The end of the trading week and first quarter of 2018 is here. First three months proved to be pretty hard on the markets and traders, taking off price from a lot of major stocks and indices. Crypto was also a subject to losing price. But it seems that there is a lot expected from the second quarter of the year.
First quarter of 2018 is over – what are the results?
First three months of 2018 proved to be hard on the traders and the markets. Especially strong hits were visible on the Asian market which didn’t see a single week without rapid falls or gains. But there is a strong hope that spring, as usually will bring better results to the equity markets.
According to the market researchers spring and, especially April is a high season in the trading rooms. This year $400 billion is to come back to the investors in April and May. On the contrary long-term Treasuries are the worst assets that can be held by the traders in spring. Returns from long Treasuries in spring usually tend to display numbers lower than average.
Previous quarter was quite hard on equities and shares with rise in January and rapid fall in February seen with various indexes and stocks. Past couple of weeks was marked by the selloff in technology stocks.
Tom Lee asks to hold onto crypto while its falling.
Tom Lee, the founder of Fundstrat Global Advisors was always a pro-crypto man. After all the falls, taken by the crypto markets he is still advising the investors to wait and not sell their digital coins as the worst is already behind us. But these claims are hard to believe, especially knowing that tonight Bitcoin took a plunge below $7000.
Together with Bitcoin altcoin lost their positions as well. According to the numbers from CoinMarketCap resource crypto market cap has lowered from $800 billion to $256 billion which is a 70 percent decline for the crypto market.
Meanwhile Etherium dropped below $400 – the lowest point for the coin since last fall.
North Korea denuclearization delays trade agreement.
Yesterday American President Donald Trump said that he will hold trade agreement with South Korea until the talks with North Korea on the country’s denuclearization are over. President said that it is very important that everyone “is treated fairly”.
Earlier in the week South Korean and American officials have agreed to revise their free trade agreement that was signed in 2012. The deal included a more open access for American car and drug makers to Korean market. In exchange Korea got free pass from American 25 percent tax for steel export into the USA. Agreement needs to be renewed by the May 1, otherwise all the privileges will be lifted.
Trumps’ alleged meeting with Kim Jong Un is to take place in the end of May.
Stocks, currencies and crude overview.
As the end of the first quarter of 2018 is coming to an end markets seem better. Asian stocks went up giving traders hope for better performance later in the spring.
MSCI Asia Pacific Index went up 0.5 percent.
Japanese Topix index also went up 0.7 percent although its performance for the quarter could be better – Topix is now 5.6 percent lower than in the beginning of the year.
MSCI All Country World has experienced its first unfortunate quarter since the beginning of 2016 finishing with numbers 1.3 percent lower than in the beginning.
Dollar is 0.1 percent lower against the basket of six major currencies.
Yen in its turn 0.2 percent higher – 106.19 yen per dollar.
Euro went up 0.2 percent as well - $1.2318.
WTI is having a bright performance gaining 0.9 percent of per barrel price and rising it to the the price of $64.94.
Gold fell 0.05 percent - $1325.48 per ounce.
