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Both the cryptocurrency and the US equity markets slipped into red on Thursday, with the price of bitcoin and the Dow Jones Industrial Average futures that suffered losses before the opening bell, despite a series of positive news for stock traders.
As of 8:12 am, Dow futures implied an opening loss of 70 points or 0.29%, while S & P futures fell 0.42% and those of the Nasdaq recorded losses of 0.5%.
At one point on Wednesday, a lively Dow seemed to reach 24,000, but the rally stopped at 23,985 and the index closed at 23,879.12 for a gain of 91.67 points. The S & P 500 gained 0.4 percent closing at 2.584.96, and the Nasdaq rose 0.87 percent to 6.957.08.
USA and China remain in & # 39; Close Contact & # 39; on Trade Deal
This morning's withdrawal, which could end the Dow winning streak – the longest since November – has arrived despite indications that the United States and China have made significant progress towards the conclusion of a commercial war between the two heavyweights dell & # 39; economy.
On Thursday morning, the Chinese Ministry of Commerce issued a brief statement that referred to the recently concluded cycle of negotiations as "broad, deep and meticulous" discussions that laid the "foundations for dealing with areas of common interest".
Here is the complete declaration (CNBC translation):
From January 7 to 9, China and the United States discussed in Beijing at the deputy minister level on the issue of trade. Both sides have enthusiastically implemented the important agreement of the leaders of both countries and have held wide, deep and meticulous discussions on shared observations on trade issues and structural problems, laying the groundwork for addressing areas of common interest. Both sides agreed to continue to maintain close contact.
The official declaration of the United States was a little less magnanimous, but nevertheless highlighted "China's commitment to buying a considerable quantity of agricultural, energy, manufactured goods and other products and services from the United States" .
It seems more and more that the two sides will reach an agreement before the tariff truce expires on 1 March, but perhaps the markets are cautious in judging prices too quickly.
Government arrest: Trump Storms on Pelosi and Schumer
There has also been positive news on the domestic front, as the Federal Reserve published a few minutes of its December meeting which stated that the independent central bank could "afford to be patient for a further strengthening of the policy" and that several officials of the Fed believe that the bank will adopt "A relatively limited approximately" of interest rate increases in the near future.
The Fed chairman, Powell, had previously stated that the bank would be cautious in narrowing its balance sheet, a comment that helped Dow to rally a massive rally at the start of the year, and minutes of meeting The Fed initially strengthened the markets ahead of Wednesday's close.
However, the permanent arrest of the US government – which is now entering its 20th day – could have a confused optimism for investors.
US President Donald Trump came out of a meeting with the Democratic Congress leadership, tweeting later that the discussion with House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer was a "total waste of time" .
I just left a meeting with Chuck and Nancy, a total waste of time. I asked what will happen in 30 days if I open things quickly, will you approve of Border Security including a wall or a steel barrier? Nancy said, NO. I said hi bye, nothing else works!
– Donald J. Trump (@realDonaldTrump) 9 January 2019
As a result, the prospects for an agreement that would end the partial closure of the government – or at least finance the individual departments – appear gloomy. Trump wants his wall, and the Democrats refuse to give it to him.
Bitcoin Price can not defend $ 4,000
Although perhaps not directly connected, the cryptocurrency market also suffered losses, as the price of bitcoin proved unable to defend the psychologically significant barrier of $ 4,000.
Bitcoin's recent move above $ 4,000 was welcomed by cryptocurrency investors, but analysts said the top cryptocurrency would have to break higher towards $ 4,500 to confirm that the market was becoming bullish. Otherwise, they said, bitcoin could see further losses in the future.
Bitcoin's price had spent most of the last few days bouncing around $ 4,000 on Coinbase and other BTC / USD trades, and hardly anyone was surprised when it eventually split south. Bitcoin has now canceled its 2019 earnings and is currently down 1.17% from 1 January.
Of course, it's not all bad news for bitcoins. As noted for the first time by Mati Greenspan, Senior Market Analyst, the number of BTCUSD short films on the Bitfinex cryptocurrency exchange has decreased considerably since mid-December, in particular since 5 January. The Longs, along with the price of bitcoin, have increased, suggesting perhaps a real change in the sentiment of the trader.
That said, today's pullback has been accompanied by an obvious reversal in this trend, with shorts sprouting and the years have suffered a sharp decline.
Shutterstock foreground image. Price charts from TradingView.
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