Stock markets go nowhere as bitcoin smashes record

A Bitcoin logo is displayed at the Bitcoin Center New York City in New York’s financial district in New York on July 28, 2015. (REUTERS/Brendan McDermid/File Photo)
Updated 07 December 2017
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Stock markets go nowhere as bitcoin smashes record

LONDON: The world’s stock markets struggled for direction Thursday as investors paused for breath, while bitcoin spiked to a dizzying record above $15,000 on frenzied speculative buying, dealers said.
Paris stocks crept 0.2 higher and Frankfurt gained 0.4 percent, but London turned 0.4 percent lower.
Wall Street rose modestly, with the Dow adding 0.3 percent and the tech-heavy Nasdaq Composite climbing 0.7 percent. Analysts said investor sentiment was still hamstrung by coming political battles surrounding a US tax reform plan.
Much focus, meanwhile, was on bitcoin which set a fresh record as investors’ jaws dropped at the cryptocurrency’s meteoric rise.
Bitcoin, which is not traded on traditional currency market, powered to a fresh high of $15,969.99, before falling back according to Bloomberg data.
The controversial virtual unit has soared more than 50 percent in just one week, but analysts warn that the snowballing rally could melt in the run-up to Christmas.
“While the European stocks indices try and shake off yesterday’s politically-driven bearish trading, bitcoin — seemingly unencumbered by anything in the real world — has continued its astonishing march,” Spreadex trader Connor Campbell told AFP.
“The rolling wave of speculation has given bitcoin a huge amount of momentum, a snowball effect that may be melted when the cryptocurrency’s futures are launched in a few weeks.”
“Bitcoin is continuing to travel at break-neck speed,” CMC Markets analyst David Madden told AFP.
“The alternative investment is proving to be very popular at a time when traditional assets like gold are under pressure,” he added, noting the precious metal had touched a four-month low.
Bitcoin received a major boost in October when exchange giant CME Group announced it would launch a futures marketplace for bitcoin, which has not been listed on a major bourse before.
“Bitcoin... has registered yet another milestone in its never-ending rally,” added IG analyst Chris Beauchamp.
“There seems no end to the supply of willing buyers, with the endless progression of higher prices simply fueling the mania.”
Tokyo stocks rallied on Thursday after three days of losses, but regional Asian markets were dogged by political concerns, the latest being US President Donald Trump’s controversial decision to recognize Jerusalem as Israel’s capital.
After a blockbuster year for most global markets — helped by bets on Trump’s promise to cut taxes and ramp up spending — geopolitical worries and dealers winding down for the year’s end have put them on course for a painful December.
Trump’s Jerusalem decision drew swift global condemnation and fanned fears about the overall prospects for stability in the Middle East.
That followed news this week that one of the president’s former close advisers had admitted lying to investigators in a probe into Russian meddling in the US election, bringing it closer to the White House.
Elsewhere, Britain’s struggles to hammer out a deal with the EU on the Irish border question have left Brexit talks in limbo, meaning the second phase of the negotiations — on trade — cannot yet go ahead.
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London — FTSE 100: DOWN 0.4 percent at 7,320.75 points (close)
Frankfurt — DAX 30: UP 0.4 percent at 13,045.15, (close)
Paris — CAC 40: UP 0.2 at 5,383.86 (close)
EURO STOXX 50: UP 0.2 percent at 3,567.50
New York — DOW: UP 0.3 percent at 24,201.53
Tokyo — Nikkei 225: UP 1.5 percent at 22,498.03 (close)
Hong Kong — Hang Seng: UP 0.3 percent at 28,303.19 (close)
Shanghai — Composite: DOWN 0.7 percent at 3,272.05 (close)
Euro/dollar: UP at $1.1799 from $1.1795 at 2200 GMT
Pound/dollar: UP at $1.3421 from $1.3393
Dollar/yen: UP at 112.65 yen from 112.27 yen
Oil — Brent North Sea: UP 75 cents at $61.97 per barrel
Oil — West Texas Intermediate: UP 41 cents at $56.37


India cuts sales tax across sectors to ease pain of traders and consumers

Updated 21 July 2018
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India cuts sales tax across sectors to ease pain of traders and consumers

MUMBAI: India slashed the sales tax rate on over 50 products on Saturday in a move aimed at appealing to traders and the middle classes as Prime Minister Narendra Modi’s government eyes next year’s elections.
Modi is seeking a second term in 2019 amid voter frustration over the abrupt implementation of a nationwide goods and services tax (GST) a year ago that has hit businesses and general public hard.
The GST council, headed by interim finance minister Piyush Goyal, agreed to lower the indirect tax slab on products such as paints, leather goods, bamboo flooring, stoves, televisions and washing machines from the highest rate of 28 percent to mostly 18 percent.
“The exercise was to ensure simplification and rationalization of GST and extend relief to the common man,” Goyal told a news conference in New Delhi on Saturday evening.
The tax rate on ethanol blended with petrol, footwear costing up to 1,000 rupees and fertilizer grade phosphoric acid has been cut to from 12 to 5 percent, Goyal said.
The council cut taxes on sanitary pads and fortified baby milk to zero, Goyal said.
In a boost to mobile phone manufacturing and electric vehicles, the tax rate on lithium ion batteries was cut from 28 percent to 18 percent.
“The decision taken today will increase compliance and the revenue impact on total tax collections will be marginal,” said Goyal.
The revised tax rates will be applicable from July 27.
Revenue collections from GST are a crucial pillar of government’s plan to cut its fiscal deficit in the current year. India’s GST collection for the fiscal 2017/18 was 98 percent of the budgeted target.
“The broad level reductions in rates could lead to lower tax collections,” said M S Mani, partner at consulting firm Deloitte India.
However, the tax cut will lead to higher sales which could offset revenue losses, Mani added.
($1 = 68.7300 Indian rupees)