The global stock market is venturing into bear territory as interest rate takes a hike and dollar takes a rise. Meanwhile, Gold and Palladium takes a surge and crypto maintains stability, for now.
Stock market plunges into bear territory
Stocks in the US are under a pressure as S&P 500 Index give up its gains for the year which is largely due to the rising interest rates and the prospect for slower profit growth next year. Moreover, Tech stock sare bearing the brunt of the losses. Meanwhile, the greenback is rising against major of its peers to its highest level since mid-2017.
However, the global stock market rout is only spreading as FTSE 100 hits its seventh month low and Nasdaq slumped over 4%. China is one of the world’s worst-performing stock market this year as Shanghai index is down over 28% since late January. The threats of the trade war and loss of momentum in the economy being the primary reasons for the same.
The global stock markets are suffering as the major central banks withdrew stimulus which is apparently the code for “further rate hikes are on the way.”
The MSCI all-country world indexes and MSCI Asia Pacific Index are slipping into bear market. Major European markets also opened lower but the decline has been lower than that of Asia.
The safe haven: Gold, Palladium, & Crypto
So, during this crash, people are looking for a safe haven usually that has been Gold which is currently up but down since the beginning of the year. Another metal Palladium is emerging as a winner as it is climbing high, registering 6.11% as this year’s gains.
Palladium has been the best-performing precious metal of this year and is surging due to its tightening supply. The rally in palladium further accelerated amid the growing political tension between the US and Russia, one of the top producers of the metal.
As for the crypto market, unlike the last time when the crypto market tanked along with the global stock market, this time it is at least maintaining its usual speed, for now.
Bitcoin is showing slight red movement at $6,467, down by 0.52%. The highest gains of about 19% are made by Ravencoin while Decred is down the most by almost 10%.
For now, it’s a normal day for the crypto market. Though analysts have found no correlation between the stock market and crypto market in the long term, the short term does hold some resemblance. In such events, riskier assets tend to fall first and Bitcoin and crypto market has been highly volatile. But the fact that cryptos are maintaining stability is a positive factor. Moreover, the reduced volatility just might bring investors in crypto space.
From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com