The absence of UK and US participants led to a subdued overnight trading session. European shares bounced as more moderates than expected gained seats and Greece called a general election. Traditional currency markets were steady, allowing recovering digital currencies to take the spotlight.
Crypto currencies are surging as traders return attention to assets that are less exposed to global growth concerns. Bitcoin is leading the digital currencies and linked coins such as Bitcoin cash and Litecoin have joined the party. Bitcoin is trading around US $8,800, well up from levels closer to $4,000 in March. More independent blockchain offerings, such as Ethereum and Ripple, have so far lagged others but are still significantly higher.
In Europe the centrist parties did not fare well. However the expected benefit to far right parties also failed to materialise. Gains for socialists in Spain were somewhat offset by gains for more right leaning Lega party. Green and Euro sceptic parties also made gains. Overall, European investors heaved a sigh of relief. Britain remains a special case and the strongly pro-Brexit results speak to the will of British voters.
Although futures are pointing to a quiet start to Asia Pacific Australian investors could focus on telcos after yesterday’s bid for enterprise internet provider Vocus. Swedish private equity group EQT Infrastructure has tabled a highly-conditional proposal. Vocus shares closed at $4.55 yesterday (up 17%), well below the indicative bid at $5.25.
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