U.S. Stocks Rise after Quarterly Earnings Reports; Bitcoin Rises

Bitcoin hit a six-month high and almost hit its all-time high as traders bet that the listing of the first exchange-traded fund (ETF) that tracks Bitcoin futures on the stock exchange would attract investment into cryptocurrency. The ProShares Bitcoin Strategy ETF on NYSE Arca, owned by Intercontinental Exchange Inc (ICE.N), listed on Tuesday under the name BITO. Bitcoin has gone up about 40% this month owing to the anticipated bitcoin ETF. Bitcoin futures rose 1.2%, last trading at $62,380. 

ETFs are securities that track an asset and can be traded on a stock exchange. Crypto ETFs have launched this year in Canada and Europe as well.  

Stocks in the U.S. market moved up in early trading with corporate earnings pushing up major stocks. 

The S&P 500 gained 0.3% with Johnson & Johnson moving higher after beating estimates. Crypto stocks are in high demand with Bitcoin reaching all-time highs, ahead of the planned launch of Exchange Traded Funds (ETFs). Stocks in Europe also moved up.

  • Stoxx Europe is up by 0.26%
  • Dow Jones is up by 
  • NASDAQ is up by 0.45%

Xiaomi To Mass Produce Its Cars In 2024

Chinese smartphone maker Xiaomi CEO Lei Jun said on Tuesday it will mass-produce its cars in the first half of 2024. The shares of Xiaomi rose 5.4% today, the biggest daily percentage rise since May 12. It’s for sure that the EV era is coming. So, analyze the stocks from bearing producers to battery makers that will benefit from the EV revolution in India and be prepared to enter them at the right time.

Hungary Central Bank Hikes Rates As Expected

Hungary’s Central Bank on Tuesday raised its benchmark base rate by 15 basis points to 1.8% and pledged to fight against rising inflation risks. Deputy Governor Barnabas Virag said that the rate hike will continue in the coming months also. BUX is a blue-chip stock market index consisting of up to 25 (currently 14) major Hungarian companies trading on the Budapest Stock Exchange (BSE). It didn’t react much to the rate hike because it was already expected and is trading flat.

More Info: When interest rates are raised, both businesses and consumers will cut short their spending. Then the companies will have lesser business and stock prices may fall if the hike is unexpected. If the hike is as expected, there may not be a sudden fall because the impact would already be featured. We may witness such things in Indian markets also in the coming quarters.

Ericsson To Cut China Operations

Swedish networking and telecommunications company Ericsson on Tuesday announced to cut China operations after facing a huge sales fall in the country. This can be considered as the reaction to Sweden’s ban on China’s Huawei from selling 5G gear in the country. The company has reported better than expected third-quarter earnings fueled by strong sales of 5G equipment in most of all other countries except China. Ban has been imposed on Huawei a year ago, and Ericsson was losing market share in China since then

China’s Property Sector Shrinks For 1st Time Since Pandemic 

The property and construction sectors of China shrunk in the third quarter for the first time since the beginning of the pandemic owing to the debt crisis of one of the biggest developers, Evergrande and Beijing’s stringent measures to regulate the property market. The real estate market output shrunk by 1.6% whereas the output in construction industries shrunk 1.8% in the third quarter. This comes as the China GDP slows down and grew only 4.9% in the third quarter from a year ago compared to the expected 5.2% as reported by the National Bureau of Statistics. In India, realty stocks rallied last month on account of high disposable income among rich families.

China considers intervening in the Coal Market to control surge in prices

As the China coal futures fell 8% to their downward limit overnight, state planner is thinking about intervening in the coal market. The most active thermal coal contract on the Zhengzhou Commodity Exchange fell 4.4% overnight. The National Development and Reform Commission is reviewing measures to bring the record high prices for fuel under control. China has been struggling with an energy crisis that has been slowing the country’s growth while affecting the entire globe. Meanwhile, Beijing’s state-asset regulator has pushed for more coal production at mines.

Evergrande makes interest payment on yuan bond

Evergrande Group’s main onshore unit has made payments against the interest due on a yuan bond, after having warned of default and missing the initial interest payment on many dollar bonds. The offshore bonds of Evergrande are trading at around 20 cents on the dollar, and the stock has dropped 80% this year.