U.S. Stock Futures Indicate a Strong Market Open
If it’s any indication, the U.S. stock futures are pointing towards a strong open on Tuesday as investors return from a long weekend. Eyes will be on the Dow Jones as it nears the 26,000 point barrier. The blue-chip index closed above 25,800 last Friday. Meanwhile, this week will feature a stream of earnings reports. Citigroup (C) and United Health (UNH) are reporting on Tuesday.
World’s Big Bourses on Record-Breaking Run
Tuesday is a sizzling day for the markets in Asia and Europe as their respective bourses kept on their record-breaking run. However, on the currency side, the steadier dollar halted the blazing start to the year for the euro, yen and yuan and sent metals markets slumping. The euro slipped and snapped its four-day hot-streak.
MSCI, the all-country world index notched its third consecutive all-time high. The growing confidence about the global economy pushed Japan’s heavyweight Nikkei to its best level since 1991 during a lively Asian session. The pan-European crawled 0.1-0.3% higher, aided by technology and insurance stocks.
AT&T Urged to Cut Commercial Ties with Huawei
AT&T, the U.S. No.2 wireless carrier has been urged by U.S. lawmakers to cut commercial ties to Chinese phone maker Huawei Technologies Co. Ltd. They were also warned by two congressional aides to oppose plans by telecom operator China Mobile Ltd., the world’s biggest mobile phone operator, to enter the U.S. market because of national security concerns.
Senators and House members specifically wants AT&T to cut is its collaboration with Huawei over standards for the high-speed next generation 5G network. Another commercial cut they want is the use of Huawei handsets by AT&T’s discount subsidiary Cricket. The White House is taking a harder line and U.S. firms dealing with China will run the risk of hampering business ties with the U.S. government.
Cryptocurrencies Tumble on Fears of Wider Crackdown
On Tuesday, Bitcoin tumbled 18% to a four week low to of close to $11,000, after reports that the South Korean government is still considering the trading ban of cryptocurrencies and implement a wider regulatory crackdown.
Bitcoin’s slide triggered a domino effect as rival cryptocurrencies suffered a massive selloff too. According to Coinmarketcap, Ethereum went down by 23% while Ripple plunged by 33%. South Korean Finance Minister Kim Dong-yeon had told a local radio station that the government would be coming up with a set of measures to clamp down on the “irrational” cryptocurrency investment craze.
Chinese Consumer Group Seek Answers from Apple
China’s state news agency Xinhua reported that a Chinese consumer group has called the attention of Apple Inc. (AAPL). They are asking for details and information regarding the slowing of older iPhones after the operating system updates. The said group is demanding a reply from Apple before Friday this week.