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Crypto-currency prices took a renewed dip on Friday after China expanded its second side against bitcoin in three days.
The new swoon wiped out 12% of bitcoin, 20% from ethereum and 18% of dogecoin, and bloodshed also appeared on the US stock market, where the heavy technological Nasdaq plunged into the last hour of trading. close near the low of the day.
Chinese Deputy Prime Minister Liu He’s statement on Friday led to a recent decline in Beijing’s decision to reduce cryptocurrency mining and trade.
Coinbase cryptocurrency exchange showed bitcoin price above $ 34,000 on Friday afternoon in the US, still above the low of around $ 30,000 set on Wednesday, after the People’s Bank of China warned financial institutions cryptocurrencies offering payment or related services and products.
The technology-based Nasdaq Composite index was 0.5% lower on the day, although the index was 0.3% higher on the week.
The S&P 500 index closed 0.1% lower, close to the low of the day and 0.4 percent lower for the week. The results led to the first losses since the index back in February.
On Wednesday, the Federal Reserve released the minutes of its last policy meeting. This showed that some rate consolidators believed that the US central bank should start “sometime” discussing a “plan to adjust the pace of asset purchases”.
Global stocks have been volatile at the time of publication of the minutes, but have settled when analysts and investors have reacted. signs The U.S. central bank said it was in no hurry to cut its $ 120 billion-a-month bond purchase, which has boosted financial markets since March last year.
“We remain skeptical that officials will be willing to post what can be understood as a countdown signal in June or July,” said Jim O’Sullivan, U.S. macro strategist at TD Securities, “likely to reduce ads” before the end of the year.
A survey of investors on Friday showed signs of changes in economic output that indicated U.S. business conditions are rising.
Of IHS Markit index of purchasing managers Based on answers from questions from executives in the U.S., manufacturing and services sectors about issues such as hiring plans and new businesses, it created the highest reading of 68.1 ever.
The 50-year reading distinguishes between index growth and contraction, as the so-called May flash reading was prompted by what IHS called the “fastest rise in the registered service sector,” as previously closed sectors of the economy reopened.
Although PMI surveys look at signs of economic recovery, they provide an opportunity to know future inflation levels that can take real returns on stocks and bonds.
“The rate of income price inflation rose to a new survey record,” IHS said. While Fed politicians still largely see inflationary pressures as a transient effect of the post-demand pandemic, long-term global stockpiling has paused in recent times as investors question whether the central bank can move slowly to cope with rising prices. .
“While economic activity is constantly improving, what the equity markets will internalize is that there will be less support for monetary policy as data improves,” said Mobeen Tahir, director of research at WisdomTree.
The perceived price of gold as a hedge against inflation was trading at $ 1,880 an ounce on Friday, the highest level since January.
The yield on the 10-year US Treasury was 1.623%. The German Bund’s equivalent performance was also stable minus 0.126 percent.
The euro fell 0.3 percent against the dollar to $ 1.2185 as the U.S. currency bounced back after the PMI survey. The dollar index, the green dollar that measures against trading partners ’currencies, rose 0.2 percent at the end of the New York trading day.
Crude Brent, the global oil benchmark, also added to the session’s earnings as it rose 2.4 percent to $ 66.68 a barrel.
The European Stoxx 600 index rose 0.6% in a late session driven by energy stocks.
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