Over the past day, the value of Bitcoin (BTC) has increased by almost 1% and approached the level of $60000. This was the first time in two weeks. Another historical record for the price of Bitcoin was recorded on March 13. Then the BTC was able to overcome the level of 61000 dollars. It rose to $61844. Then began a fairly strong fall in the correction. On March 25, the cryptocurrency fell in price to $50427. Compared to the record high, the value of Bitcoin has decreased by almost 23%. After that, the market began to win back the lost positions. However, he managed to return to the level of $60000 only in recent days.
US Federal Reserve do not expect a sharp increase in inflation
Large financial injections into the US economy will not lead to a sharp increase in inflation. According to representatives of the Federal Reserve. This point of view, in particular, was expressed by the head of the Federal Reserve Bank of Chicago, Charles Evans. Eric Rosengren, who heads the Boston Fed, also said that there may be some growth in consumer prices in the coming months, but it will not be very significant. Most likely, the increase in inflation will be observed for a short period of time. The statements of the representatives of the Federal Reserve are a response to criticism of the government's actions by some economists. They believe that the allocation of such a large amount of funds to support the economy will lead to a sharp increase in prices. The head of the US Federal Reserve, Jerome Powell, also rejects the existence of serious risks associated with inflation. He added that the stimulus package proposed by Biden is necessary in order to stabilize the situation in the country's labor market. Full employment must be achieved. Jerome Powell and other representatives of the regulator believe that it is too early to discuss reducing the volume of the asset purchase program.
The growth of Silver over the past year has 18 times exceeded the rate of Gold price appreciation.Demand for Silver may rise to a six-year high this year amid increased industrial use of the precious metal and rising inflation.Over the past 12 months, Gold has risen by 4.3%, while prices have fallen by 6.5% since the beginning of this year. Silver has gained 78% in price over the year. This is the best indicator among precious metals (Palladium +60%, Platinum +59%).Since November, investors have been steadily reducing their investments in Gold ETFs (Exchange-Traded Funds). The volume of investments has fallen to about the same level as it was a year ago. However, in the case of silver, the situation is different: over the year, investments in Silver ETFs increased by a third.Global demand for Silver in 2021 will grow by 11% to 1.025 billion ounces, the Silver Institute predicts. The main driver of growth will be the improvement of the macroeconomic indicators of the world economy. Demand for physical Silver could rise to a six-year high of 257 million ounces.The company Heraeus Precious Metals recently published an analytical review, which notes that silver will show a better return in percentage terms this year than Gold.The rise in Silver prices will be supported by inflation and industrial demand, as the global economy gradually recovers from the effects of the spread of Covid-19. The precious metal is in demand in the electronics sector, as well as in the production of solar panels.In addition, precious metals are an excellent means of protecting your savings from inflation, especially during a crisis. In case of growing concerns about further acceleration of inflation, the demand for silver as a protective asset from investors will increase.
The US Dollar (USD) declined on Forex for most of April amid investor confidence in the global economic recovery.However, May has arrived-historically the most favorable month for the US currency in the year.USD has not grown against other reserve currencies for a month — a record long time since last summer, writes the Financial Times. This is a consequence of investors' optimism about the pace of global economic recovery after the pandemic.In April, amid the acceleration of vaccination rates in the EU and growing optimism about the global economy, US Dollar Index lost 2.7% of its value, while currencies linked to commodity assets showed the greatest growth.Meanwhile, May is traditionally the most favorable month for Dollar in the year, according to ANZ Bank.According to the bank, the DXY dollar index historically shows the strongest dynamics in the recent month, and the worst month of the year for the US currency is April.On Friday, we already saw a corresponding hint, when EUR/USD on Forex fell by a record for more than a year, thanks to the rebalancing of portfolios, timed to the end of the month. All this helped the DXY to return above the 100-day MA.The end-of-month pull to USD and the April profit-taking on raw materials and stocks on Friday showed up in full force. However, the strengthening of the dollar does not go beyond the technical correction rebound after a month-long decline. The continuation of the trend for the sale of the US currency on growth can return to the game this week.
