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US MBA mortgage applications w.e. 15 November +1.7% vs +0.5% prior

US MBA mortgage applications w.e. 15 November +1.7% vs +0.5% prior

November 20, 2024 2:27 pm |

  • Prior +0.5%
  • Market index 195.6 vs 192.4 prior
  • Purchase index 136.0 vs 133.3 prior
  • Refinance index 514.9 vs 506.0 prior
  • 30-year mortgage rate 6.90% vs 6.86% prior

Despite a continued rise in the average home loan rate, mortgage applications steadied in the past week with both purchases and refinancing activity showing a bounce. It’s only a bit of a light comfort though, after having seen a sharp plunge in the first week of November.

This article was written by Justin Low at www.forexlive.com.

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Wall Street Miner Canaan Raises $30 Million, Sees 121% Revenue Increase in Q3 2024

Wall Street Miner Canaan Raises $30 Million, Sees 121% Revenue Increase in Q3 2024

November 20, 2024 2:21 pm |

Canaan Inc. (NASDAQ: CAN), a provider of computing
solutions, has made progress in several areas, including securing investments,
expanding its product offerings, and growing its mining operations.

Canaan Secures $30 Million

The company recently entered into a securities purchase
agreement, selling up to 30,000 Series A-1 Preferred Shares at $1,000 each to
an institutional investor. This agreement will raise $30 million to support the
development of digital mining sites and equipment in North America.

This follows a previous Series A financing, completed in
September 2024, in which Canaan sold up to 125,000 Series A Convertible
Preferred Shares.

CEO Nangeng Zhang highlighted the importance of these
investments in supporting the company’s growth and potential market
opportunities, particularly in relation to Bitcoin. The agreement includes
standard provisions, including indemnification clauses.

HIVE Orders 5,000 Miners

Canaan’s product development has also progressed, with high
demand for its Avalon A15-194T miners. The company entered a follow-on purchase
agreement with HIVE Digital Technologies to deliver 5,000 Avalon A15 miners in
the first quarter of 2025.

Canaan’s A15 series has been noted for its power efficiency
and plays a key role in the company’s expansion efforts, especially in North
America.

Zhang emphasized HIVE’s focus on environmental, social, and
governance (ESG) initiatives, which aligns with Canaan’s strategic focus,
particularly in meeting the rising demand for AI computing capacity.

Joint Venture Targets 10 EH/s

In addition to expanding its product offerings, Canaan is
strengthening its North American mining presence. Its subsidiary, Beet Digital
LLC, has signed a joint mining agreement with Luna Squares Texas LLC (LS
Texas). The agreement aims to expand Canaan’s mining capacity to 10 exahash per
second (EH/s) by mid-2025.

Under the agreement, revenue from Avalon A14 machines will
be split 50/50, while revenue from Avalon A15 machines will be split 70/30
until Canaan recovers its capital costs.

This partnership will involve the
deployment of 9,144 Avalon mining machines at LS Texas’ 30 MW site in Willow
Wells, Texas, by the first quarter of 2025. Additionally, Canaan has replaced
older mining units with 6,000 Avalon A14 series machines at Stronghold Digital
Mining’s Panther Creek facility, enhancing its overall mining fleet.

Q3 Revenue Soars 121%

Canaan’s financial results for Q3 2024 reflect strong
performance, with revenue of $73.6 million, a 121% increase compared to the
same period last year. This exceeded the company’s guidance and was driven by
the delivery of 7.3 million terahashes per second (Thash/s) in computing power,
marking the highest sales volume in 11 quarters.

The company mined 147 Bitcoins during the quarter,
generating $9 million in mining revenue. Despite lower Bitcoin prices, Canaan’s
efforts to optimize operations and strategically sell A14 and A15 miners
contributed to its positive financial results.

The company also increased its
Bitcoin holdings to a record 1,231 BTC, signaling confidence in the long-term
value of cryptocurrency.

Market Upturn Production Plans

Looking ahead, Canaan is focused on ramping up production of
the A15 series, which began small-scale deliveries in Q3. The company’s strong
cash position, bolstered by its Series A financing and successful product
deliveries, provides a foundation to capitalize on a potential market upturn.

Canaan remains on track to reach its target of 10 EH/s in North America by
mid-2025, supported by expanding relationships with mining operators and
continued product development.

This article was written by Tareq Sikder at www.financemagnates.com.

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What technical levels are in play for some of the major currencies vs the USD

What technical levels are in play for some of the major currencies vs the USD

November 20, 2024 2:07 pm |

To start the US session , the USDJPY is the biggest movers as it bounced back to the upside extending back above technical levels in the process. The pair is up 0.66% to start the US trading session.

Yields are moving higher helping the pair with the 10 year up about 4.5 basis points at 4.421%. The two year yield is up 2.8 basis points at 4.2996%

The dollar is higher vs all the major currencies with gains of 0.47% vs the NZD, 0.35% vs the AUD and 0.33% vs the EUR also contributing to the gains.

US stocks are looking to move higher despite Target getting hit hard after earnings disappointed this morning. The Dow futures are implying a gain of 143 point (retracing the -120 point decline yesterday). The S&P is up after rising 33.36 points yesterday. The Nasdaq is up 50 points after rising 195 points or 1.04% yesterday.

