Mati Greenspan, Senior Market Analyst at FX broker eToro, has provided his daily commentary on traditional and crypto markets for May 15, 2019. The text below is an excerpt and does not contain the full analysis.
Today’s Highlights
- Weak Chinese Data; Strong Stocks
- Tokenizing Metals
Please note: All data, figures & graphs are valid as of May 15th. All trading carries risk. Only risk capital you can afford to lose.
Traditional Markets
The stock markets are doing just fine this morning despite the current trade war between the US and China, possibly due to the recent weak economic data from China.
Wait what?!
Yeah, data from China out this morning showed that retail sales, industrial production, capital investments, and even unemployment were all much worse than economists were forecasting. Important to note that this data reflects the period before the recent tariff hikes.
Bad news for the economy is good for the markets though. The expectation is that the People’s Bank of China will likely come to the aid of the market with additional stimulus measures.
Here we can see the reaction in the China50 index. The purple circle is the precise time of this morning’s data dump.
This is strong confirmation bias for me. Trade doesn’t matter, politics don’t matter, the economy doesn’t matter. Keep your eyes on the central banks. They’re the ones who control the money and the markets.
XRP Outperforming
By popular demand, let’s take a look at the most popular cryptoasset on the eToro platform, which has been outperforming over the last week.
Here we can see the top seven cryptos by market cap. XRP is the white line.
It did take a while for XRP to join the party this time. Unlike some of the other large-cap altcoins, it did not get a chance to surge during the recent altseason.
On the other hand, it also didn’t see much of a plunge while the rest of the crypto market was going through capitulation back in November. Though it did fall during that timeframe, it did manage to hold firmly to its previous level of support at $0.25 per coin, thanks to a massive surge when the xRapid platform was released in September.
Mati Greenspan can be found on LinkedIn, Twitter, or etoro.
This is a marketing communication and should not be taken as investment advice, personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. This material has been prepared without having regard to any particular investment objectives or financial situation, and has not been prepared in accordance with the legal and regulatory requirements to promote independent research. Any references to past performance of a financial instrument, index or a packaged investment product are not, and should not be taken as, a reliable indicator of future results. eToro makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared utilizing publicly-available information.