Market

Markets ‘need to chill’ because the Fed may not be done with rate cuts, says economist

Markets ‘need to chill’ because the Fed may not be done with rate cuts, says economist

Market
The underlying message by the Federal Reserve — after it cut interest rates on Wednesday — may not be as hawkish as many investors had interpreted it to be, according to the chief economist of Institute of International Finance. Stocks in the U.S. fell after Fed Chairman Jerome Powell suggested policymakers were not embarking on a new cycle of rate cutting. The 25 basis points cut on Wednesday marked the central bank’s first policy easing in more than a decade. But Robin Brooks, managing director and chief economist of IIF, suggested that the central bank may not be done with cutting rates. “I think the midcycle adjustment language that Chairman Powell used is important, ” Brooks pointed out. “The midcycle adjustments that we saw in ’95 and ’98 were 75 basis points each — so three
Analyst say that China will not Weaponize its Treasury Holdings in the US-China Trade War

Analyst say that China will not Weaponize its Treasury Holdings in the US-China Trade War

Market
The trade war between the United States and China is still ongoing although it is closer to a resolution now than it was at the beginning of the year. Each country is looking for an agreement that will be beneficial to its citizens while maintaining the delegate balance of the global economy. According to Richard McGregor, a senior analyst at the Lowy Institute, the Chinese government isn't going to sell off its U.S Treasury holdings in a bid to win the war. He noted that they have other weapons which they will deploy. China Will Not Sell-off Its US Treasury Holdings When the trade war started intensifying, China increased the pace at which it cut down its United States debt holdings. The rate at which the debt holdings were cut off is the fastest in the past two years. Following the...
Bitcoin’s Price Rally Cut Short as Jerome Powell Raises Concerns about Facebook’s Libra

Bitcoin’s Price Rally Cut Short as Jerome Powell Raises Concerns about Facebook’s Libra

Market
Bitcoin has been on a bullish rally since the beginning of the year. After the Facebook cryptocurrency white paper was released, however, investors doubled down on buying Bitcoin allowing the cryptocurrency to retest last year’s highs. Even if the price of BTC corrected after that, it surged again a few days ago, breaking the resistance at $13,000, and $13,500 as it set sights on the $14,000 level. Unfortunately, Bitcoin’s rally was cut short after Jerome Powell expressed concerns about the Facebook cryptocurrency. This led to a panic sell-off and a drop in the price of BTC. Jerome Powell Talks About Facebook’s Libra, Bitcoin’s Price Rally Is Cut Short There have been many debates about the Facebook cryptocurrency ever since the social media giant announced that it was diving into th
United States Stock Takes a Dip as Treasures and Futures Decline

United States Stock Takes a Dip as Treasures and Futures Decline

Market
Last week, the United States stock market enjoyed a rally with most assets recording higher highs. However, things were different this Monday as stock futures in the United States and Europe fell. At the same time, Asian assets took a hit. The only good news was that the USD grew stronger for the third day in a trading row.  The United States And Global Stock Market Takes A Hit On Monday The downtrend started after BASF SE sent a public notice of a slash in its 2019 price forecast. The company cited trade conflicts as the reason for the expected drop. As soon as the announcement was made, auto and chemical manufacturers started to experience a decline in stocks in the Europe 600 index. As this happened, the S&P 500 also experienced a decline for the third time in a row. The poor pe
Tesla Releases Quarterly Deliveries, Stock Surges Significantly But Remains Far From Annual Goal

Tesla Releases Quarterly Deliveries, Stock Surges Significantly But Remains Far From Annual Goal

Market
Electric car manufacturer, Tesla, has been having difficulties reaching its goals for a while now. The company's stock remained in red in Q1 but it managed to surge right after the company announced its quarterly deliveries. According to MarketWatch, the company delivered about 95,200 vehicles in the second quarter of the year as reported on Tuesday. Tesla Stock Surges After Release Of Q2 Report, The Tesla shares were down by over 30% this year due to the poor performance of the company in Q1. However, following an improvement in Q2, the shares increased by about 7% shortly after the announcement was made. One of the major reasons why the Q1 performance for the electric car manufacturer was disappointing is that the company decided to expand deliveries across the United States and was p...
Tech Stock Surge Significantly as Trump Reverses Huawei Export Ban

