Bitcoin is gaining significantly
Corporate balance sheets put US investors in a buying mood
October 24, 2023, 11:12 p.m
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A sigh of relief on Wall Street: Bond yields may have passed their peak. In addition, some large US companies are presenting convincing quarterly figures. Meanwhile, Bitcoin continues its upward trajectory.
The fall in US bond yields below the five percent mark and figures from industry leaders have brightened the mood on Wall Street. The US leading index Dow Jones gained 0.6 percent to 33,141 points on Tuesday. The technology-heavy one Nasdaq advanced 0.9 percent to 13,139 positions and the broad S&P 500 0.7 percent to 4247 points.
The day before there had been an increase ten-year US bonds caused unrest. For the first time since 2007, they had exceeded the psychologically important five percent mark. However, over time they fell to 4.838 percent. “It is still too early to speak of a downward change in direction in yields. Instead, a yield could settle in the range between 4.50 and five percent,” wrote the strategists at Societe Generale.
The mood was brightened by optimistic forecasts from companies such as Coca-Cola and the mobile phone company Verizon. “As interest rates have continued to rise, a dramatic slowdown in the economy and a reduction in corporate earnings were expected, which has not happened so far,” said Hugh Anderson, head of investment advisor HighTower Advisors. Investors are also looking hopefully to the results of industry giants such as Microsoft and Google parent Alphabet, which are expected after the stock market closes. The strongest results in at least a year are expected.
Speculation that the first Bitcoin spot ETF would be approved in the USA boosted the most important cryptocurrency. The Bitcoin temporarily climbed by almost twelve percent to $ 35,187, the highest level since May 2022. On Monday, the cryptocurrency had already gained ten percent – the strongest daily gain in almost a year. In the evening the price was around $33,800.
Meanwhile, positive economic data from the USA failed to brighten the mood among oil investors. The North Sea variety Brent The price of US oil fell by 2.1 percent to $87.93 per barrel WTI traded 2.2 percent lower at $83.55. “There’s definitely talk in the market that the global economy is doing worse this week than last,” said Robert Yawger, an energy expert at Mizuho Bank in New York. The background is a rain of weak economic figures from the euro zone, Germany and Great Britain.
The individual values were General Electric asked about a forecast increase. The shares of the conglomerate, which wants to concentrate entirely on the aircraft industry in the future, increased by 6.5 percent. Also at the beverage company Coke Investors were pleased with the increased annual targets. The reason for this was more stable demand at higher prices. Shares rose 2.9 percent. The Swedish music streaming service Spotify excited investors with the first quarterly profit since 2021 as well as stronger than expected user numbers. The stocks listed in the USA climbed by 10.3 percent to $170.63. In addition, the US competitor was able to Nike from the better than expected quarterly figures puma benefit. The titles rose by 2.3 percent. Puma CEO Arne Freund also spoke of a return to growth in the USA and China.