Markets are slipping as the run on digital asset exchanges continues to wreak crypto havoc

Shares fell earlier in the week as investors took a break from last week’s big rally and digested a slew of corporate and economic news. Major stock indexes came off their lows after Federal Reserve Vice Chairman Lael Brainard indicated that the central bank may soon be slowing the pace of its rate hikes, bringing some solace to the market.

Looking ahead, the third quarter earnings season continues with a strong focus on retail. Major retailers Walmart, Home Depot, Target, Lowe’s, Macy’s and Kohl’s are all scheduled to release numbers this week.

Ahead of Brainard’s comments, shares briefly fell near session lows after reports that Amazon will lay off about 10,000 employees as early as this week.

The Dow Jones Industrial Average fell 0.6%. The broader market S&P 500 was down 0.9% and the Nasdaq Composite fell 1.1%.

Chinese stocks continued to outperform the broader index as the easing of COVID restrictions improves sentiment towards China.

And digital asset exchanges are rushing to reassure customers their funds are safe as the collapse of Sam Bankman-Fried’s crypto exchange FTX bounces through the industry. Binance, the world’s largest crypto exchange, along with smaller rivals like Crypto.com and US-listed Coinbase, have promised to release proof that they have sufficient reserves to cover their liabilities to customers.

FTX had less than $1 billion in easy-to-sell assets versus $9 billion in liabilities before it went bankrupt on Friday, the Financial Times reported.

The sudden collapse last week of FTX and Bankman-Frieds trading shop Alameda Research, once seen as pillars of the industry, has severely eroded confidence in the digital asset market.

And it seems investors are happy to be long leveraged right now, as fund inflows into leveraged ETFs are hitting record levels — with $18.5 billion flowing year-to-date — a record level.

All sectors were red on the board with the exception of Health Care, which closed flat.

Shares of Moderna surged over 4.5% after the COVID-19 vaccine maker said tests show its boosters are effective against subvariants of the virus.

And shares of Opiant Pharmaceuticals soared 114% after maker of the overdose-reversal drug, Narcan, announced it is being bought by British drugmaker Individual for about $145 million.

And oat-based beverage maker Oatly plunged more than 12.5% ​​after the company reported a larger-than-expected quarterly loss and earnings that fell short of consensus. Oatly cited Covid restrictions, manufacturing issues and a stronger US dollar as reasons for China’s poor performance.

currencies

One Australian dollar was down against the US dollar as of 8:15 am yesterday, dropping 67.01 US cents (Monday: 68.69 US cents), 57.03 pence sterling, 93.71 yen and 64.90 euros -Bought cents.

raw materials

Iron ore futures point to a 0.4 percent gain.

Gold was up $5.40, or 0.3 percent, to $1774.80 an ounce.

Silver was up $0.40, or 1.8 percent, to $22.07 an ounce.

Copper fell $7.85, or 2 percent, to $383.50 a pound.

Oil slipped $3.75, or 4.2 percent, to $85.21 a barrel.

futures

SPI futures are pointing to a 0.5 percent decline.

numbers around the globe

On the other side of the Atlantic, European markets closed higher. Paris gained 0.2 percent, Frankfurt 0.6 percent and London’s FTSE closed 0.9 percent higher.

In Asian markets, Tokyo’s Nikkei fell 1.1 percent, Hong Kong’s Hang Seng gained 1.7 percent and China’s Shanghai Composite fell 0.1 percent.

Yesterday, the Australian stock market lost 0.2 percent to close at 7146.

ex-dividends

thick data (ASX: DDR) paid 13 cents fully franked
National Bank of Australia (ASX:NAB) paid 78 cents fully franked
Plato Income Maximizer (ASX:PL8) paid 0.55 cents fully franked
QV Shares (ASX:QVE) paid 1.3 cents fully franked

dividends

auto sport group (ASX:ASG)
edge mining (ASX:RND)
Tribune Resources (ASX:TBR)
Waypoint REIT (ASX:WPR)

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Stock Market Data, Trading Economics, CoinMarketCap.

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