Tech Stock Surge Significantly as Trump Reverses Huawei Export Ban

Market
A while ago, the President of the United States, Donald Trump, placed an export ban on China’s tech giant Huawei preventing them from buying American tech products. Following this ban, Huawei's stock took a dip as Google and some other tech companies ended their relationship with the tech giant. However, Trump recently said that he would reconsider his decision and allow Huawei to buy American products as long as it's not a threat to national security. Following his recent comment, tech stocks increased significantly.  Trump Reverses His Ban On Huawei, Tech Stocks Surge Significantly  The year-long trade war between China and the US may finally be coming to an end as Trump and Chinese President Xi Jinping make a truce that would ease the restrictions on the tech giant, Huawei. Shortly
World Stock Remains Steady as Uncertainty about the US-China Trade Deal Intensifies

World Stock Remains Steady as Uncertainty about the US-China Trade Deal Intensifies

Market
The United States and China have been in a trade war for a while now. Both countries can't seem to come to a mutually beneficial trade deal and this is affecting the global stock market. This has affected the stock market because traders are not sure how the trade deal will play out and they are being careful about it. As the President of China, Xi Jinping and the President of the United States, Donald Trump is preparing for another meeting, the global stock market has remained steady. Traders Avoid Bold Steps Ahead Of Meeting Between Trump And Jinping Yesterday, the Asian stock markets slipped but the European shares increased a little with pan-European STOXX 600 recording a 0.08% gain. Across the globe, Germany's DAX index recorded the highest gains as it was up by 0.36% within a 24 ...
Bitcoin Surges above $12,000, Veteran Trader Predicts a rise to $100,000 as Market Enjoy the Bull Rally

Bitcoin Surges above $12,000, Veteran Trader Predicts a rise to $100,000 as Market Enjoy the Bull Rally

Market
Bitcoin is the first cryptocurrency which was created by the anonymous Satoshi Nakamoto about ten years ago. Shortly after it was created, other cryptocurrencies were created as alternatives to Bitcoin. These ones are called altcoins and they include Ethereum, XRP, Litecoin and many others. Over the years, the price of Bitcoin has experienced high volatility. Towards the end of 2017 and at the beginning of 2018, Bitcoin reached its all-time high of almost $20,000. This was followed by a decline to the $3200 level. This period of decline is commonly known as the cryptocurrency winter. Bitcoin Recovers Above $12,000, Trader Predicts More Gains Since the beginning of 2019, the price of Bitcoin has been on a steady rise against the USD along with the rest of the cryptocurrency market. La...
Pier 1 Imports to Close 45 Stores After  Recording a Loss in its Fourth Quarter

Pier 1 Imports to Close 45 Stores After Recording a Loss in its Fourth Quarter

Market
Home-decor retailer, Pier 1 Imports, has said that it will be closing 45 stores this year and cutting down the cost to the tune of $110 million. Cheryl Bachelder, Interim chief executive officer of Pier 1 Imports, on Wednesday, said that the company will be taking drastic measures to achieve the turnaround that it aims for. The Fort Worth-based home furnishings retailer reported a fourth-quarter loss of $68.8 million against the $18 million loss that analysts had predicted. The struggling company disclosed that its sales dropped 19.5% and this has caused them to seek ways to improve their cost structure. If things do not change for the better, the home decor retailer has revealed that it could close up to 15% of its 973 stores in the U.S. and Canada. When an analyst asked why the...
Donald Trump Says Stock Market should be 5,000 to 10,000 Points Higher

Donald Trump Says Stock Market should be 5,000 to 10,000 Points Higher

Market
The United States stock market hasn't had a smooth ride. There have been some setbacks along the way and the trade war between China and the United States has also affected the market. Even with all the challenges the stock market has faced, it is still up by 35.6% since the election day. This equates to about $9.1 trillion according to Wilshire Associates. Donald Trump doesn't believe this progress is enough. On more than one occasion, he has accused the Federal Reserve of disrupting stock market growth by raising rates. He has also asked central banks to implement policies that helped the country during the last economic crises. Last week, he said that policymakers should focus more on quantitative easing rather than quantitative tightening as this would promote the stock market growt...