Market Watch review.
In today's release, we’ll cover the following topics:
The financial authorities of Sweden, which refused to impose a quarantine due to the spread of coronavirus, actually admitted that the country's banking system does not have enough money in the face of a pandemic.
The Swedish regulator acknowledged that the experience of introducing negative rates was not entirely successful and announced an additional round of quantitative easing. As a result, the RiksBank release says that the coronavirus pandemic "continues to dominate the development of the global economy".
GDP growth forecasts are being revised downward not only in Sweden, but also in other countries around the world. The regulator plans to accelerate the pace of purchases of securities under the easing program in the first quarter of next year.
At the moment, there are four central banks with negative rates: the ECB, Japan, Switzerland and Denmark.
The price of oil is gradually moving to the level preceding the rupture of the OPEC+ deal, which led to a crisis in the commodity market.
The price of a futures on a barrel of Brent oil on the London ICE exchange at the moment has risen above $49, according to trading data. The total price increase was 1.43% since the beginning of the trading session.
Such a price level has not been recorded since March 6, the day the OPEC+ deal broke, which led to a sharp drop in quotations and a crisis in the oil market. Oil rises in price for the fifth day in a row amid positive news about trials of new vaccines against COVID-19 and data on the recovery of markets in the US and Europe.
January futures price for Texas WTI rose 2.54% to $ 46.05.
The cryptocurrency market's record-breaking rise in three years ended with a “bloody” sale. Bitcoin plunges more than $ 3,000, or 15% on Thursday, the biggest drop since March.
At the beginning of the US session on Wednesday, the price of Bitcoin came close to historical highs, reaching $19,500. Then the cryptocurrency began to correct and a few hours later, in the Asian session on Thursday, it collapsed by about $1,500. After a four-hour consolidation, the market was covered by a second wave of sales, and the price of the main digital currency collapsed by another $1,500.
The prospect of tighter regulation of cryptocurrencies and profit taking after a feverish takeoff are the main reasons for the price collapse. Apparently, therefore, the "whales" decided to fix profits, this is also evidenced by the sharp increase in transactions for transferring bitcoins from wallets to exchanges.
Closely monitor the news background and be prepared for all the surprises of the market.