2024-02-28 02:32

Copyrighted Image by: Reuters. Investing.com-- Oil prices fell Wednesday, as investors digested a mixed dataU.S. inventories rose more than expected, but gasoline stockpiles surprised to the downside even as refinery activity inched higher. By 14:30 ET (19:30 GMT), the U.S. crude futures fell 0.4% lower at $78.54 a barrel and the Brent contract dropped 0.8% to $82.04 a barrel. Crude stockpiles continue build, but gasoline slips again Inventories of U.S. crude fell by roughly 4.2 million barrels in the week ended Feb. 25, beating estimates of of 3.1M, marking the third-straight week of larger-than-expected inventory builds. Gasoline inventories, one of the products that crude is refined into, fell by 2.8M barrels against expectations of a draw of 1.5M barrels while distillate stockpiles fell by 510,000 barrels, compared to expectations for a decline of 2.1M barrels. The bigger draw in gasoline comes even as refinery activity inched higher, rising 0.9% to 81.5%, though remains well below the 93% run rate seen at the start of the year. GDP data shows slowing U.S. growth Crude was also pressured by strength in the dollar, as markets positioned for key PCE price index data this week to gauge the path of U.S. inflation and interest rates. Data released earlier Wednesday showed that annualised U.S. GDP growth fell to 3.2% in the fourth quarter, down from 4.9% the prior quarter, suggesting economic activity is slowing in the world's largest economy and biggest consumer of crude. Several Fed officials have cautioned against cutting rates too soon, though some continue to suggest that three-rate cuts remain in play for 2024. [M[y view is that something like the three-rate-cuts-this-year projection from December is a reasonable kind of starting point" New York Fed President John Williams said, though added that there was still more work to do on curbing inflation. Continuation of OPEC+ cuts had prompted gains Prices were sitting on strong gains from the prior session after media reports suggested that the Organization of Petroleum Exporting Countries and allies (OPEC+) could maintain its current pace of supply cuts into the second quarter, keeping global supplies limited. Analysts at ANZ wrote in a morning note that strong U.S. refinery demand, high demand for U.S. oil exports and a widening spread between spot oil and one-month futures pointed to tighter physical markets in the coming months- a trend that is positive for oil prices. They noted that Chinese spot buyers had also increased amid higher demand during the Lunar New Year Holiday, while any potential extension of supply cuts by the OPEC+ heralded even tighter markets later this year. Biden says Israel agrees to Ramadan ceasefire Elsewhere. media reports pointing to U.S. President Joe Biden indicating that Israel has agreed to an over month-long halt in fighting in Gaza, for the Muslim holy month of Ramadan. Israeli and Hamas officials downplayed Biden’s comments. Basem Naim, the head of political and international relations for Hamas reportedly said on Wednesday the "the gap is still wide." The Israel-Hamas war has provided a floor to oil prices in recent months, especially amid fears that an extended conflict in the Middle East will disrupt global oil supplies. Continued attacks by the Yemeni Houthis on vessels in the Red Sea have also disrupted global shipping routes and delayed some oil deliveries in Europe and Asia. https://www.investing.com/news/commodities-news/oil-prices-dip-as-potential-build-in-us-inventories-offsets-opec-optimism-3317599

