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Cryptocurrency prices plunged again on Friday after China launched its second advantage against Bitcoin in three days.
The new wear and tear removed 12% of the value of bitcoin, 20% of ether and 18% of dogecoin and also appeared to bleed into the U.S. stock market, where the Nasdaq, which had a lot of technology, fell in the last hour of negotiation. close to its minimum during the day.
A statement from Chinese Vice Premier Liu He on Friday reaffirming Beijing’s determination to curb mining and cryptocurrency trading triggered the latest decline.
The cryptocurrency exchange Coinbase showed on Friday afternoon in the United States a bitcoin price above US $ 34,000, still above the $ 30,000 set on Wednesday after the People’s Bank of China warned financial institutions not to accept cryptocurrencies as payment or offer of related services and products.
The technology-focused Nasdaq Composite index ended 0.5% less on the day, although the index remained 0.3% higher during the week.
The S&P 500 index closed 0.1% lower, also close to the daily low and 0.4% lower than the week. The result meant the first consecutive weekly losses of the index since February.
On Wednesday, the Federal Reserve released the minutes of its latest policy meeting showing that some of its rate regulators thought the U.S. central bank should “start at some point” to discuss “a plan to adjust the pace of asset purchases “.
Global stocks had been volatile in the run-up to the minutes, but settled as analysts and investors reacted. signals that the U.S. central bank was in no hurry to cut $ 120 billion in monthly bond purchases that have boosted financial markets since March last year.
“We remain skeptical that officials are prepared to send what could be interpreted as a countdown signal” in June or July, said Jim O’Sullivan, U.S. macro-strategist at TD Securities, “which would probably be needed to announce the reduction of time “before the end of the year”.
On Friday, a survey of investors looking for signs of changes in economic output indicated that trade conditions in the United States were booming.
Markit’s IHS purchasing managers index for the U.S., based on responses from manufacturing and services executives to questions on topics such as hiring plans and new business, the highest reading in history occurred in May 68.1.
A reading of 50 separates the growth from the contraction of the index, with the so-called flash reading of May driven by what IHS called “the fastest rise in the service sector recorded,” as they returned to open the previously closed sectors of the economy.
While PMI surveys are closely monitored for signs of economic recovery, they also provide information on future levels of inflation that may affect actual stock and bond yields.
“The rate of ticket price inflation rose to a new survey record,” IHS said. And while Fed policymakers still largely view inflationary pressures as a transient effect of a post-pandemic demand boom, the long month of global stocks has stalled over the past month, as investors are wondering if the central bank could move too slowly to cope with rising prices. .
“While economic activity is constantly improving, what equity markets will internalize is that there are fewer reasons to support the monetary policy front as the data improves,” said Mobeen Tahir, director of WisdomTree research.
The price of spot gold, perceived as a hedge against inflation, was trading at $ 1,880 an ounce on Friday, its highest level since January.
The yield on the US Treasury note at ten years was flat, at 1.623%. The equivalent yield of the German Bund also remained at less than 0.126%.
The euro fell 0.3 percent against the dollar, to $ 1.2185, as the U.S. currency rebounded after the PMI survey. The dollar index, which measures the green dollar against trading partners ’currencies, rose 0.2% at the end of the trading day in New York.
Brent crude, the world oil benchmark, also added to the previous session’s gains, which rose 2.4% to $ 66.68 a barrel.
The European Stoxx 600 index rose 0.6%, in a rally of the final session led by energy stocks.
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