Category

Investing

Category

The cryptocurrency market is buzzing with optimism as Bitcoin (BTC) consolidates near $95,000, and altcoins like Tron (TRX) and Reserve Rights (RSR) post massive gains.

With a global market capitalization climbing 1% to $3.54 trillion, today’s crypto prices highlight a strong bullish trend.

Major cryptocurrencies, including Ethereum (ETH), Solana (SOL), and XRP, are experiencing notable price actions, attracting investors eager to capitalize on this momentum.

Let’s dive into the market’s latest updates and analyze the trends shaping December 4.

Bitcoin (BTC) hovers around $96,000

Bitcoin is trading at $95,900, with a 24-hour range of $93,629 to $96,669.

The flagship cryptocurrency’s market cap is impressive $1.9 trillion, supported by a trading volume of $70 billion.

However, its market dominance dipped slightly to 54.11%.

Source: CoinMarketCap

Ark & 21Shares sold $93 million worth of BTC on the institutional front, while Fidelity recorded $52 million in inflows, reflecting mixed sentiment.

Meanwhile, BlackRock’s ETF data remains pending, fueling speculation among investors.

Additionally, Bitcoin mining giant Foundry reduced its workforce to streamline operations, hinting at a focus on efficiency amid rising competition.

Tron (TRX) soars over 70%

Tron has emerged as one of the biggest gainers, surging over 70% in 24 hours to trade at $0.38.

Its market cap has reached $32 billion, with a trading volume of $12 billion.

This rally has propelled Tron into the top 10 cryptocurrencies by market cap, signaling growing investor confidence.

Ethereum (ETH) gains 1%

Ethereum is trading at $3,667, marking a modest 1% increase in the past 24 hours.

Its market cap is $441 billion, with trading volume hitting $40 billion.

Inflows into Ethereum ETFs reached $67 million, primarily driven by Fidelity’s $73 million contribution.

Meanwhile, Solana rose 5% to $238, buoyed by Grayscale’s application for a Solana ETF with the SEC.

The move underscores institutional interest in Solana’s blockchain ecosystem, which is gaining traction for its speed and scalability.

Reserve Rights (RSR) rockets 55%

Reserve Rights stole the spotlight with a stunning 55% gain, trading at $0.026.

This surge follows speculation that Paul Atkins could potentially lead the US SEC under a future Trump administration, sparking renewed interest in the token.

XRP drops 6% amid regulatory shifts

XRP is trading at $2.55, reflecting a 6% decline.

Ripple’s legal battle continues to make headlines as Jorge Tenreiro, Ripple’s lead attorney, joined the SEC as Chief Litigation Counsel.

This development could signal stricter crypto regulations ahead.

Source: CoinMarketCap

Meme coins show mixed performance

Meme coins saw varied price movements. Dogecoin (DOGE) dropped 2% to $0.41, while Shiba Inu (SHIB) rose 3% to $0.00003015.

Other meme tokens, including PEPE and WIF, showed minor gains, with Bonk slipping slightly.

Top losers: Kaia and Flare Network

Kaia (KAIA) was the day’s worst performer, losing 17% to trade at $0.34. Similarly, Flare Network (FLR) dropped 10%, settling at $0.034.

With major cryptocurrencies showcasing strong upward trends, today’s market outlook suggests continued bullishness.

Investors are closely monitoring developments in Bitcoin ETFs, regulatory shifts, and institutional interest to gauge the next big move in the crypto space.

The post Crypto market snapshot, Dec 4: Bitcoin at $96K, Tron soars 75% appeared first on Invezz

In a sharp escalation of US-China tech tensions, four leading Chinese industry associations have advised domestic companies to reconsider purchasing US chips, labeling them as “no longer safe.”

This rare, coordinated response follows Washington’s latest export curbs on Chinese semiconductor firms, further straining an already fraught relationship between the two global superpowers.

The move could ripple across major US chipmakers, including Nvidia, AMD, and Intel, raising questions about the future of their foothold in China’s lucrative market.

China’s warning against US chips

The advisory from Chinese associations comes on the heels of the US imposing its third set of export restrictions in three years.

On Monday, Washington extended its controls to 140 entities, including Naura Technology Group, a prominent chip equipment maker.

These actions are part of an ongoing strategy to curtail China’s technological advancements, citing national security concerns.

In response, Chinese associations representing industries such as telecommunications, semiconductors, and the digital economy urged local businesses to prioritize domestic chips or explore alternatives from other regions.

