Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Bitcoin, Airlines Take To The Skies

Published 04/12/2018, 10:54 AM
Updated 04/25/2018, 04:10 AM

After a lackluster start, markets turned on a dime- or more specifically on a tweet. US President Donald Trump backpedalling (via Twitter (NYSE:TWTR)) on plans to launch an attack in Syria encouraged a rebound in sentiment. US equity futures jumped, European markets reversed early losses, and related or not, Cryptocurrencies soared.

The price of bitcoin surged double digits to break back over $8000. The renewed interest in cryptos might relate to the need for wealthy Russians and Chinese under pressure from new sanctions and tariffs to covertly send money overseas. Bitcoin’s price surge could well be enough to capture the imagination of traders in what is still a very speculative market.

Trump’s tweet raises hopes for a more considered response to the alleged chemical attack in Syria but the movement of warships into the region tell another story. While markets switch to a more ‘risk-on’ mood, crude oil prices fell back from 3-year highs. Oil traders are pricing in a lower risk premium to an escalation in the Syria war and a report from OPEC showing a jump in world oil supplies in March.

The airline sector saw some of the most activity in the UK stock market after British Airways-owner IAG (LON:ICAG) revealed it had bought a stake in rival carrier Norwegian Air. Investors questioned the merits of a possible merger but recognised it could be a boon for other budget airlines. For one, shareholders may be reticent to approve another deal so soon after acquiring Aer Lingus. And two, it is an upfront cost to IAG that could otherwise be spent improving customer experience. If one assumes IAG will lift the fares and cut routes operated by Norwegian, then it reduces competition for the likes of EasyJet, Ryanair and Wizz Air.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.