Indices Stay Flat on Last Day of the Week
Markets in the U.S. stayed sideways with the crypto markets being wobbled by Chinese regulations. Stocks are confused after Bitcoin, Ethereum and others crashed after China said crypto-related transactions will now be considered illicit financial activity.
Stoxx Europe is down by 0.90%
Dow Jones is flat
NASDAQ is up by 0.23%
China Declares All Crypto-Currency Transactions As Illegal
China’s central bank on Friday announced that all transactions of crypto-currencies are illegal and it led to the fall of major cryptos. Major Chinese regulators including the central bank as well as banking, securities, and foreign exchange regulators vowed to rule out illegal cryptocurrency activities such as transactions and mining. At the time of writing, Ethereum and Bitcoin are down by 6-8%.
Nike Falls After It Lowers Growth Forecast
The stocks of Nike fell heavily after it lowered its sales forecast as the disturbance in the supply chain affected the production and shipping of products. It now expects 2022 sales growth to be around 5% against the double-digit growth it previously estimated. The company lost 10 weeks of production in the Vietnam hub and it prevented Nike from keeping up with consumer demand. The stock is down by more than 6% in NYSE.
Covid Booster Shots Will Be Free And Accessible: Biden
American President Joe Biden said on Friday that Covid-19 vaccine booster shots will be free and easily accessible. He also urged front-line workers, Americans over 65, and those with underlying health conditions who got Pfizer’s coronavirus vaccine to receive a booster shot. And people who received the Moderna or Johnson & Johnson vaccines “still have a high degree of protection” and will be able to get booster shots later.
U.S. New Home Sales Beat Expectations
The Commerce Department said on Friday the sales of new U.S. homes rose 1.5% to a seasonally adjusted annual rate of 740,000 units in August. July sales were revised up to 729,000 units from the previously reported 708,000 units. But analysts say that there are signs that U.S housing market momentum is slowing.
Blockchain- And Crypto Linked Firms Falls After Chinese Ban
The Chinese ban on crypto-linked activities took not only the currencies down but also many other blockchain and crypto-related companies. Crypto exchange Coinbase(-3%), Hut 8 Mining(-6%), Bit Digital(-5%), Riot Blockchain(-6%) fell heavily in NASDAQ on Friday. MicroStrategy-one of the biggest Bitcoin investors among listed companies also fell more than 4%.