ASX below 7000 – Monday and Tuesday saw the ASX fall a whopping 3%, reaching below 7000, its lowest point in 8 months. A mix of rising tension in Ukraine and an inflation shock escalating nerves around interest rates were the major cause of the second biggest sell off of Australia shares this year. The ASX has now fallen 6.5% this year, reaching correction territory on Thursday.
Bitcoin new floor – Global stocks aren’t the only falling asset at the moment. Bitcoins continued fall has forced investors to consider $US30,000 as the new base line. The worlds largest digital asset has continued to break through technical support levels and is not 50% below its November peak.
Interest rates – The US Federal Reserve has signalled that interest rates will begin to rise in March. Main US indices fell following the announcement, with the S&P 500 down almost 1%, closing on Tuesday at its lowest level since October.
Tesla Slump – After a volatile week on global markets, Wall street began to rally on Thursday, but was fizzled out as investors dumped Tesla, which fell 11%, dragging the tech sector with it. The sell off wiped more then $150 billion from its market cap. Tesla is now down more than 25% for the year.
US Economy Expansion – The US economy has expanded almost 7% in the final quarter of 2021. Three times as much as Q3 and well above the forecasts of 5.5%. The growth was driven by private inventory investment, exports and personal consumption. This is the United States strongest economic growth since 1984. US output is not 3% above pre-COVID levels.
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