US equities have started the week strongly as bond yields eased from last week’s highs early Monday.
Two positive developments over the weekend have also boosted investors: the U.S. house approved the Biden administration’s pandemic relief package on Saturday, before the Food and Drug Administration granted emergency permission to Johnson & Johnson’s JNJ,
COVID-19 vaccine: the first single dose available to Americans.
The price of bitcoin BTCUSD,
rose more than 5% to $ 47,691 on Monday as it regained ground after the worst cryptocurrency week last year, after hitting a record high of $ 58,332 over the weekend previous.
In ours call of the dayCiti analysts said Bitcoin was at a “turning point” between general acceptance or a “speculative implosion.” But recent developments, including TSLA from electric car maker Tesla,
$ 1.5 billion investment and movements of PayPal PYPL,
Visa V,
and Mastercard MA,
to accept payments, pointed to the first.
Analysts, led by Citi GPS managing editor Kathleen Boyle, noted that there were “a lot of risks and obstacles” that hindered the progress of the cryptocurrency.
“But weighing these possible obstacles with opportunities leads to the conclusion that bitcoin is at a turning point and we could be at the beginning of a massive transformation of cryptocurrency into the mainstream,” they said.
The report added that bitcoin could end up becoming “the currency of choice for international trade” due to its global reach, neutrality and lack of currency exposure.
The most important changes in recent years have been the shift from a retail-focused effort to “something that seems appealing to institutional investors,” the authors noted.
If recent efforts lead to a digital currency backed by the central bank, individuals and businesses would have digital wallets with a lot of cryptocurrencies just like today, with checking, savings and treasury accounts, they said. “In this scenario, Bitcoin can be optimally positioned to become the preferred currency for world trade,” they added.
However, obstacles along this path include upgrades to the market and the potential for the cryptocurrency space to approach the supervision and rules of traditional financial regulators, Citi noted.
The markets
US equities made significant early gains, with the Dow Jones Industrial Average DJIA,
2%, or 620 points, higher shortly after opening. The S&P 500 SPX,
and the Nasdaq Composite COMP,
they were also up. European stocks rose and Asian markets rose overnight in hopes of Biden’s U.S. stimulus package and after last week’s liquidation.
The buzz
Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, said he would have “no doubt” about getting Johnson & Johnson’s COVID-19 vaccine, and that the three vaccines available for to the Americans they were “highly effective.”
Reddit chief executive Steve Huffman reiterated his praise for the WallStreetBets forum that has posted Wall Street’s “meme stocks” in recent weeks. Huffman said the community “exposed a gap” between those who have access to financial markets and those outside.
UK housing builders rose on Monday, reports say the government will try to increase property with a new mortgage guarantee.
Cruise operator Royal Caribbean Group said it had launched a $ 1.5 billion public offering.
The owner of Ladbrokes Entain ENT,
he said it increased its bid for rival Swedish sports betting company Enlabs.
At the Golden Globe Awards, “The Crown,” “Schitt’s Creek” and “Nomadland” were one of the big winners.
Random readings
Baked trophy by actor Ben Stiller and other prominent Golden Globes.
The doctor appears in the court video call while performing surgery.
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