Global Stocks March Higher, Trump’s Trial to Begin Wednesday
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- Global stocks tick up on Wednesday
- Donald Trump’s impeachment trial to start today
- Cryptocurrencies remain well bid, US dollar extends the decline
NASDAQ the Clear Winner as Global Stocks Tick Up
Stock futures on Wednesday point to the upside as investors remain optimistic towards an economic rebound once the US fiscal stimulus is approved. Stocks across the globe traded fairly muted on Tuesday. European markets closed Tuesday’s session mixed, DAX lagging behind, down 0.34%, while the FTSE100 and the CAC40 were up 0.12% and 0.10%, respectively.
The US equity market on Tuesday closed the session relatively flat, while futures indicate investors’ risk sentiment remains fairly strong. The Dow Jones Industrial Average closed yesterday’s session down by 9.93 points, or 0.03%, while the S&P500 closed negative by 4.36 points or 0.11%. The Nasdaq Composite was the only winner, up 20.06 points, or 0.14%.
Trump’s Impeachment Trial Begins
As Wednesday’s trading session is due to start, investors will keep an eye on the developments in Washington today where Donald Trump’s impeachment trial is set to begin. The US Senate already voted to proceed with the trial and only 6 out of 50 Republican Senators voted in favor of the motion. The overwhelming Republican majority backed Mr. Trump. The 56-44 vote in support of the trial sets the stage for the Democrats to lay out their arguments against the former President.
Even though Donald Trump is no longer in office, he could still be tried but it is now unlikely that he will be convicted at the end of the trial, given that conviction requires a majority of two-thirds of the 100 members of the Chamber. Mr. Trump was impeached by the House of Representatives last month when 10 Republicans sided with Democrats. The former President is the first US President to be impeached twice and the first one to be tried after leaving office.
Bitcoin Buying Frenzy Halts
Elsewhere, bitcoin pulled back from record highs today. The Tesla-fueled rally appears to be taking a breather as the price has relaxed near the all-time high and is now hovering around $46,000. The buying frenzy after Tesla revealed it holds $1.5bn worth of bitcoin shot the price to a historical top of nearly $48,000. The second-largest cryptocurrency, Ethereum, also made a new record this week. It peaked above $1,830 and still remains near record levels, trading around the $1,800 mark. Other cryptocurrencies, also called altcoins, have been witnessing positive buying momentum in recent days. The total valuation of the cryptocurrency market closes in on $1.5tn. Currently, at $1.4tn, the crypto market cap has nearly doubled this year while bitcoin’s market share has been gradually coming down. In January, bitcoin held a 69.71% share of the crypto market and today the largest crypto asset has a market share of 60.99%.
Trouble for the Greenback?
Over to the currency market, the US dollar remains under pressure as investors fear rising inflation with the prospects of the new stimulus increases the chances for destabilizing inflation. For a third straight session on Tuesday, the US dollar edged lower against the Canadian dollar and the Swiss franc. The euro advanced against the dollar and reached a 10-day high of 1.2130 early on Wednesday.
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