Market Morning: Bitcoin Nerves, Dollar Surges, Amazon Go’s, Gas Prices Woes

Cryptocurrency IPOs Getting Nervous

Could the latest round of crypto-volatility be tied to potential IPOs fighting to levitate the market in the face of falling speculative interest? Could be. Bitcoin Cash (BCH-USD) for one is up 26% on the day, blowing past Bitcoin (BTC-USD). Bitcoin Cash happens to be one of the main coins that prospective crypto-IPO Bitmain sells mining equipment for, and a sizeable wing of the crypto community considers it the real Bitcoin, calling it such, and relegating the term Segwit to what most call Bitcoin. It will be interesting to see what happens to the collective crypto market cap after the three main IPOs take place for Bitmain, Ebang, and Canaan, all mining companies, or if any of the prospective IPOs will be cancelled, which would be unlikely considering expectations and hype.

SEE: Satoshi Vision Pool (SVPool) Is Ready For Launch With Over 200 Registered

Dollar Surges On Rate Hike, Stocks Marginally Higher

The dollar index (NYSEARCA:UUP) surged higher on the back of yesterday’s Federal Open Market Committee rate hike to a target range of 2-2.25%. The dollar is up close to six tenths of a percent today, and gold has taken a plunge back down to the mid $1180 range. While the rate hike was expected, it still aggravates the differential between Eurozone interest rates, which are still locked at zero, encouraging more and more capital to flow into the dollar, thereby increasing its value relative to other currencies. The longer term question is how long can fiscal policy sustain higher and higher interest rates, since deficits keep climbing and the Fed does not seem to be want to listen to President Trump’s cajoling them to stop the rate hikes in order to preserve the economic progress he takes credit for. US stocks, meanwhile, are up this morning, marginally, shaking off the latest rate hike.

Amazon Go Opens Up in SoHo, Manhattan

An Amazon (NASDAQ:AMZN) Go brick and mortar store is having its opening day in the SoHo neighborhood in Manhattan. It is a 4-Star store concept, stocking only products ranked with 4 stars on Amazon’s website. If you’ve never been to it, it’s at www.amazon.com. They’ve got a lot of stuff there that you can buy. Amazon Prime members will get the same discounted price for whatever they buy at the outlet, and all others will have to pay the list price. If all goes well, expect Amazon to open other brick and mortar outlets throughout Manhattan, threatening all sorts of retailers, except for Whole Foods of course, which Amazon owns.

Gas Prices at Seasonal Four Year High

US gasoline prices are higher than they have been in the last 4 years on a seasonally adjusted basis. Gasoline prices (NYSEARCA:UGA) tend to fall after the summer driving season but haven’t done so as strongly as expected this year, keeping the national average at about $2.87 a gallon. Crude oil (NYSEARCA:USO) is up over 1% today and full sanctions against Iranian oil exports have yet to be implemented. Imagine how expensive gasoline gets when US sanctions get kicked into full gear. Hopefully, the gear they will be kicked in to will be energy efficient have decent mileage. Otherwise, those sanctions are going to be quite expensive.

Italian Budget Delay Keeps European Bond Market On Edge

Italy is dragging its feet again, not sure how to pass a budget given fiscal constraints it doesn’t really want to obey anymore, as if it ever really did anyway. Italian stocks (NYSEARCA:EWI) fell 2% today and yield have hit a 3 week high, sitting at just under 3% on the 10-year. The delay was denied by government officials, saying that everything is ”fluid” which is supposed to be comforting, but markets did not buy it. In fact they sold it. The news comes on the back its finance minister, Giovanni Tria, threatening to resign, probably over fiscal matters he doesn’t want to be associated with. But he’s taking one for the team, though who knows how much longer the team will last.

 

 

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