The Internet Society of China, through its WeChat account, encouraged firms to “proactively” adopt locally produced semiconductors and reduce reliance on US suppliers.

The warning could disrupt business for US semiconductor giants like Nvidia, AMD, and Intel, which have historically maintained a strong presence in China despite export restrictions.

The Semiconductor Industry Association (SIA), a US trade group, dismissed the claims of American chips being unsafe, stating, “Coordinated calls in China to limit procurement of US chips are unhelpful and inaccurate.”

The SIA further emphasized the importance of targeted export controls that address specific security concerns, urging both nations to de-escalate the conflict to prevent broader economic fallout.

China’s rare earth export ban

Compounding the tension, Beijing has banned the export of critical rare earth minerals used in military applications, solar cells, and fiber optics.

This move is seen as a direct retaliation against the US trade policies.

A White House National Security Council spokesperson responded, vowing to deter further “coercive actions” from China and accelerate efforts to diversify supply chains away from Chinese dominance.

The warnings echo earlier actions against US companies like Micron, which faced a cybersecurity review and eventual restrictions in China.

Similarly, Intel has been scrutinized by Chinese cybersecurity bodies for allegedly harming national security.

Such measures indicate a broader strategy by Beijing to challenge US dominance in critical technology sectors.

As both nations double down on protective measures, businesses on both sides of the Pacific face increasing uncertainty.

While China pushes for domestic innovation, US companies are likely to explore new markets to offset potential losses.

The escalating trade war could redefine the global semiconductor landscape, impacting supply chains and investment decisions worldwide.

The post Chinese industry groups claim US chips are ‘no longer safe’: here’s why appeared first on Invezz

In response to South Korea’s recent political upheaval, the Bank of Korea (BOK) announced on Wednesday its commitment to boost short-term liquidity and stabilize foreign exchange (FX) markets as necessary.

The central bank’s proactive measures follow a dramatic sequence of events, including President Yoon Suk Yeol’s surprise martial law declaration and its swift reversal by the National Assembly.

The Bank of Korea convened an emergency board meeting early Wednesday to assess the financial impact of the turmoil. Following the meeting, the central bank released a statement pledging to inject funds into the market through special loans if required.

“As announced together with the government, we will provide sufficient liquidity for a limited time until the financial and foreign exchange markets stabilize,” the BOK stated.

South Korea’s Finance Minister, Choi Sang-mok, echoed the central bank’s resolve, promising to take coordinated action to calm market volatility.

South Korean financial regulator to deploy $7.07 billion

Local reports from Yonhap News revealed that the country’s financial regulator is prepared to deploy 10 trillion won ($7.07 billion) into a stock market stabilization fund if necessary.

The political chaos began late Tuesday when President Yoon declared martial law and mobilized military forces in response to escalating domestic tensions.

However, within hours, the National Assembly intervened, overturning the declaration and compelling Yoon to rescind the order early Wednesday. The deployed military units have since been withdrawn.

Market analysts remain cautiously optimistic about the financial impact of these events.

“In our view, the negative impact on the economy and financial markets could be short-lived as uncertainties in the political and economic environment could be quickly mitigated through proactive policy responses,” Citi analysts noted in a client report.

The political instability sent shockwaves through global markets, with South Korean stocks experiencing sharp fluctuations on Tuesday.

The iShares MSCI South Korea ETF (EWY), a key index tracking over 90 large and mid-cap South Korean companies, plunged 7% during US trading, hitting a 52-week low. It later pared losses, closing down 1.6% as news of the lifted martial law spread.

This turbulence follows a surprise decision by the Bank of Korea last week to lower its benchmark interest rate by 25 basis points, a move aimed at supporting the economy amid rising inflation and global uncertainty.

The combination of monetary easing and targeted liquidity measures demonstrates the central bank’s readiness to shield South Korea’s financial markets from prolonged instability.

The BOK’s interventions, coupled with government-backed stabilization efforts, aim to restore confidence in South Korea’s economy.

While the short-term volatility has rattled investors, market experts believe that swift policy actions could limit the long-term impact.

With South Korea being a pivotal player in the global semiconductor and technology sectors, the stability of its financial markets will be closely monitored in the coming days.

The post Bank of Korea pledges short-term liquidity boost to stabilize FX market amid political turmoil in South Korea appeared first on Invezz

Asian markets were rattled on Wednesday following political upheaval in South Korea, where a brief imposition of martial law created uncertainty across financial markets.