2024-02-27 18:44

Copyrighted Image by: Reuters. Updated Bitcoin prices outlook for 2024 With the price of Bitcoin on the rise once again, cryptocurrency is once again becoming a key talking point amongst investors and analysts Bitcoin prices After sizeable gains over the last few weeks, Bitcoin has continued to push higher this week, topping $57,000 on Tuesday. The latest move saw it reach its highest level since November 2021. For the year-to-date, the premier cryptocurrency has risen 35%, while Tuesday’s more than 4% gains (so far) add to its over 142% climb in the last 12 months. Research firm Compass Point said in a recent note that BTC and ETH both have both outperformed, and are up significantly since their last report. The move has also driven “strong crypto stock returns,” notes the firm. For example, Coinbase (NASDAQ:COIN) has climbed over 13% so far this year, while Microstrategy (NASDAQ:MSTR) is up 24.9% in 2024. Compass Point picked out COIN as a stock they continue to like, maintaining a Buy rating and $235 price target on the name. The firm believes it “will benefit from increased trading volumes as BTC dominance declines and stronger retail mix, higher staking revenue driven by higher ETH/SOL prices, and increased interest income from USDC beginning to take share from Tether while short-term rates remain elevated.” Bitcoin prices forecast Looking ahead, Compass Point said they continue to like the set-up for BTC/Crypto and “expect considerable upside in CY24 with BTC exiting the year at ~$85K+ levels driven by ETF inflows outpacing available supply on exchanges.” The firm highlighted that the prior BTC cycle low occurred in late November 2022 at ~$16.5K levels. “Since then, we've seen BTC price 3.3x to current ~$55K levels,” added Compass Point. “Overlapping prior 3-year cycles returns off the lows shows a strong relationship, which would suggest considerable continued upside if these trends were to continue before peaking out sometime 2H25 or early CY26.” Analysts at Compass Point acknowledged that interest rates haven't been this elevated in prior cycles. As a result, they believe “absolute returns likely won't be as high.” However, they state that “so far, cycles have rhymed.” Until they see trends indicating otherwise, the firm continues to “expect strong BTC price growth post-halving, which have historically been strongest in the first year post-halving before starting to taper off.” Elsewhere, analysts at Bernstein said in a recent memo that the crypto bull market is getting wider, with the Bitcoin bull market led by constant ETF inflows. The firm said Bitcoin halving is scheduled around April 20, 2024 and the price of the cryptocurrency historically breaks out post the event. This time, Bitcoin price action looks stronger pre-halving, and in our view will likely sustain momentum for rest of the year,” they wrote. The institutional narrative led by Bitcoin ETFs is driving demand, and Bitcoin being the reflexive asset, we expect higher price will bring higher ETF inflows, leading to new highs in 2024.” https://www.investing.com/news/cryptocurrency-news/updated-bitcoin-prices-outlook-for-2024-432SI-3317170

2024-02-27 17:53

Copyrighted Image by: Reuters. Microstrategy (MSTR) initiated with buy rating at Benchmark on $125k Bitcoin forecast Microstrategy, Inc. (NASDAQ:MSTR) was initiated with a Buy rating and $990 per share price target at Benchmark in a note to clients from the firm on Tuesday. Analysts stated the stock is a timely play for the upcoming Bitcoin halving. The firm's price target for the stock is based on its assumption that the price of bitcoin will reach $125,000 at the end of 2025, up from yesterday's price of $54,578. The rating and price target are "based on a sum-of-the-parts analysis that combines (1) our estimate of the year-end 2025 value of the company's bitcoin holdings and (2) our estimate of the year-end 2025 value of its business intelligence software business," explained Benchmark. "Notably, the first three halvings were associated with bull runs in the price of bitcoin," they added. "During the year following the first halving in November 2012, the price of bitcoin rose from around $12 to nearly $1,000. After the July 2016 halving, bitcoin rallied from $650 to $2,550 in 12 months." In addition, the firm feels the boost in demand for Bitcoin resulting from the launch of multiple spot Bitcoin ETFs, combined with the reduced pace of supply of coins resulting from the halving, "has the potential to drive the price of the cryptocurrency meaningfully higher during the next couple of years." "While some observers have suggested that the introduction of spot bitcoin ETFs in the U.S. would weigh on MSTR’s share price, since equity investors who bought the stock as a bitcoin proxy have a new array of such proxies to choose from, the stock continues to offer investors a unique value proposition, in our view," Benchmark explained. https://www.investing.com/news/cryptocurrency-news/microstrategy-initiated-with-buy-rating-at-benchmark-on-125k-bitcoin-forecast-432SI-3317137

