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US stocks started the week strong, as bond yields eased from last week’s highs early Monday.
Two positive developments over the weekend also spurred investors on: The U.S. House on Saturday adopted the Biden administration’s $ 1.9 trillion pandemic relief package before the Food and Drug Administration grants emergency clearance to Johnson & Johnson’s JNJ,
COVID-19 vaccine – the first single dose available to Americans.
The price of bitcoin BTCUSD,
rose more than 5% to $ 47,691 on Monday, as it regained some ground after cryptocurrency’s worst week of last year, after hitting a record high of $ 58,332 the previous weekend.
In our call of the day, Citi analysts said bitcoin was at a “tipping point” between mainstream acceptance and a “speculative implosion.” But recent developments, including electric car maker Tesla’s TSLA,
Investment of $ 1.5 billion and movements by PayPal PYPL,
Visa V,
and Mastercard MA,
to accept payments, pointed to the former.
Analysts, led by Kathleen Boyle, editor-in-chief of Citi GPS, noted that a “multitude of risks and obstacles” were preventing the cryptocurrency from advancing.
“But weighing these potential hurdles against the opportunities leads to the conclusion that bitcoin is at a tipping point and we may be at the start of a massive transformation of cryptocurrency into the mainstream,” they said. .
The report added that bitcoin could eventually become “the currency of choice for international trade,” due to its global reach, neutrality, and lack of currency exposure.
The biggest shift in recent years has been the shift from an effort focused on retail to “something that looks appealing to institutional investors,” the authors noted.
If recent efforts lead to a central bank-backed digital currency, individuals and businesses would have digital wallets containing a variety of cryptocurrencies, like today, with checking, savings, and cash accounts, have they declared. “In this scenario, bitcoin can be optimally positioned to become the preferred currency for global commerce,” they added.
However, hurdles ahead on this path include market upgrades and the possibility for the cryptocurrency space to move closer to the oversight and rules of traditional financial regulators, Citi noted.
The steps
US equities made significant early gains, with the Dow Jones Industrial Average DJIA,
2%, or 620 points, more shortly after opening. The S&P 500 SPX,
and the Nasdaq Composite COMP,
were also in place. European stocks rallied and Asian markets rose overnight amid hopes of Biden’s US stimulus package and last week’s sell-off.
The buzz
Dr Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, said he would have “no hesitation” in taking the COVID-19 vaccine from Johnson & Johnson, and that the three vaccines available to them Americans were “very efficient”.
Reddit chief executive Steve Huffman reiterated his praise for the WallStreetBets forum which has rocked Wall Street “memes stocks” in recent weeks. Huffman said the community “has exposed a gap” between those with access to financial markets and those outside.
British home builders jumped on Monday, according to reports the government was trying to boost homeownership with a new mortgage guarantee.
Cruise operator Royal Caribbean Group said it has launched a public offering of $ 1.5 billion.
Owner of Ladbrokes Entain ENT,
said it had increased its bid for rival Swedish sports betting company Enlabs.
At the Golden Globe Awards, “The Crown”, “Schitt’s Creek” and “Nomadland” were among the big winners.
Random readings
Actor Ben Stiller’s baked trophy and other Golden Globes highlights.
The doctor appears on a video call to court during surgery.
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