© Reuters
Investing.com – Cryptocurrencies flinched as Silvergate shut down. Data on US initial jobless claims and Challenger’s survey of job cuts will complete the picture of the labor market. US President Joe Biden will lay out his administration’s budget plans, including a series of measures that will put downward pressure on stock prices. JPMorgan has blamed Jes Staley for being implicated in the Jeffrey Epstein case, and Europe has fallen to its lowest level in 18 months as the Freeport LNG plant was cleared to resume exports. Here’s what you need to know about the financial market on Thursday, March 9th.
1. Cryptocurrencies fell amid the announcement of the liquidation of Silvergate
Cryptocurrencies fell along with stocks associated with this asset class after Silvergate Capital (NYSE:) said it would wind down its operations and return cash to depositors.
Silvergate has been a key banking provider for US cryptocurrency exchanges and it is far from clear how they can find someone else to facilitate the transfer of money between crypto and fiat currencies.
fell to its lowest level in a month, then recovered slightly and was trading at $21,632 by 06:30 ET (1130 GMT), while , and also fell. Other indicators indicated that crypto investors continue to withdraw their money from the cryptocurrency space; while the value of the outstanding turnover has fallen to almost $8 billion – or 50% over the past month, despite the fact that Binance stated that it had nothing to do with Silvergate.
2. Not all is calm in the labor market
The US labor market remains in focus on Thursday after two reports on Wednesday showed only slight signs of cooling.
It is expected to fall below 200,000 again, with Challenger’s job cuts poll coming out an hour before at 07:30 ET.
On Wednesday, the monthly was better than expected at 242,000 in February, while the payroll indicator continued to show wage growth above official estimates. The US Department of Labor, meanwhile, said job openings fell in January – but only from an upwardly revised 11.23 million, a 9-month high.
3. The stock market drifts in a daze after Powell; JPMorgan seeks $80 million return from Epstein partner Staley
American stock indexes will open ambiguously, with difficulty developing dynamics after the warnings of the head of the US Federal Reserve Jerome about the upcoming rate hikes during the two-day speeches on Capitol Hill.
As of 06:30 AM ET, futures for na was virtually unchanged, while na futures were down 0.2% and na futures were down 0.5%. This was a mirror image of the performance of the 3 big money indexes on Wednesday when the Nasdaq was stronger.
A stock that is likely to be in the spotlight later is JPMorgan (NYSE:) which is suing former private bank chief Jes Staley for damages caused by his ties to the now-deceased controversial Jeffrey Epstein. JPMorgan is seeking $80 million from Staley, his entire remuneration from 2006 to 2013. Shares of Barclays (NYSE:), where Staley was CEO until November 2021, fell in premarket trading.
Oracle (NYSE:), Ulta Beauty (NASDAQ:), DocuSign (NASDAQ:) and Gap (NYSE:) will report earnings after the close of trading.
4. Biden will present budget plans
US President Joe Biden will introduce some $3 trillion in deficit-cutting measures in his administration’s new budget plan, as his Democratic allies prepare for clashes in Congress over the national debt ceiling.
According to various reports, Biden will again call for a tax on the wealth of billionaires, as well as taxing share buybacks and internal profits of private equity. These measures have not found support in previous initiatives, leaving cynics to wonder if the budget is really just a stunt to portray Republican opponents as defending a small but wealthy minority.
5. European gas prices hit new low as Freeport LNG gets permission to restart
European gas prices fell to their lowest level since summer 2021 after a major US LNG plant received regulatory approval to resume exports.
The Freeport LNG plant was shut down for several months while the fire was being cleaned up. The fire cut off gas supplies to Europe at the peak of last year’s energy crisis.
TTF futures for the coming months – the benchmark gas price for northwestern Europe fell to 40.50 per megawatt-hour but then rebounded to trade at 41.73 euros per megawatt-hour by 06:45 ET, declining by 1.4% per day.
On the energy market, futures rose by 0.1% to $76.75 per barrel, and by 0.1% to $82.77 per barrel.
Written by Geoffrey Smith
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