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Economic digest 19.04.2021

Trading in Australia

Australia stocks were higher after the close on Monday, as gains in the Gold, Metals & Mining and Materials sectors led shares higher.

At the close in Sydney, the S&P/ASX 200 gained 0.03% to hit a new 52-week high.

The best performers of the session on the S&P/ASX 200 were Sims Metal Management Ltd (ASX:SGM), which rose 8.95% or 1.36 points to trade at 16.56 at the close. Meanwhile, AP Eagers Ltd (ASX:APE) added 4.57% or 0.71 points to end at 16.25 and Resolute Mining Ltd (ASX:RSG) was up 3.88% or 0.020 points to 0.535 in late trade.

The worst performers of the session were Zip Co Ltd (ASX:Z1P), which fell 4.49% or 0.42 points to trade at 8.94 at the close. Pointsbet Holdings Ltd (ASX:PBH) declined 4.11% or 0.56 points to end at 13.08 and National Storage REIT (ASX:NSR) was down 3.62% or 0.080 points to 2.130.

Shares in Sims Metal Management Ltd (ASX:SGM) rose to 52-week highs; gaining 8.95% or 1.36 to 16.56. Shares in AP Eagers Ltd (ASX:APE) rose to all time highs; rising 4.57% or 0.71 to 16.25.

The S&P/ASX 200 VIX, which measures the implied volatility of S&P/ASX 200 options, was up 5.25% to 11.670.

Japan stocks were higher after the close on Monday, as gains in the Paper & Pulp, Railway & Bus and Real Estate sectors led shares higher.

At the close in Tokyo, the Nikkei 225 added 0.01%.

The best performers of the session on the Nikkei 225 were SUMCO Corp. (T:3436), which rose 5.66% or 152.0 points to trade at 2839.0 at the close. Meanwhile, Yamato Holdings Co., Ltd. (T:9064) added 3.32% or 98.0 points to end at 3050.0 and Seiko Epson Cor (T:6724) was up 2.98% or 57.0 points to 1970.0 in late trade.

The worst performers of the session were Shiseido Co., Ltd. (T:4911), which fell 4.13% or 331.0 points to trade at 7675.0 at the close. ANA Holdings Inc (T:9202) declined 3.64% or 89.5 points to end at 2370.0 and Toho Co., Ltd. (T:9602) was down 3.38% or 160.0 points to 4575.0.

Falling stocks outnumbered advancing ones on the Tokyo Stock Exchange by 1816 to 1691 and 231 ended unchanged.

Shares in SUMCO Corp. (T:3436) rose to 52-week highs; up 5.66% or 152.0 to 2839.0. Shares in Seiko Epson Cor (T:6724) rose to 52-week highs; up 2.98% or 57.0 to 1970.0. The Nikkei Volatility, which measures the implied volatility of Nikkei 225 options, was unchanged 0% to 17.57.

World shares traded near record highs on Monday, as markets were generally upbeat about the prospects for a global economic recovery from COVID-19, ahead of a busy week for earnings.

Europe’s STOXX 600 reached a record high and was up 0.2% at 0736 GMT. Asian shares hit one-month highs overnight.

MSCI world equity index, which tracks shares in 49 countries, was flat on the day, having come close to but not surpassed Friday’s record high. MSCI’s main European Index was up 0.1%.

Matthias Scheiber, global head of portfolio management at Wells Fargo (NYSE:WFC) Asset Management cited low interest rates, the rollout of COVID-19 vaccines and the fiscal stimulus package in the United States as reasons for his bullish stance on equities.

Earnings from IBM (NYSE:IBM) and Coca-Cola (NYSE:KO) are due later in the session. Netflix (NASDAQ:NFLX) reports on Tuesday. Later in the week, American Airlines (NASDAQ:AAL) and Southwest will be the first major post-COVID cyclicals to post results.

The European Central Bank meeting on Thursday will also be in focus this week.

ECB President Christine Lagarde said last week that the euro zone economy is still standing on the “two crutches” of monetary and fiscal stimulus and these cannot be taken away until it makes a full recovery.

Euro zone government bond yields were lower, with the benchmark German 10-year yield down one basis point at -0.27%.

The benchmark U.S. Treasury yield, which dropped as low as 1.528% last Thursday, was at 1.5606%.

The U.S. economy is set to take off this year as more Americans get COVID-19 vaccinations and become comfortable engaging in a wider range of activities, but any accompanying spike in inflation is likely to be temporary, the Federal Reserve’s newest board member said on Friday.

In currency markets, the dollar index was down 0.4% at its lowest levels in more than a month, at 91.259, having weakened since its recent peak of 93.439 at the end of March.

Dollar-yen was also down 0.5%, changing hands at 108.250.

The euro was up 0.3% versus the dollar at $1.20165.

DoubleVerify Holdings: Digital media measurement and analytics company DoubleVerify Holdings (NYSE: DV) plans to sell 13.3 million shares at a price point of $24 to $27.