The South Korean won saw volatile trading, briefly strengthening on suspected intervention but remaining near its two-year low against the dollar.

Meanwhile, the benchmark KOSPI index dropped nearly 2%, cementing its position as Asia’s worst-performing stock market this year.

The MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.32%, weighed down by a decline in top constituents like Samsung Electronics.

Other Asia-Pacific markets traded mostly lower as investors responded to political developments in South Korea and fresh economic data from the region.

Japan’s Nikkei 225 slipped 0.4%, while the broader Topix index also declined by 0.4%.

In contrast, Hong Kong’s Hang Seng Index edged up 0.1%, bucking the broader regional trend. Mainland China’s CSI 300 dipped 0.2%, reflecting cautious sentiment among investors.

Meanwhile, Australia’s GDP data revealed slower-than-expected economic growth in the third quarter. Persistent inflation and elevated borrowing costs continued to weigh on the economy, dampening investor confidence.

The S&P/ASX 200 in Australia dropped 0.38%, closing the trading session at 8,462.6.

South Korean stocks experienced significant volatility overnight in the US markets as political unrest gripped the world’s 13th-largest economy.

The iShares MSCI South Korea ETF (EWY), which tracks over 90 large and mid-cap South Korean companies, plunged as much as 7% during trading, hitting a 52-week low.

However, the ETF pared losses later in the session, closing down 1.6% after President Yoon announced the lifting of his emergency declaration, following the National Assembly’s vote to overturn his martial law decree.

In contrast, U.S. markets were steadier.

The S&P 500 edged up 0.05%, while the Nasdaq Composite gained 0.4%, with both indexes reaching record highs.

The Dow Jones Industrial Average, however, lagged, slipping nearly 0.2%.

Government intervention to stabilize markets

In response to the turmoil, South Korea’s finance ministry announced readiness to inject “unlimited” liquidity into financial markets.

Reports indicated that the financial regulator had prepared a 10 trillion won ($7.07 billion) stock market stabilization fund.

The finance minister addressed the media early Wednesday, assuring swift measures to prevent prolonged instability.

Charu Chanana, Chief Investment Strategist at Saxo, told news agency Reuters:

Korean authorities are acting decisively to stabilize the market. While the initial shock might push investors toward safer assets, the long-term impact is expected to be contained.

Global impacts and broader market trends

The uncertainty from South Korea added to existing global market jitters, including political unrest in France.

The euro edged lower by 0.11%, trading at $1.04975, as French lawmakers prepared for critical no-confidence votes against Prime Minister Michel Barnier’s coalition.

French bond futures fell 0.13%, while European stock futures slipped 0.14%.

Analysts warned that a collapse of the French government could widen bond yield spreads, further pressuring the euro.

On the macroeconomic front, US markets remain focused on upcoming Federal Reserve cues.

Recent labor market data showed an orderly slowdown, with job openings increasing in October and layoffs seeing their sharpest drop in 18 months.

Markets are pricing in a 72% probability of a 25-basis-point rate cut at the Fed’s next meeting, with more cuts expected in 2024.

Federal Reserve Chair Jerome Powell’s comments on Wednesday will likely shape near-term market sentiment.

Commodities and currency movements

The dollar index rose 0.12% to 106.45, buoyed by safe-haven demand amid global uncertainties.

Gold prices slipped 0.17% to $2,639 as the dollar strengthened.

Oil prices remained stable after a 2% gain on Tuesday, fueled by geopolitical tensions in the Middle East and anticipation of OPEC+ extending supply cuts.

As political tensions in South Korea ease, focus shifts to global central bank policies and geopolitical developments.

Investors will watch closely for signs of stabilization in Asian markets and potential knock-on effects on global financial conditions.

The post South Korean political unrest jolts Asian stocks, triggers market volatility appeared first on Invezz

South Korea experienced an unexpected political upheaval as President Yoon Suk Yeol declared martial law in the middle of the night, a dramatic move that was swiftly counteracted by the National Assembly.

The situation, which unfolded over just six hours, drew global attention and tested the resilience of South Korea’s democracy.

Despite the tension, the nation’s markets displayed relative stability, reflecting a cautious optimism amidst the uncertainty.

Martial law declared and revoked within hours

In an unprecedented turn of events, President Yoon announced martial law, deploying military forces to the National Assembly.

However, legislators voted unanimously to revoke the decree, leading Yoon to step back in a second broadcast hours later.

