6.02 Markets are crashing, Dow experienced a big fall and WTI loses points.
On February, 6 the markets are experiencinf panick - stock are not doing well and oil crude is over-supplied which leads to the price losing mishaps. Tha day is also bad for crytpo traders, as Bitcoin is back to November price, after almost hitting $20.000 per coin.
Quite unexpected and sharp stock selloff has started together with the second month of 2018. January seemed to be pleasant and fruitful for the markets and now people are shocked – what is happening to the stocks that is causing them to fall to several months long lows.
First of all, the stocks have been reacting to the lack of monetary policy form the US Treasury. One tightening in 3 years appears to be not enough and the stocks are not reacting good to such situation.
Recent US tax cuts, economy growth and wage gains could be the cause for the inflation rate to go up. Adding to that the 3 percent target rate increase for the Central US Bank and there we have a question – is this increase really what is necessary for the economy and where will the officials stop.
All of these factors are weakening the greenback, and this is messing with the stocks all around the world. The hit is especially felt by Asian markets.
Dow Jones has just experienced the hardest point fall in its history and in the history of the American markets.
On Tuesday the index lost 1.175 points, but the percentage loss is not as serious. 4.6 percent fall if only the 14th loss in the list of Jones’ declines.
The fall must be taken really hard for those who just only got into trading less than a year ago as they are not used to such a stock behaviour.
The crypto market has been a place for price wars lately. As more and more countries are coming to the search of proper crypto regulations the marker loses more money.
In the last couple of week, cryptos have been facing massive selloffs and most market experts and professional traders are claiming the reason for the prices tumbling down are the new regulations and prohibitions which are meddling with the market.
The best example for this s Bitcoin. In the last 24 hours is has fallen from the price circling around $9.000 all the way lower to the $6.000 price. This happened as a result of the Congress seeking to find regulatory means for the market.
The situations on the market is not looking very optimistic as the trading Tuesday begins.
MSCI Asia Pacific Index extends its yesterdays’ fall and is down by 3.3%. This is the biggest plunge for this stock since summer, 2016.
S&P 500 has also fallen down more by 4.1 percent with the trading point being $2.648.94. Futures for the Index are also not looking very good – 3 percent fall has erased the growth they were showing since the beginning of the year.
Nasdaq is down by 3.78% - 6.967.53 USD per stock. This stock is also not looking recovered comparing to the numbers in the previous 24 hours.
The greenback has lost more positions to the Japanize yean and for now the massive selloff goes on – 108.79 is the rate today.
Euro remains almost unchanged with the price $1.2376.
Pound goes well - $1.3966.
Silver is traded at the point of $16.83 per ounce and gold is 1340.70. Both metal have gained price
WTI fell down 1.1 percent as the continuation of yesterday’s fall – as the supply getting bigger, the price is going down – 63.49.
- by Mark Densel