The company makes security software for digital advertising and claims to have over 1,000 advertisers and publishers as partners, and more than 45 customers that each account for $1 million in annual revenue for DoubleVerify.

The company had revenue of $244 million in fiscal 2020, a year-over-year increase of 34%.

NeuroPace: Commercial-stage medical device company

NeuroPace (NASDAQ: NPCE) says it has the first and only commercially-available, brain-responsive system to help fight seizures.

The company’s target market is customers who have drug-resistant epilepsy. Over 3,000 patients were served by the company through 2020. Neuropace had revenue of $10 million in fiscal 2020 and is guiding for fiscal 2021 revenue of between $11.1 million and $11.3 million.

UiPath: The biggest IPO of the week is set to be automation company UiPath Inc (NYSE: PATH), with a planned offering of 21.3 million shares at a price point of $43 to $50.

The company “makes software robots so people don’t have to be robots.” The company had annual recurring revenue of $580 million in the fiscal year ended January 31, 2021, for a growth rate of 65%. UiPath says it has over 7,900 customers, with over 1,000 of them paying $100,000 or more annually to the company.

The company is targeting a market opportunity of $65 billion and believes its open architecture and end-to-end platform set it apart from competitors.

SkyWater Technology: Pure-play technology foundry

SkyWater Technology (NASDAQ: SKYT) offers semiconductor development and manufacturing services, targeting customers in markets like advanced computing, aerospace, defense, automotive and IoT.

The company has 35 customers in its advanced technology services including L3Harris and Microsoft Corporation (NASDAQ: MSFT). SkyWater was divested from Cypress Semiconductor in 2017. The company had revenue of $140.4 million in 2020.

Over the weekend, Bitcoin lost over $7,000 in a matter of minutes, pulling most of the top cryptocurrencies with it.

Recall that the leading cryptocurrency reclaimed the $60k mark and set a new all-time high just a few days ago. But while many analysts were predicting new highs, things took a different turn on Sunday. Bitcoin took a massive price action knock after an outage in the Bitcoin hash rate. Within an hour, the price of the digital asset lost over $7,000, eventually plunging to a low of around $52,000. Consequently, about $10 billion was liquidated on the trading day.

Several theories have tried to give reason to the recent crash. While some blame the hash rate crash caused by a major power outage in China, others are pointing to rumors of upcoming crypto regulations from the United States.

As such, the downward price trajectory is a temporary one. Bitcoin would recover as soon as the hash rate bounces back.

Canadian regulators approved the launch of the Purpose Ether ETF, CI Galaxy Ethere ETF and EVOLVES ETHER ETF — first in the world of stock investment funds (ETF) based on Ethereum from Purpose Investments, CI Global Asset Management and Evolve Funds, respectively.

Subcastodian Purpose Ether ETF became Gemini Brothers Winclossov. The CIBC Mellon Global Securities will be performed by the Fund administrator, and Ether Capital will consult.

CI Galaxy Ethereum etf will start on the Toronto Stock Exchange provided it approval. The Foundation plans to charge a commission for a 0.4% management committee. His consultant will perform cryptobank Galaxy Digital Mike Novogratz.

Subcastodian Evolves Ether etf became Gemini. On April 20, the company plans to launch the Toronto Stock Exchange Tool.

Canada approved the launch of the world’s first stock investment funds based on the second on capitalization of cryptocurrencies two months after registering the first Bitcoin-ETF. Then the application PURPOSE INVESTMENTS was considered.

Recall, in March, Canada approved the launch of the Bitcoin-etf from Ci Global Asset Management and Galaxy Digital. Later, Brazil registered the first Fund on the basis of the first cryptocurrency in Latin America.

The US Securities and Exchange Commission began considering Vaneck investment firm applications and Wisdomtree Management Assets to launch Bitcoin-ETF.

In addition to them, the application for the launch of the Extermination Fund based on digital gold was Nydig, BitWise, Valkyrie Digital Assets, Kryptoin, Skybridge Capital with First Trust Advisors, Fidelity Investments and Galaxy Digital.

Mike Novogratz entered the conflict with the Ripple XRP community after questioned the growth in the price of tokens.

Michael Novogratz — American trader, hedge fund manager

CEO of Galaxy Digital Mike Novogratz explained his comments about Ripple XRP after receiving criticism from the token community. In a recent interview with Bloomberg, the billionaire called Dogecoin an example of a retail foam of the Novogratz also said that Ripple XRP growth did not make sense for him, as against his issuer, Ripple, a lawsuit was served by the Securities and Exchange Commission.

Lawyer John E. Diton, heading the efforts of the XRP community to intervene in the Ripple litigation with SEC, warned the Novogratz that the next goal of the agency could become Ethereum. In response to complaints, the margraves stressed that it is generally a major ripple shareholder:

The Ripple XRP community in response hurried to indicate that sec has not yet determined the security status of Ethereum. Indeed, Dugan Bliss, Senior Judicial Advisor SEC, recently explained that the agency did not occupy the official position on this:

Previously, it was known that Bank Saudi Arabia signs a deal with Ripple.

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