Bitcoin euphoria came out, dropped 29% over the weekend
Sterling is surely out of luck
Continuing talks on the US tax legislation under focus
Saudi Arabia called for an urgent meeting among Arab counties to discuss Iran
Investors are cautious this morning after a negative close on Wall Street on Friday. But not everything is negative, thanks to Single Day which helped the e-commerce giant Alibaba to post another record of $25 billion in sales against its previous number of $17.8 billion.
Bitcoin isn’t the most favourable asset among investors as some of the euphoria came out it. Investors took profit off the table and this pushed the price of Bitcoin down by 11 percent. The move came mainly due to the cancellation of the technology upgrade.
In terms of currencies; Sterling is surely out of luck on the back of the news that Theresa May has lost her supporters confidence. Nearly 40 conservative MPs have agreed to sign a letter which would entail no confidence in her.
If and when the letter is signed, it could push the Sterling even lower because it would raise a threat to her leadership. Another election in the UK would be the last thing which the public would have desired because they are really tired of this repetitive voting process. The Brexit negotiation process is also facing greater challenges due to the lack of the firm leadership which is also having an impact on the currency and it has also created an impact on businesses in the UK.
Something which investors would keep a close eye on would be the continuing talks on the US tax legislation. Not much progress has been made yet and investors would seek more clarity. Something of interest would be the speeches from the several members of the Federal Reserve committee and if they would increase the interest rate one more time this year.
Geopolitical tensions over in the Middle East are increasing day by day and investors are likely to gauge the impact of these by looking at the price of gold and oil. The deputy crown prince of Saudi Arabia who is hungry for more power, has called for an urgent meeting among Arab counties to discuss Iran.
The recent purge under the headline of corruption to fill the country’s coffin could just help his aim to push the country’s agenda through out the region. Lebanon is at the heart of this discussion and Saudi Arabia clearly wants to eradicate the control of Iran in Lebanon and in Syria.
The young, inexperienced and power hungry prince has major challenges and the question is if his policies would make the region more unstable. Gold and oil would be your primary indicator and any increase in tensions would bring some serious moves in them.