The move, reminiscent of historical power struggles, sparked protests across South Korea and calls for Yoon’s impeachment, with an early election now appearing likely.

While the situation created immediate volatility, the Bank of Korea’s decision to provide market liquidity without cutting interest rates offered a stabilizing effect.

The KOSPI index, South Korea’s main stock benchmark, fell by over 2% but remained above its yearly lows—a testament to the underlying strength of the economy despite political uncertainty.

Global markets show resilience amid South Korea’s crisis

South Korea, a linchpin of the global economy and a critical ally of the US, has long been a symbol of stability in a geopolitically sensitive region.

The declaration of martial law and its rapid reversal sent ripples across global markets, but the reaction was measured.

The FTSE Global Stock Index showed a slight dip during the announcement, but any losses were quickly recovered as the situation de-escalated.

The S&P 500 even reached an all-time high, signaling that while the crisis captured international attention, it was viewed as a localized event with limited long-term implications for global markets.

Analysts likened Yoon’s failed power grab to the 1991 Soviet coup against Mikhail Gorbachev, calling it a sign of political weakness rather than strength.

South Korea and the global postwar order

The turmoil in South Korea highlights broader challenges facing nations that have thrived under the postwar economic framework.

Alongside countries like France, Germany, and Japan, South Korea exemplifies the benefits of globalisation.

However, political fragmentation and rising populism suggest that these beneficiaries of the Pax Americana order are under increasing strain.

Across the globe, voters are expressing dissatisfaction with the status quo, leading to political stalemates and, in extreme cases, desperate moves like South Korea’s declaration of martial law.

Observers note that this political turbulence coincides with the US shifting its global stance, leaving these nations to navigate an uncertain future.

Economic implications and market outlook

South Korea’s economic fundamentals remain robust, even as political uncertainty looms.

The Bank of Korea’s decision not to cut interest rates is a positive indicator, suggesting confidence in the nation’s financial resilience.

Meanwhile, global markets continue to focus on other pressing issues, including the Federal Reserve’s expected rate cut later this month and oil price fluctuations driven by geopolitical tensions.

The Korean won saw limited movement, reflecting confidence in the country’s financial stability.

However, analysts warn that prolonged political instability could undermine investor confidence, especially if impeachment proceedings against Yoon proceed or an early election leads to further uncertainty.

Broader implications for democracy and stability

The swift rejection of martial law by South Korea’s National Assembly and the public demonstrates the resilience of its democratic institutions.

However, the episode serves as a stark reminder of the fragility of political stability in even the most developed democracies.

As nations worldwide grapple with political and economic pressures, South Korea’s experience underscores the importance of strong democratic frameworks and sound economic policies.

While the immediate crisis appears to have passed, the long-term implications for South Korea’s political landscape and its role in the global order remain uncertain.

The post South Korea’s political turbulence shakes markets but democracy endures appeared first on Invezz

Barclays has agreed to pay $19.5 million to settle a securities fraud lawsuit filed by shareholders in Manhattan federal court, over its misstep in selling $17.7 billion more debt than US regulators had authorized.

The settlement, which was filed in court on Tuesday, is subject to approval by US District Judge Katherine Polk Failla.

What was the Barclays debt sale case?

The case stems from a significant error by Barclays that resulted in the overselling of structured and exchange-traded notes, and allegations that the bank’s internal controls were inadequate to prevent the mistake.

The lawsuit was filed by investors who claimed they suffered financial losses because they trusted Barclays’ assurances that its procedures were in line with regulatory standards.

The plaintiffs argued that the bank misrepresented its internal control mechanisms, leading them to invest in Barclays American depositary receipts between February 2021 and February 2023, unaware of the risks posed by the overissuance of debt.

In March 2022, Barclays admitted that it had sold $15.2 billion more debt than permitted by US regulators between 2017 and 2022.

The situation worsened when, in July 2022, the bank revised the oversold amount to $17.7 billion and set aside £1.59 billion ($2.01 billion) to address the excess issuance.

The bank also repurchased the oversold debt and restated its financial statements for 2021, with executives calling the error an “entirely avoidable” and “self-inflicted” issue.

‘Recklessly’ negligent

Despite the settlement, Barclays has maintained that it did not engage in any wrongdoing.

The bank’s decision to settle, however, comes after a court ruling that allowed the case to move forward, rejecting the bank’s attempt to dismiss the lawsuit.

US District Judge Failla found that shareholders had a plausible case, and suggested that Barclays executives, including former CEO Jes Staley, could be seen as “recklessly” negligent in handling the matter.

