Bitcoin Surpasses $9,000 Per Coin

The US had a shortened trading session on Friday as a result of the Thanksgiving holiday on Thursday and therefore trading activity was lower than usual. Nevertheless, both the Dow and S&P 500 finished slightly higher. With weak leads from overseas, ASX 200 futures are indicating a flat open this morning.  

Oil has continued its strong run, with WTI currently trading very close to US$59 per barrel. This represents a 38% increase in price since mid-June and makes oil one of the best performing assets over that period. With the OPEC meeting occurring this week, oil traders are expecting an extension to the production cuts that are currently set to expire in March.

Of course, oils gains are vastly surpassed by bitcoin which has made a new record high, breaking through US$9,000 per coin after rising around $1,000 in 24 hours. This brings the year to date gain to around 900%.  

This week the second estimate of US third quarter GDP will be released which is expected to be revised upwards to 3.3%. Also, Australia’s private capital expenditure data will be released on Thursday which gives an idea of how much private businesses have been spending on new capital equipment, a leading indicator of economic activity. 

Data Releases:

–    No Significant Data

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This article was written by William O’Loughlin – Investment Analyst, Rivkin Securities Pty Ltd. Enquiries can be made via william.oloughlin@rivkin.com.au or by phoning +612 8302 3633.