ASX rebounds after steep fall, but miners left behind

0
48

[ad_1]

The Australian sharemarket has almost recovered from yesterday’s losses after financials and tech pulled it higher, however travel stocks have been hit by a Qantas announcement and miners also lagged.

The benchmark ASX 200 index closed 1.3 per cent higher after losing 1.9 per cent on Wednesday in a broad-based selloff. 

The market was buoyed by financials and tech stocks, as well as news that the unemployment rate fell despite the end of JobKeeper.

The Australian dollar also gained on the jobs data, reaching 77.5 US cents by 4:50pm AEST.

EML regained a little ground after it haemorrhaged market value during Wednesday’s trade.

The payment platform shed more than 40 per cent of its stock yesterday, after confirming Irish regulators were investigating its branch there over possible money laundering violations.

The payment platform shed more than 40 per cent of its stock yesterday after confirming Irish regulators were investigating its branch there over possible money laundering violations.

It rose 3.9 per cent to $2.91, having given up a stronger rebound earlier in the day.

Tech stocks dominated the day’s winners, with Afterpay jumping 7.7 per cent, rival Zip up 5 per cent, Altium rising 6.6 per cent and Nearmap climbing 5.1 per cent.

Qantas also gained 3.5 per cent to $4.68 after flagging further redundancies for international travel crew and a two-year wage freeze.

It also revealed it was on track for a $2 billion loss, while it believed debt had peaked.

However, the mining sector prevented a bigger rally, with South32 off 2.7 per cent, BHP down 1.1 per cent and Rio Tinto off half a per cent.

Crypto ‘bloodbath’ spilling over into traditional stocks: NAB

Minutes released from the latest Federal Reserve meeting showed some members were considering pulling back on inflationary measures such as buying government bonds.

Strong inflation readings and signs of a worker shortage in recent weeks have fuelled fears and roiled stock markets there.

NAB analysts also believe that the cryptocurrency “bloodbath” is spilling over into US tech stocks.

“Bitcoin was down 30 per cent at one point and is currently trading down 9.1 per cent,” they noted.

Bitcoin took a hit on Wednesday (local time) as China flagged a further crackdown on cryptocurrencies.

Chinese regulators have banned financial institutions and payment companies from providing services related to cryptocurrency transactions, and warned investors against speculative crypto trading.

Bitcoins
China is cracking down further on cryptocurrencies.(

Steve Garfield/flickr.com/CC BY 2.0

)

It already had rules around digital currency trading introduced five years ago but this takes China’s hard-line stance further.

They greatly expand what is banned and even judged that “virtual currencies are not supported by any real value”.

For example, it made clear that institutions must not accept virtual currencies, or use them as a means of payment and settlement.

Institutions can no longer even provide exchange services between cryptocurrencies and the yuan or foreign currencies.

But after a Chinese-led hit, bitcoin started rising again.

Which brings us to the latest from Elon Musk.

Musk still tweeting about Bitcoin

A close up of Elon Musk's face. He is unsmiling and appears to be concentrating on a person off-camera.
Elon Musk has announced that Tesla has suspended purchases using Bitcoin.(

Reuters: Mike Blake

)

Crypto enthusiasts have been taken on another wild ride by the Tesla founder.

He has now tweeted an indication that his electric car company will hold onto its bitcoin stock.

Loading

The phrase “diamond hands” refers to stubbornly holding onto a stock.

Musk also credited Tesla’s “Master of Coin,” referring to the title he has given his chief financial officer Zachary Kirkhorn.

This is all after Tesla helped drive interest in the unregulated currency by purchasing $US1.15 billion of it earlier this year and saying it would accept it as payment.

The price of the digital currency surged immediately — and gave a paper profit of well over $US1 billion for Tesla.

Then, after pressure over the coin’s environmental footprint, Tesla did an about-turn this month and said it would not accept it for payments.

That saw the coin tumble from its peak.

Musk’s tweet indicates Tesla is still holding onto its Bitcoin, although after it initially surged, its market value has now dropped to $US1.26 billion.

That is still more than what Tesla paid for it.

Since Musk’s latest “diamond hands” tweet, his ability to influence the market has started to show once again.

Loading

While some crypto enthusiasts are fuming about Musk’s ability to manipulate their currency, those who bought Bitcoin before him are still in the black.

At a current value of $US38,442, it is still worth almost four times more than what it was just a year ago.

Meanwhile, Tesla’s stock has also been trading down this month, although analysts believe this is more to do with inflation concerns in the US than anything crypto related.

ABC/wires

[ad_2]

LEAVE A REPLY

Please enter your comment!
Please enter your name here