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5 Keys to Wall Street By Investing.com


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By Geoffrey Smith

Investing.com – Elon Musk is putting his offer on Twitter (NYSE:) on hold, apparently for due diligence reasons. Funding problems may also be behind this announcement. Cryptocurrencies rally as he resists intense demand for refunds. Stocks and risk assets in general also point to a higher open, but are on track to close the week with losses. New data shows the extent of China’s economic slowdown in April, and G7 ministers meet to discuss mounting pressure on Russia.

Here are the top five things to watch out for this Friday, May 13, in the financial markets.

1. The crypto rally

Cryptocurrencies rallied wildly as panic triggered by the collapse of the algorithmic stablecoin and its associated token, .

Confidence has returned after the world’s largest stablecoin network, Tether, successfully managed a period of intense demand for refunds, as crypto holders scramble to convert their assets back into dollars or another fiat currency. Unlike , Tether is backed by real assets, over 40% of which are risk-free, highly liquid Treasury bills.

Tether was trading back around its 1:1 parity with the dollar at the start of trading this Friday in Europe. He rose as much as 13% before paring his gains and rising 8.6% to $30,409 by 12:15 PM ET. However, it continues to accumulate losses of around 16% for the week as a whole, after a few difficult days for risk assets in general.

2. Musk puts Twitter deal on hold

Elon Musk has said his offer for Twitter has been “temporarily on hold”. The CEO of Tesla (NASDAQ:) has said the move was a response to a Twitter presentation on Thursday that claimed less than 5% of accounts on its network are spam bots or fake news vehicles. Musk has indicated that he believes the ratio is much higher and has made its eradication one of his top priorities.

However, the arithmetic behind Musk’s leveraged buyout offer has been complicated, as the value of his Tesla shares has fallen by around 16% this past week. They are now almost 30% off this year’s highs. Musk was to borrow about $12 billion against his stake through a margin loan under the original terms of the deal.

Shares of Twitter fell more than 20% before the open in response to the news, while those of Tesla jumped 4.8% as the risk of a major stock surge receded.

3. Chipmakers steal the spotlight

US stocks are set to open higher this Friday, with some short covering at the end of a volatile week. Sentiment improved towards the end of trading on Thursday as Federal Reserve Chairman Jerome Powell has again rejected the idea of ​​raising key interest rates by 75 basis points at the bank’s next policy meeting. central.

At 12:20 AM ET, {{8873|Jones futures}} were up 216 points, or 0.7%, while {{8839|500 futures}} were up 1.0% and {{8874|Nasdaq 100{}} futures 1.6%. This puts them on track to suffer losses of between 2.8% and 4.2% this week.

Stocks likely to command attention this Friday include chipmakers, after Bloomberg reported that industry leader Samsung (KS:) is seeking to raise its semiconductor prices by 20%, while the actions of Duolingo (NASDAQ:) rose 17% before the open after its quarterly update.

Jessica Alba’s company is also due to report on Friday, while Honda’s (TYO:) ADRs rise 3.9% after the Japanese auto giant reported better-than-expected results.

4. China credit growth slows sharply

Credit growth in China slowed sharply in April on the impact of the implementation of lockdown measures to curb the spread of Covid-19. These measures affected almost 400 million people during the month, according to some sources.

Losses fell to 645 billion yuan from more than 3.1 billion yuan in March, while the broader credit aggregate, known as , also slumped to record its slowest growth since the start of the pandemic.

The lockdown measures are not helping the balance sheets of the country’s beleaguered property developers.

5. Oil continues to rise on fears that Russian production will be affected

Oil prices extend Thursday’s gains as G7 foreign ministers meet to coordinate mounting diplomatic and economic pressure on Russia to abandon its clumsy invasion of Ukraine.

By 12:30 PM ET, futures were up 1.7% at $107.99 a barrel, while futures were up 1.8% at $109.36 a barrel.

Baker Hughes’s report on the and data from the CFTC will close later in the week.

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