Markit Economics published its final estimate of business activity in the industrial sector of the euro zone economy in April. It was worse than the forecast of the surveyed analysts. The PMI rose by 0.4 points to 62.9 points compared to the March reading. At the same time, analysts expected the index to increase by 0.8 points to 63.3 points. Despite this, the indicator became the highest in the entire history of its calculation, that is, since 1997. Exceeding the critical level of 50 points indicates the expansion of industrial production in the euro area. The indicators calculated for the largest European economies showed a negative trend in April. Thus, PMI in the German industry fell by 0.4 points to 66.2 points, while the forecast for a decline of 0.2 points to 66.4 points. PMI in the industrial sector of the French economy also fell by 0.4 points to 58.9 points. At the end of last week, statistics on German GDP were released. It shows that the country's economy contracted in the first quarter by 1.7% compared to the previous three months and by 3% year-on-year.
US futures foreshadow positive trading on Wall Street on May 3, 2021
Investors from the Asia-Pacific region are keeping an eye on the COVID-2019 situation in India as the country continues to struggle with the second wave of infection. Over the past weekend, more than 400 thousand new cases of the disease were registered - this is a new anti-record. Hong Kong's Hang Seng index fell 1.34% to 28,339.87 points, while Korea's KOSPI fell 0.66% to 3,127.2 points. Markets in mainland China and Japan are closed on Monday due to the holidays. Oil prices are also declining: Brent futures fell by 0.12% to $66.63 per barrel, Light - by 0.2% to $63.45. The slowdown in business activity in China, as well as the difficult situation with the coronavirus in India, are putting pressure on prices. US and European index futures are rising ahead of the first trading day in May. Futures for the US S&P index are up 0.53%, investors have bet on a significant recovery in the economy and profits after the pandemic. Today, investors will be watching the US manufacturing PMI data for April, as well as reports from Lowe's, Estee Lauder and ON Semiconductor. Futures for the pan-European STOXX Europe 600 Index rose 0.55%, following the US Dollar. The UK market is closed today.
Shares of Facebook rose almost 8% after the report
The American company Facebook, which owns the world's largest social network of the same name, published a report for the first quarter. According to the report, all quarterly financial indicators of the company exceeded the forecasts of economists. Annual sales growth was recorded at 48%. The number of active users of the network amounted to 2.85 billion people, an increase of 10% compared to the first three months of the previous year. The experts' forecast assumed this figure at the level of 2.83 billion users. Quarterly revenue was $26.2 billion, also beating market expectations. Net income for the quarter jumped to $9.5 billion. On a per-share basis, it was $3.3, while economists had expected it to be $2.34. The price for advertising in the social network has increased on average by 30% over the year. The number of ads shown in April increased by 12% year-on-year. After the release of the quarterly reports, Facebook shares on the premarket reached $331.56, having increased in price by almost 8% over the day. Since the beginning of the year, the company's shares have increased by 12%.
Amazon's net profit during the crisis was higher than the total profit for the previous three years. According to the results of the 12-month period ended on March 31, it reached $26.9 billion. At the same time, the company's total net profit for the period from 2017 to 2019, inclusive, amounted to $24.7 billion. In the 1-st quarter of this year, Amazon's net income more than tripled year-on-year to $8.1 billion, or $15.79 cents per share. Revenue reached $108.5 billion, which is 44% more than in the corresponding quarter of the previous year. The company expects that in the 2nd quarter, revenue will exceed the amount of $100 billion for the third time in a row. It will be in the range of $110 billion to $116 billion. Thus, the indicator will show an increase of 24-30% in relation to the volume of revenue in the second quarter of last year. Amazon's market cap has increased to $1.74 trillion, or 47%, over the past 12 months. After the release of the report, the company's securities began to grow in price.
The current week began with a decline in quotations amid growing concerns about the demand for raw materials. Today morning Brent crude was trading at $65.20 per barrel, 0.34% lower than the price of this brand at the close of the previous trading session. WTI crude oil fell by this time to 61 dollars 98 cents per barrel, or 0.26%. Bidders are concerned about the epidemiological situation that is observed in some countries. So, in India, the number of infections during the day has increased dramatically. And this country is included in the list of the largest consumers of oil. The difficult situation associated with the coronavirus is still observed in Japan. The tightening of restrictive measures will put pressure on the quotes. A regular meeting of the OPEC + deal participants is scheduled for this week. During the upcoming meeting, an assessment of the situation on the world oil market will be given. According to Alexander Novak, who holds the post of Deputy Prime Minister in the Russian government, the current market situation can be considered balanced.