Stocks falter as Chinese crackdown engulfs crypto: Markets envelop

(Bloomberg) – Stocks have struggled to tread after China stepped up its broad regulatory crackdown on cryptocurrencies. Bitcoin, Ether, and other digital tokens have plummeted.

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In another blow to investor morale, the world’s second-largest economy said crypto-related transactions would now be considered illicit financial activity. The move hits the heart of a booming market this year, while adding to concerns about increasingly stringent regulations in a variety of industries, from tech to after-school tutoring and ridesharing.

The S&P 500 came out of session lows as the dollar rose. The Nasdaq Golden Dragon China Index – which tracks some of the largest Chinese companies listed in the United States – and crypto-related stocks such as Coinbase Global Inc. and Marathon Digital Holdings Inc. have collapsed.

This week has shaken markets, with analysts citing concerns over the Federal Reserve’s withdrawal from stimulus measures, contagion risks from struggling developer China Evergrande Group and pessimism over the passage of a bipartisan bill. on infrastructure in the United States.

Traders withdrew $ 28.6 billion from U.S. equity funds in the week to September 22 – the biggest buyout since February 2018, according to a note from Bank of America Corp., which cites data from ‘EPFR Global.

For more market analysis, read our MLIV blog.

Some of the main movements in the markets:

Actions

  • The S&P 500 was little changed at 9:56 a.m. New York time

  • The Nasdaq 100 fell 0.6%

  • The Dow Jones Industrial Average has changed little

  • The Stoxx Europe 600 is down 0.7%

  • The MSCI World index fell 0.3%

Currencies

  • Bloomberg Dollar Spot Index rose 0.3%

  • The euro fell 0.2% to $ 1.1716

  • The British pound lost 0.3% to $ 1.3685

  • The Japanese yen fell 0.3% to 110.66 per dollar

Obligations

  • The yield on 10-year treasury bills rose two basis points to 1.45%

  • German 10-year rate rose three basis points to -0.22%

  • UK 10-year yield rose two basis points to 0.93%

Merchandise

  • West Texas Intermediate crude rose 0.3% to $ 73.50 a barrel

  • Gold futures fell 0.3% to $ 1,743.80 an ounce

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