Market Snapshot – Stocks Under Pressure

Yesterday we saw a sell off in the stock markets due to multiple reasons. On the one hand, we had reports of Facebook data issues and this led to a large sell off in the shares of FB and it looks like that story is likely to develop more and more in the coming days which should generate a lot of bad press for the company. This has dragged down the stock indices in the US and this is likely to keep the pressure on them in the coming days. Also, there have been reports that the US might impose more tariffs on imported goods from China and they say that they could be announced as early as this Friday. If this turns out to be true, there is likely to be a lot of backlash from China and this could be the beginning of a global trade war. This is not good for either country or for the global economy as a whole and hence the stock indices around the globe have been under pressure due to these developments and are likely to continue to be so in the short term.

In the crypto world, the rebound continues as the BTC prices seem to have settled around the $8500 region while the ETH prices trade around the $550 region. We believe that the markets are in for a period of consolidation and this is likely to last for the short term as the investor try to gain some confidence in the markets and if and when they do so, we should see the prices begin to claw back again in a slow and steady manner. But this is going to take a bit of time and hence we expect some action to begin in the markets only during the month of April as the investors and the traders grapple with the tax season in many parts of the world.