Bitcoin hit a new high as investors as Federal Reserve governor Christopher Waller talked up the potential for stablecoins to boost competition in payments and bring down prices for transactions.
The mood on Wall Street was generally better with US stocks extending their gains as investors shrugged off US President Donald Trump’s latest bout of tariffs, including a 50% import levy for Brazil, prompting a retaliatory threat from his Brazilian counterpart Luiz Inacio Lula da Silva.
Meanwhile, airlines were on the rise after Delta Air Lines said bookings have settled down.
And Australian media is reporting T&G Global has attracted potential suitors as Craigs Investment Partners prepares to launch a formal sale for the fruit exporter controlled by stricken Germany firm, BayWa.
Stabilising
Bitcoin rose 1.6% to US$113,494 at 7am in Auckland, having touched a fresh high through the US trading session as crypto investors continue to embrace the friendly policies from the White House. Meanwhile, Fed governor Christopher Wallace talked up the prospect of stablecoins bringing prices for payments by adding more competitive tension.
Crypto exchange Coinbase Global was up 3% in late trading, in a stronger day for Wall Street as investors adapt to US President Donald Trump’s new trade order. The Nasdaq Composite nudged up 0.4% in late trading, while the Dow Jones Industrial Average advanced 0.6%.
Mining stocks in London bounced back from their initial selloff on the prospect of a 50% tariff on copper, with the FTSE 100 index up 1.2%. US rare earth materials firm MP Materials surged 53% after the US Defense Department took a 15% stake in the firm.
Airlines were broadly stronger after Delta forecast a stronger third-quarter profit than analysts predicted, saying travel demand has stabilised. Delta was up 12% in late trading, while United Airlines and American Airlines also enjoyed double-digit gains.
Tariff time
Trump continued to roll out new tariffs for various trading partners, including a 50% levy for Brazil which included criticism of the Latin American nation’s treatment of former president Jair Bolsonaro and US tech companies.
Brazilian President Luiz Inacio Lula da Silva responded in kind, saying his nation will impose an equivalent 50% tariff if Trump presses ahead with the planned impost.
“This was a new development to the extent that tariff threats seem no longer related to national security or trade imbalance concerns, they can also be imposed simply if Trump doesn’t like you, the legality of which is even more dubious than the widespread country tariffs imposed under emergency powers,” Bank of New Zealand senior market strategist Jason Wong said in a note.
Investors are watching for any movement on a potential trans-Atlantic trade deal, with European Union trade chief Maroš Šefčovič saying they’ve made good progress, and an agreement could be possible within days.
Bring it home
That upbeat tone is poised to flow through to the antipodes, with Australian futures pointing to a 0.4% gain when the S&P/ASX 200 index opens. The kiwi dollar rose to 60.29 US cents at 7am from 60.07 cents yesterday.
Local data today include the BNZ-Business NZ performance of manufacturing index.
The Australian Financial Review’s Street Talk column reported T&G Global is attracting potential suitors such as ROC Partners and Macquarie Asset Management ahead of a formal sale process being run by Craigs Investment Partners. T&G’s cornerstone shareholder BayWa is restructuring its global operations to shore up its balance sheet.
And BusinessDesk reported Vital substantial shareholder Salt Funds Management hasn’t made up its mind on whether to accept Tait International’s 45 cents-per-share offer, taking a dim view of the independent adviser’s valuation.
Reporting by Paul McBeth. Image from Kanchanara on Unsplash.
