U.S. Shale Boom Presents Same Old Problem for Energy Markets

Politics often influence the markets and it seems that lately, things are getting particularly exciting.

In a few hours, we will be hosting a live conference on YouTube with some of eToro’s most knowledgeable analysts in each region.

We’ll discuss the latest updates on Brexit, the situation and trading opportunities for the South African Rand, the German coalition, OPEC’s Oil updates, the impact of the new Fed Chief Jerome Powell, and of course the current crypto markets.

Also, we’ve brought in a special guest who is one of our very own Popular Investors in eToro to update us on the Italian Elections that are happening this weekend.

Since it’s live on YouTube, you can also participate by sending in any questions and comments you have.

To join in, please come to the following link at 11:00 GMT.

Hope to see you there.

@MatiGreenspan
eToro, Senior Market Analyst

Today’s Highlights

• New Chair in the House
• Diesel Drops the Dax
• Dash Core is Now Autonomous

Please note: All data, figures & graphs are valid as of February 28th. All trading carries risk. Only risk capital you can afford to lose.

Traditional Markets

The new Fed Chairman Jerome Powell did little to calm the markets. From his testimony yesterday it was pretty clear that he knows what he’s doing and will likely lead with a steady hand.

However, at this point, the markets are so used to monetary easing that the thought of any tightening is terrifying.

Analysts are arguing whether there will be 3 or 4 rate hikes this year but at this point, it may just be irrelevant. At least Trumps tax cuts should provide a whole lot of stimulus out of the other end.

Markets held up well during the first part of the speech, but somewhere in the question and answer phase, things began to unravel. Volatility and Bond Yields started to go up, while the stock fell down.

Notice the lower right graph above, which is the China50, also dropping this morning on some sour PMI data.

Diesel Drops the Dax

The Dax in Germany also took a tumble yesterday but for different reasons. A Federal Administrative Court in Leipzig ruled that individual cities now have the right to ban diesel cars.

The cities of Stuttgart and Dusseldorf have already expressed interest to take such action in order to get a handle on pollution.

Stocks in Volkswagen and BMW promptly fell and brought the entire index down with them.

By the end of the day things did seem to recover but the opening this morning was rather weak, in line with the rest of the global markets at the moment.

Dash Core goes Autonomous

For cryptocurrencies, decentralization is the name of the game. The winner at the moment seems to be Dash.

In an unprecedented announcement yesterday the Dash Core Group has relinquished their legal ownership to the Dash DAO (Decentralized Autonomous Organization).

This means that the company behind the development of Dash is now legally owned by the network. The implications of this are mind-blowing!

The entire development process and management will now be the personal responsibility of no single person, but rather these decisions may be taken by harnessing the wisdom of the crowd and using a global perspective.

Unfortunately, the price of Dash coins does not seem to have been affected by this too much yet. Perhaps because the news is still too fresh. Also possibly because the entire crypto market is very heavily correlated at this time.

Here’s the chart of Dash over the last year. If it looks familiar, perhaps take a look at bitcoin.

Let’s have an awesome day!

This content is provided for information and educational purposes only and should not be considered to be investment advice or recommendation. The outlook presented is a personal opinion of the analyst and does not represent an official position of eToro. Past performance is not an indication of future results. All trading involves risk; only risk capital you are prepared to lose. Cryptocurrencies can widely fluctuate in prices and are not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework.

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