2024-02-27 14:08

CASTLE ROCK, Colo. - Riot Platforms, Inc. (NASDAQ: NASDAQ:RIOT), a prominent player in Bitcoin mining, has announced the acquisition of 31,500 WhatsMiner M60S miners from MicroBT, a leading manufacturer of Bitcoin mining hardware. The purchase, totaling $97.4 million, is part of Riot's strategy to enhance its self-mining operations and increase efficiency at its Rockdale Facility. The new miners, featuring an efficiency of 18.5 J/TH, are expected to increase the facility's hash rate capacity from 12.4 EH/s to 15.1 EH/s by the end of July 2024. Riot's CEO, Jason Les, stated that the upgrade aims to replace underperforming machines and boost operational efficiency with the latest generation of miners. Approximately 14,500 units from this order will expand Riot's self-mining capacity, while the remaining 17,000 will replace older, less efficient miners. The company anticipates that the full deployment of the new hardware will contribute to its goal of achieving a 31 EH/s hash rate capacity by year-end 2024. MicroBT's COO, Jordan Chen, expressed enthusiasm for the continued partnership with Riot, noting the significance of this order for Riot's long-term goal of constructing a mining fleet with a capacity exceeding 100 EH/s. This information is based on a press release statement from Riot Platforms, Inc. InvestingPro Insights As Riot Platforms, Inc. (NASDAQ: RIOT) embarks on expanding its Bitcoin mining operations with a significant hardware acquisition, investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, Riot holds a market capitalization of approximately $4.4 billion, reflecting its standing in the industry. Despite a challenging P/E ratio currently standing at -60.78, analysts are optimistic about the company's sales growth in the current year, which aligns with Riot's strategic investments to bolster its mining capabilities. InvestingPro Tips suggest that Riot's decision to hold more cash than debt on its balance sheet could offer the company a stable foundation to navigate the volatile cryptocurrency market. Additionally, the company's significant return over the last week, month, and three months indicates strong investor confidence following recent strategic moves. These metrics could be pivotal as Riot aims to achieve a 31 EH/s hash rate capacity by the end of 2024, signaling potential for long-term growth. For investors seeking more comprehensive analysis, there are 16 additional InvestingPro Tips available for Riot Platforms, Inc., which can be accessed at https://www.investing.com/pro/RIOT. Utilize the coupon code PRONEWS24 to receive an extra 10% off a yearly or biyearly Pro and Pro+ subscription, and gain deeper insights into Riot's financial trajectory and market position. https://www.investing.com/news/cryptocurrency-news/riot-platforms-boosts-mining-capacity-with-974-million-hardware-purchase-93CH-3316836

