Dow Jones declines for the second day in a row…and Bitcoin continues to shine

The Dow Jones Industrial Average of US stocks fell today, Tuesday, for the second day in a row, after rising strongly in the first days of the last months of the year, while eyes look to the end of the year, with increasing investor demand for high-risk assets, which allowed the cryptocurrency Bitcoin to record… Highest levels since April 2022.

By the end of trading on the second day of the week, the most famous index in the world had lost nearly 80 points, representing 0.22% of its value at the start of today’s trading, and the S&P 500 index declined by 0.06%, while the Nasdaq index collapsed from the red zone, rising by 0.31%, With the increase in investors’ appetite for shares of technology companies, which dominate the index.

As appetite for risk increased, Bitcoin continued to shine today, Tuesday, exceeding the level of $44,000 per unit, for the first time since April 2022.

The price of the most famous cryptocurrency in the world stabilized, on Tuesday evening, above the level of $44,000 per unit, according to Coin Metrics, in addition to the gains of the previous day, in which the drumbeat rose to allow the issuance of the first Bitcoin spot trading fund in the United States.

During today’s trading, Bitcoin was trading at a high level of $44,903.45, which is its highest level since April 7, 2022.

In Europe, German stocks hit a new record high on Tuesday, driven by gains in the manufacturing and insurance sectors, while data showed that the decline in the services sector in the euro zone’s largest economy slowed in November.

The German DAX index jumped 0.8%, supported by gains by Allianz and Daimler Truck Holding. The STOXX 600 index of European stocks closed up 0.4%.

The German index has jumped about 18.7% so far this year, exceeding the gains of the broader STOXX 600 index, which amounted to 10%.

A survey showed that business activity in Germany and in the euro zone as a whole contracted in November, but it contracted at a slower pace than the previous month.

Meanwhile, Isabelle Schnabel, of the European Central Bank, indicated that raising interest rates was “rather unlikely” after an unexpectedly large decline in inflation, which led to a sharp decline in bond yields.

Real estate stocks, which are highly sensitive to interest rates, topped sector gains in Europe, rising 1.8%.

Relatedly, oil prices fell close to the lowest level in five months, upon settlement on Tuesday, due to fears of declining demand, the strength of the dollar, as well as doubts surrounding the production cuts announced by the OPEC+ alliance last week.

“The OPEC+ agreement did little to support prices, and given the decline over the four days that followed, traders were clearly unaffected by it,” Craig Erlam, chief UK, EMEA analyst at OANDA, told Reuters.

Brent crude futures fell 83 cents, or 1.1%, to $77.20 per barrel upon settlement, and US West Texas Intermediate crude futures fell 72 cents, or 1%, also to $72.32 per barrel.

This is the worst performance for both crude oil prices at settlement since July 6. As for West Texas Intermediate crude, this is the first time that prices have declined for four consecutive days since last May.

The decline in prices comes despite comments by Russian Deputy Prime Minister Alexander Novak that OPEC+ is ready to further reduce oil production in the first quarter of 2024 to get rid of “speculation and fluctuations” if the current measures to reduce production are not enough.