As of Wed, Jan 09, 08:00 Singapore Time Zone UTC+8
USDJPY, +0.03%, $108.75
EURUSD, -0.17%, $1.1457
GBPUSD, -0.33%, $1.2738
USDCAD, -0.40%, $1.3245
AUDUSD, +0.24%, $0.7165
NZDUSD, -0.16%, $0.6744
S&P500, +0.97%, 2,574.41
Nasdaq, +1.08%, 6,897.00
Nikkei Futures, +1.33%, 20,337.5
CURRENCY MARKET WRAP
- The 2-yr Treasury note yield rose seven basis points to 2.59%, and the 10-yr Treasury note yield rose three basis points to 2.72%. The U.S. Dollar Index increased by 0.3% to 95.92.
- Sterling erased all of yesterday’s gains after the UK government lost a vote that would help to prepare for a no-deal Brexit. MPs supported a measure that limits spending on no-deal preparations unless authorized by Parliament. Not only does this reflects May’s weakened power but also makes the government less prepared to leave the European Union with no agreement on March 29.
- A notable mover continues to be the Loonie. Between January 2nd and January 8th, USD/CAD dropped -2.5%, giving up a third of the past 2 months gains. A strong labor market, decline in the Dollar, recovery in risk and rebound in oil prices all played a role in the pair’s steep decline. Later today, the BOC will have their monetary policy announcement. Aside from an interest rate decision, the Bank of Canada will also release their monetary policy report and latest economic projections. This will be followed by a press conference from Governor Poloz and Senior Deputy Governor Wilkins. There will be plenty of opportunities for the central bank to clarify their outlook and pave the way for the next big move in USD/CAD.
STOCK MARKET WRAP
- The S&P 500 rose 0.97% on Tuesday, notching its third straight day of gains and its fifth in the last six sessions. The benchmark index did succumb to some early selling pressure, though, surrendering an early 1.2% gain. However, the wave of improved investor sentiment and the buy-the-dip crowd supported the market. In addition, upbeat reports surrounding U.S.-China trade discussions helped keep the positive sentiment and buying interest intact. A scheduled two-day meeting in Beijing is now slated to extend into a third day of discussions on Wednesday. Buying interest was largely broad-based with 10 of the 11 S&P 500 sectors finishing with gains. The real estate (+1.8%), communication services (+1.6%), industrials (+1.4%), and utilities (+1.3%) groups outperformed the broader market. The S&P 500 financial sector (unch) and the Philadelphia Semiconductor Index (-0.5%) were two notable underperformers on Tuesday. Aflattening yield curve and a profit warning from Samsung Electronics about memory chip demand acted as headwinds for the respective groups. The financial sector, however, managed to claw its way back to its flat line after being down as much as -1.1% intraday.
Japan’s Financial Services Agency (FSA) is considering the regulation of unregistered firms that solicit investments in cryptocurrencies. The development is reportedly a bid to close a loophole in the country’s existing regulatory framework, in which unregistered firms that collect funds in crypto rather than fiat currencies remain in a gray zone. This situation exists because these firms do not explicitly come under the purview of Japan’s Financial Instruments and Exchange Act, which prohibits unregistered companies from collecting investment funds in cash, but fails to mention funds collected in cryptocurrency form. the FSA has intensified its scrutiny of crypto exchanges’ business practices, and fortified the process of risk screening applicants for its mandatory official exchange operating license. Earlier this month, five further crypto exchanges joined the country’s Virtual Currency Exchange Association (JVCEA), a self-regulatory body that was formed in April 2018 in a bid to establish industry-wide investor safety standards. The JVCEA has formally been granted self-regulatory status by the FSA as of October last year.
KodakONE, the developer of a blockchain-based image rights platform licensed by photographic industry giant Kodak has reportedly generated over $1 million in licensing claims for image rights during a limited beta test of its platform. When Kodak first announced its partnership with then-Wenn Digital, the company’s shares surged to a high of $13.25, with onlookers criticizing the move at the time as a bid to cash in on the ICO and blockchain hype. RYDE, together with ICOx Innovations, has overseen the design and development of the KodakONE Platform and its KodakCoin token. The latter is an ERC-20 token, which also uses components of the Stellar blockchain as middleware. The KodakONE platform, meanwhile, uses a hybrid blockchain infrastructure with Ethereum, Stellar and Hyperledger technology. Allegedly, of the $1 million in revenue generated during the PLP beta, KodakONE will pocket around $400,000.
A deep reorganization of the Ethereum Classic (ETC) blockchain, which included double spending, has involved more than $1.1 million worth of crypto. The team first detected eight reorganizations that included double spends, totaling 88,500 ETC (approximately $460,000). Later, the exchange announced that there were 12 additional reorganizations, totaling 219,500 ETC (around $1.1 million). It was not immediately clear whether Coinbase has increased the number of previously detected attacks to 12, or whether there were 20 attacks in total. If they meant the latter, the amount of ETC that has been double spent could equal up to $1.5 million. Coinbase detected the ETC blockchain reorganization on Saturday, Jan. 5, and indicated that it was a 51 percent attack. The U.S. exchange then temporarily halted all interaction with the ETC blockchain. Coinbase states that its customers were not affected by the attack. The major exchange was soon joined by Japan’s bitFlyer, which also claimed that there was an ongoing 51 percent attack with mass reorganization involving more than 100 blocks, but ETC developers denied the reports about a 51 percent attack.