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Cryptos in favour as dollar drops

Cryptos in favour as dollar drops

In overnight trading shares drifted and the US dollar weakened as markets await the meeting between the presidents of China and the US. The uncertain growth outlook and lack of returns leaves investors with fewer options. As bond yields hit record lows and shares trade at highs the clearest winners are crypto currencies.

Bitcoin is trading at its richest level in fifteen months, having almost tripled since April. The enthusiasm for the alternative currencies has driven CMC’s All Crypto index above 5,000, from lows below 2,000 earlier in the year. The digital currencies offer an alternative choice to bond, share and property markets, and the ongoing crypto rally may reflect investor concerns for traditional asset classes.

Crude oil prices held firm as the US moved more troops to the Middle East in response to Iran approaching its uranium stockpile limit. Analysts are looking for further production cuts when OPEC meets next week. The swing factor is Russian participation, after its oil minister highlighted an uncertain demand outlook and said it was “too early to say” if Russia would continue to co-operate with OPEC.

The New Zealand dollar is steady in early trading after reporting a better than expected trade balance in May. Asia Pacific stock markets are set to open flat to slightly down. Looming events and a lack of data and could see major regional indices vacillate on low volumes. Spurned telco takeover target Vocus may receive attention on reports it is considering a sale of its New Zealand assets.

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