourse is closely eyeing developments from United States regulators in regard to Bitcoin (BTC) exchange-traded funds (ETFs). The official, reportedly speaking on condition of anonymity, was cited by local English-language daily The Korea Herald on Feb. 20. ETFs are securities that track a basket of assets proportionately represented in the fund’s shares. They are seen by some as a potential development that would herald the widespread adoption of crypto as a regulated and passive investment instrument. The U.S. Securities and Exchange Commission (SEC) has to date either rejected or postponed its decision on a wide range of proposed crypto-related ETFs. the KRX official reported that KRX is extensively discussing the provision of a solid Bitcoin index, which would be “required for the launch of such ETFs when commercialized and integrated into the market because it would eventually concern investor protection issues.”
Texas Cryptocurrency Businesses Agree to Halt Token Offerings After Cease and Desist
Texas’ state securities regulator announced it had reached an agreement with four cryptocurrency companies it accused of selling unregistered securities. The result of a nine-month process, Mintage Mining, BC Holdings and Investments, Social Membership Network Holding, Nui Social and manager Darren Olayan agreed to refrain from offering cryptocurrency tokens to investors. As respondents listed in the order, the entities will also pay an administrative fine of $25,000. The latest order confirms the findings, and requires no further activity to take place until suitable licensing and documentation are collected. The order was signed by all the named respondents. The move constitutes the most recent victory for the SSB in its ongoing clampdown on unregistered securities sales by the emerging cryptocurrency sector.