2024-02-27 08:58

Copyrighted Image by: Reuters. Investing.com - The U.S. dollar edged lower in early European trade Tuesday, while the euro gained before the release of key inflation readings later this week which will offer more cues on global interest rates. At 04:00 ET (09:00 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.2% lower at 103.570, following a 0.2% slide on Monday. Dollar calm ahead of Fed’s favorite inflation gauge The dollar has retreated over the last week, but still trades not far away from recent three-month highs as traders position for the Federal Reserve maintaining interest rates at elevated levels for longer than had been expected at the start of the year. Kansas City Federal Reserve Bank President Jeffrey Schmid became, on Monday, the latest official to warn that the central bank was in no hurry to begin trimming interest rates early. "With inflation running above target, labor markets tight and demand showing considerable momentum, my own view is that there is no need to preemptively adjust the stance of policy," Schmid said in his first extensive public remarks since he began the job last August. The core PCE price index is due for release on Thursday, and forex trading ranges are likely to be tight ahead of the data, which is widely seen as the Fed’s preferred inflation gauge. Economists are expecting a 0.4% increase for January after 0.2% in the previous month. A stickier-than-expected reading could prompt the Fed to delay rate cuts further. The Federal Reserve is likely to delay cutting interest rates until the middle of the year, according to Citi analysts, as U.S. inflation shows signs of remaining stubbornly elevated. Euro gains ahead of CPI release In Europe, EUR/USD traded 0.2% higher at 1.0863, with European traders also on inflation watch as the eurozone releases its latest consumer prices data on Friday, the last such reading before the upcoming European Central Bank meeting on March 7. Economists are expecting an annual reading of 2.5% for February, dropping from 2.8% in January. While this figure would still be above the ECB’s 2% medium-term target, the central bank is also having to contend with lack-luster growth in the eurozone, and in Germany in particular, the region’s dominant economy. German consumer sentiment is expected to remain at a low level in March, according to forward-looking data published by GfK earlier Tuesday. GBP/USD traded 0.1% higher at 1.2698, after data showed that British grocery prices rose this month at their lowest rate since March 2022. Market researcher Kantar said U.K. annual grocery price inflation was 5.3% in the four weeks to Feb. 18, down from 6.8% in the previous four-week period. However, U.K. inflation continues to run at levels above the Bank of England’s 2% medium-term target, suggesting the BOE is still likely to lag the Federal Reserve and the European Central Bank when it comes to rate cuts. Yen benefits from inflation data In Asia, USD/JPY traded 0.4% lower to 150.17, with the yen one of the day’s better performers after consumer inflation read slightly higher than expected for January. While the reading still showed a retreat in inflation, it factored into growing expectations that the Bank of Japan will raise interest rates as soon as April. USD/CNY traded largely unchanged at 7.1980, in range bound trading before a string of key purchasing managers index readings due this Friday, which are expected to shed more light on Asia’s biggest economy. https://www.investing.com/news/forex-news/dollar-edges-lower-euro-gains-ahead-of-key-inflation-readings-3316178

2024-02-27 05:45

Copyrighted Image by: Reuters Investing.com-- Gold prices stuck to a tight range in Asian trade on Tuesday as investors looked to a swathe of upcoming economic data for more trading cues, although the near-term outlook for the yellow metal remained constrained. Bullion prices also remained largely within a $2,000 to $2,050 an ounce trading range established over the past two months, as any potential upside in the yellow metal was largely quashed by the prospect of higher for longer U.S. interest rates. Several comments from Federal Reserve officials furthered this notion, as they signaled that the bank was in no hurry to begin loosening policy due to sticky inflation. The dollar remained close to three-month highs on this notion. Spot gold rose 0.1% to $2,033.36 an ounce, while gold futures expiring in April rose 0.2% to $2,042.60 an ounce by 00:25 ET (05:25 GMT). PCE inflation, GDP data awaited for more trading cues Gold investors were now awaiting key U.S. economic data to dictate the next leg of movement for metal markets. PCE price index data- the Fed’s preferred inflation gauge- is due this Thursday, and is expected to show inflation remaining sticky, giving the Fed little impetus to consider rate cuts. Before that, a second reading on fourth-quarter GDP data is expected to show mild cooling in the U.S. economy, but not to the extent that the Fed will be pushed into loosening policy. The prospect of higher-for-longer rates bodes poorly for non-yielding assets such as gold, given that it increases the opportunity cost of investing in the yellow metal. Other precious metals also remained rangebound on this notion, with platinum futures rising 0.5% to $887.85 an ounce, while silver futures rose 0.1% to $22.758 an ounce, with both metals recovering a measure of steep losses through February. Among industrial metals, copper futures expiring in March rose 0.4% to $3.8510 a pound, with focus largely on key purchasing managers index data from top importer China, due later this week. UBS sees gold stronger by end-2024 Analysts at UBS said that while the near-term outlook for gold remained muted, the yellow metal was still set to strengthen later this year, especially as U.S. interest rates eventually come down. "We maintain gold is an attractive standalone investment, and can be used as a portfolio hedge against risk events," UBS analysts said. UBS maintained its year-end gold price forecasts at $2,250 an ounce for the end of 2024, and at $2,050 an ounce by June 2024. https://www.investing.com/news/commodities-news/gold-prices-remain-rangebound-with-inflation-rate-cues-on-tap-3316042