Marketmind: Bank man fried
Reuters
Published Nov 09, 2022 01:02AM ET
A look at the day ahead in European and global markets from Tom Westbrook
Six billion dollars of withdrawals in 72 hours have sent cryptocurrency exchange FTX into the arms of larger rival Binance and crypto markets into a new tailspin.
"We are in the best of hands," FTX founder Sam Bankman-Fried said on Twitter, after announcing a bailout that has not quite soothed market jitters. Bitcoin was falling in Asia on Wednesday, so was FTX's collapsing token and Binance's token had the wobbles.
Broader markets were steady.
Just a few months ago it was FTX scooping up wounded competitors at a discount. Its fall is perhaps another case of the cautionary "stadium curse".
As Spectra Markets' Brent Donnelly and others have previously noted, naming rights are a reasonable signal of irrational exuberance. Enron's 30-year rights deal for a baseball field in Houston lasted three years.
FTX's 19-year deal for naming rights at the Miami Heat basketball team's home arena looks to face a similar fate, as does its sponsorship of the Mercedes F1 team. Spillover to other asset classes is so far limited.
Currency markets were calm in Asia trade, with investors waiting for more conclusive results from the U.S. midterm elections - which could take days - and positioning ahead of U.S. inflation data on Thursday.
China's factory gate prices dropped for the first time since December 2020, and consumer inflation moderated, underlining faltering domestic demand. Japanese manufacturing optimism dropped to a 22-month low.
U.S. and European futures were steady. MSCI's broadest index of Asia-Pacific shares, excluding Japan, nudged higher.
Graphic: Stadium curse - https://fingfx.thomsonreuters.com/gfx/mkt/lbvggrajbvq/Pasted%20image%201667963950317.png
Key developments that could influence markets on Wednesday:
U.S. midterm results, RBA deputy governor speech, ECB's Elderson appears on a panel, U.S. 10-year Treasury auction
Earnings: Swiss Life, Adidas (OTC:ADDYY), ITV (LON:ITV), Taylor Wimpey (LON:TW), Commerzbank (ETR:CBKG), M&S, Poste Italiane, Telecom Italia (BIT:TLIT).
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.