International New and Market Update: Rise of cryptocurrencies, and more

 International New and Market Update: Rise of cryptocurrencies, and more

International New and Market Update: Rise of cryptocurrencies, and more.

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  • U.S. stocks rose on Thursday as investors welcomed the announcement that lawmakers had agreed to raise the federal borrowing limit through December, averting a potentially devastating default.
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  • The benchmark S&P 500 index rose slightly, while the tech-heavy Nasdaq also gained. The Dow Jones Industrial Average jumped more than 300 points.
  • Asia-Pacific shares outside Japan rose 0.5% after gaining 2.1% the previous day, the biggest daily gain since August. Japan’s Nikkei index rose 1.8%. Chinese blue crisps added 0.56% as they resumed trading after being closed for the national holiday, while Hong Kong, which was open all week, rose 1%.

The rise of cryptocurrencies could challenge the dominance of the U.S. dollar, according to a new Fed paper

The U.S. dollar’s dominant role in global markets is likely to continue, but the rapid rise of cryptocurrencies could threaten that status, according to a new paper from the Federal Reserve. Private digital currencies such as Bitcoin and Ether, as well as government-backed currencies, could reduce reliance on the US dollar, Fed economists Carol Bertaut, Bastian von Beschwitz and Stephanie Curcuru write in their paper, “The International Role of the US Dollar.” They argue that consumer and investor preferences are changing and that new products could shift the balance between perceived costs and benefits.

Evergrande has reportedly missed bond payments recently as the developer struggles to stave off a default

Evergrande continued to falter this week as the vulnerable real estate developer missed a key payment deadline, according to a report from Bloomberg. The report, citing people familiar with the matter, said a Chinese company co-owned by Evergrande called Jumbo Fortune Enterprises missed a $260 million bond payment. The news sent Evergrande’s bonds plummeting to new lows – they now trade at less than a quarter per dollar. Exact details about the privately issued bond were hard to come by, but the incident signaled to markets that a partial default is more likely than previously thought. Observers have been wondering for weeks whether the Chinese government will step in to prop up Evergrande after urging the company to avoid a short-term default.

Mandy Nunes

https://gvmarkets.com/

Mandy Nunes is the Chief Marketing Officer for GV Markets. With 15 years of experience in the Financial Services Industry within the South African market, she has held various responsibilities within the business development, marketing, operations and regulatory space ‚Äď leading to a very fitting position within the Trading and Investment environment. Mandy has notably been the editor of 'The Ordinary Millionaire', along with having written numerous pieces within the industry at large. Holding both legal and wealth management qualifications, her goal is to bring about massive success for, and within, GV Markets. GV Markets is a South African forex and CFD broker that offers comprehensive trading solutions to both retail and professional traders. GV Markets prides itself in being a well-regulated and reputable STP brokerage that works according to a No-Dealing Desk trading model, offering traders access to some of the best liquidity providers in the country.

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