As of Sat, Jan 12, 08:00 Singapore Time zone UTC+8
USDJPY, +0.12%, $108.55
EURUSD, -0.27%, $1.1469
GBPUSD, +0.74%, $1.2843
USDCAD, +0.23%, $1.3266
AUDUSD, +0.42%, $0.7216
NZDUSD, +0,78%, $0.6833
S&P500, -0.01%, 2,596.26.
Nasdaq, -0.21%, 6,971.48
Nikkei Futures, +1.04%, 20,320.0
CURRENCY MARKET WRAP
- U.S. CPI m/m at -0.1% vs expected -0.1%. Core CPI m/m at 0.2% vs expected 0.2%. The key takeaway from the report is that it supports the Fed’s new belief that it can be patient with its policy approach given that the core inflation trend is stable around the longer-run target at a time when data locally and abroad is revealing some softening in economic activity. U.S. Treasuries closed out the week on a higher note, pushing the 2-yr yield down two basis points to 2.55% and the 10-yr yield down three basis points to 2.70% in the wake of a market-friendly consumer inflation report. The U.S. Dollar Index gained 0.10% to 95.67.
- Sterling was one of the best performers. It received a lift on reports that the UK could delay its March 29th exit from the European Union, though there’s a very good chance that PM May will lose this week’s key Brexit vote. Most MPs are expected to vote no to the withdrawal agreement that she set out with EU and only reason this is seen as good news is because many believe that they will need to drop the deadline altogether if Parliament rejects the agreement. As for Plan B, May could push for a second vote, pro-EU campaigners could push hard for a second referendum or the UK could begin the process of leaving the EU with no agreement.
STOCK MARKET WRAP
- The S&P 500 (-0.01%) finished just a hair below its flat line on Friday. The benchmark index never traded in positive territory but did close at its session high. It also finished the week with a gain of 2.5%. The S&P 500 sectors also finished mixed with energy (-0.6%), utilities (-0.4%), and materials (-0.4%) weighing on the broader market. Conversely, the consumer staples (+0.3%) and health care (+0.3%) sectors finished atop the standings. General Motors (GM 37.18, +2.45) for its part jumped 7.1% after it increased its adjusted fiscal 2018 and 2019 earnings above consensus. Its strength, however, was not enough to lift the consumer discretionary space (unch).
Reportedly, tZERO, the security token exchange subsidiary of e-commerce retail giant Overstock, has started releasing control of its tokens. According to tZERO CEO Saum Noursalehi’s letter, investors now have the option of choosing where to hold their security tokens, either by creating a brokerage account with Dinosaur Financial Group, a tZERO partner and broker dealer, or holding them in a person wallet with a two-step verification system. tZERO investors should also “look out for another tZERO update regarding the commencement of security token trading,” as the time-frame for the live trading of the security token on its platform has not yet been clarified. In early January of this year, tZero received a patent application for a crypto integration platform for trading digital assets, outlining a system that would be able to receive orders to trade securities, tokens, digital shares, cash equivalents and digital assets from broker-dealers and then translate the orders into crypto orders on a digital exchange.
Ethereum development studio ConsenSys has participated in a $2 million seed funding round for Iceland-based blockchain startup Monerium. The round was led by early-stage venture capital firm Crowberry Capital and included participation from private investment firm Hof Holdings, both also based in Iceland. The round was led by early-stage venture capital firm Crowberry Capital and included participation from private investment firm Hof Holdings, both also based in Iceland. Monerium plans to issue “asset-backed, redeemable and regulated e-money” over blockchains once a licensed institution, saying its products would make blockchains “more relevant and useful” to financial institutions and enterprises. According to Andrew Keys, co-founder of ConsenSys Capital, his firm is “dedicated to supporting companies building the infrastructure needed for a more decentralized and self-sovereign future.” In November, ConsenSys led a $2.1 million seed round for AZTEC, a startup working to make ethereum transactions private and thereby encourage financial institutions to use the second-largest blockchain.
NASA – the National Aeronautics and Space Administration – is examining blockchain technology as a means to ensure the privacy and security of aircraft flight data. Ronald Reisman, an aero-computer engineer at NASA Ames Research Center, published a paper on Monday, suggesting that blockchain networks and smart contracts can help mitigate some security issues. Starting Jan. 1, 2020, the U.S. has been mandated by the Federal Aviation Administration (FAA) to use a new surveillance system – Automatic Dependent Surveillance Broadcast (ADS-B) – which will publicly broadcast aircrafts’ identity, position and other information.