She also pointed to the failure of the bank’s debt tracking system, which did not exist, as a key failure in preventing the overissuance.

The lawsuit, titled In re Barclays Plc Securities Litigation, accused the bank of misleading investors about its internal controls and regulatory compliance, resulting in significant financial losses.

Shareholders argued that Barclays’ assurances regarding its debt policies and procedures were generic and insufficient to protect their investments.

As part of the settlement agreement, Barclays did not admit to any wrongdoing but agreed to compensate shareholders for their losses.

The case serves as a reminder of the importance of strict adherence to regulatory standards and robust internal controls in large financial institutions.

Barclays’ former CEO Jes Staley stepped down from his position in November 2021 following the fallout from the overissuance.

Although the settlement resolves the immediate legal challenges for Barclays, the broader implications for the bank’s internal controls and regulatory compliance practices remain to be seen.

This case highlights ongoing concerns in the financial sector regarding transparency, risk management, and the responsibilities of banks to safeguard investor interests.

The $19.5 million settlement comes after months of litigation and will likely serve as a cautionary tale for other financial institutions on the importance of meeting regulatory requirements and maintaining effective oversight of financial transactions.

The post Barclays settles $17.7 billion debt sale lawsuit for $19.5 million amid securities fraud claims appeared first on Invezz

European markets edged higher on Wednesday as investors navigated political uncertainty in France ahead of a crucial no-confidence vote in its parliament.

Meanwhile, Indian markets saw strong performance in public sector banks, with financial stocks rallying on expectations of policy easing by the Reserve Bank of India (RBI).

The French CAC 40 index rose 0.3% in early European trading hours, with investors closely watching the political drama surrounding Prime Minister Michel Barnier’s government.

This week, Barnier invoked special constitutional powers to push through a contentious budget bill, bypassing a parliamentary vote.

The move has sparked two no-confidence motions, one led by left-wing rivals and another supported by the far-right National Rally party.

Analysts widely expect the government to collapse after the vote, which could usher in a period of heightened political and market uncertainty.

Elsewhere in Europe, the autos sector led gains on the Stoxx 600 index, advancing nearly 1%.

Italian newspaper Corriere della Sera reported that Stellantis is considering outgoing Apple Chief Financial Officer Luca Maestri as a candidate for its CEO role, fueling investor optimism.

Conversely, stocks in healthcare, food and beverage, and basic resources lagged, reflecting a mixed trading session.

South Korea’s political turmoil under scrutiny

Beyond Europe, political upheaval in South Korea also caught investors’ attention.

Markets in Asia-Pacific opened lower following President Yoon Suk Yeol’s abrupt declaration and subsequent withdrawal of martial law within hours.

The move triggered widespread protests and prompted opposition lawmakers to consider impeachment proceedings.

Investors are bracing for further developments as South Korea’s parliament prepares to vote on Yoon’s future within 72 hours.

Indian markets: PSU banks shine amid RBI policy hopes

In India, benchmark indices Nifty and Sensex experienced intraday volatility, ultimately closing with marginal gains as banking and realty stocks outperformed.

However, sectors like auto, FMCG, and metals struggled, capping broader market gains.

At the close, the Sensex added 110.58 points, or 0.14%, to finish at 80,956.33, while the Nifty rose 10.30 points, or 0.04%, to end at 24,467.45.

A total of 2,307 stocks advanced, 1,507 declined, and 95 remained unchanged.

Public sector banks stole the spotlight, with the PSU Bank Index surging over 2%, extending its rally from the previous session.

State Bank of India (SBI), the nation’s largest public-sector lender, gained nearly 2%.

Other major gainers included UCO Bank, Central Bank, Indian Overseas Bank, and Punjab & Sind Bank, with their shares climbing between 6% and 9%.

Market sentiment was buoyed by speculation that the RBI might announce a cut in the cash reserve ratio (CRR) during its upcoming policy meeting.

Such a move could inject additional liquidity into the banking system, further fueling gains in the financial sector.

With France’s political landscape hanging in the balance and South Korea grappling with turmoil, global markets remain on edge.

Meanwhile, India’s banking sector offers a bright spot, as policy measures from the RBI could provide a much-needed liquidity boost.

As these narratives unfold, investors will continue to monitor developments closely for potential market shifts.

The post European stocks climb as French no-confidence vote looms; Indian PSU banks lead gains appeared first on Invezz

Generated by Feedzy