Arguably the most important event today will be Nvidia’s earnings after the close.

Earnings Expectations

  • Adjusted quarterly earnings: $0.74 per share versus $0.40 last year (85% YoY increase)

  • Revenue: $33.2 billion versus $18.12 billion last year (84% YoY increase)

  • Fiscal Q4 sales guidance: $37.7 billion (KeyBanc estimate, down from $40 billion)

  • Fiscal Q4 earnings outlook: $0.83 per share (KeyBanc estimate, down from $0.88 per share)

In other markets:

  • Crude oil is up $0.56 or 0.79% at $69.78
  • Gold is up three dollars or 0.12% at $2635.20
  • Bitcoin is up around $1400 or 1.6% at $93,899. Yesterday a new all time high was reached at $94,057

Fed speak today will include:

  • FOMC Gov. Michael Barr 10 AM ET. Barr is the vice chair and in charge of supervision
  • FOMC Gov. Lisa Cook will be speaking at 11 AM ET
  • FOMC Gov. Michelle Bowman will speak at 12:15 PM ET

Crude oil inventory data for the current week will be released at 10:30 AM ET. The private data showed:

The expectations are looking for:

  • Crude oil +0.138M
  • Gasoline +0.859M
  • Distillates -0.020M

Looking at the technicals leading some of the major currency

EURUSD: The week is halfway over and the EURUSD is mired in a up and down trading range with the price remaining below a swing area above between 1.0592 to 1.0610 and a swing area below between 1.0515 and 1.05316. That is a 95 pip range which is not a lot, but it does come after a move down from 1.1213 to 1.04956 over the course of 6-7 weeks (since September 26). So it is not surprising.

Drilling to the hourly chart, the high price this week did find willing sellers ahead of the 200 hour MA (green line). Today, the price fell below the 100-hour MA at 1.0562 tilting the bias more to the downside. The door is open to test the swing areas.

USDJPY: The USDJPY moved down to test the broken 61.8% of the moved down from the July high to the low reached in September at 153.397. The price moved to a low yesterday of 153.27 so the sellers had their shot. They missed. The price snapped back higher and in trading today has extended back up and broke a swing area between 154.54 and 155.21. That area is now close risk for buyers and sellers today. Stay above is more bullish.

Drilling to its hourly chart below, the price rise yesterday moved above the 200 hour MA in the US afternoon yesterday and stayed above it today. That gave the buyers the go ahead to push higher. After breaking the 100 hour MA, buyers were encouraged to take the price even higher. The price trades at the highs going into the US session.

US yields are higher and near highs for the day which is a tailwind. 2 year is up 3.4 basis points at 4.306%. The 10 year is up 4.9 basis points at 4.427%.

GBPUSD: The GBPUSD extended higher in trading today, advancing above a swing area between 1.2654 to 1.26858 (bullish). The momentum took the price to a high of 1.27138 which was near a swing low from last week and then a corrective swing high (from last week as well – see red numbered circles). The price fell short of the broken 61.8% retracement level at 1.27322. Buyers turned to sellers and has now pushed the price back to the aforementioned swing area and tests the low of that level at 1.2654.

Move below 1.2654 and the traders start to look back toward the lower swing area 1.2596 to 1.26137 (see the lower yellow area). Go for it would take a move below that level to open the door for further selling momentum with lows from May the next targets on the downside.

USDCHF: The USDCHF moved lower yesterday, and in the process retested the 50% midpoint of the move down from the May 1 high. That midpoint level comes in at 0.87986. The low price from yesterday reached 0.8800 (also a nice natural support target). In the process, the price fell below its 200-day moving average and swing area near 0.8819 and 0.8826, but both those levels were rebroken and the price has extended higher in trading today. Sellers made an effort, but they could not stay below the 200 day moving average nor break back below the 50% midpoint. So buyers keep most of the control.

Going for the price will need to stay above the 200 day moving average to keep that control. On the top side there is resistance at a swing area between 0.8880 and 0.8900. Last week the price did extend above that area, but failed leading to the corrective move lower this week.

So there is a battle with buyers and sellers with the 50% near 0.8800 and the 0.8900 level above providing the support and resistance levels that would need to be broken one way or the other to either increase the bullish bias or increase the bearish bias.

This article was written by Greg Michalowski at www.forexlive.com.

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ForexLive European FX news wrap: Dollar starts to perk up again

ForexLive European FX news wrap: Dollar starts to perk up again

November 20, 2024 1:51 pm |

Headlines:

Markets:

  • USD leads, JPY lags on the day
  • European equities higher; S&P 500 futures up 0.2%
  • US 10-year yields up 5.1 bps to 4.429%
  • Gold down 0.1% to $2,628.43
  • WTI crude up 0.5% to $69.76
  • Bitcoin up 1.4% to $93,583

The dollar is starting to perk up again in trading today, following a bit of a breather in the past two days.

There wasn’t much to trigger the dollar gains as traders just fell back to the post-election mood in the European morning session. USD/JPY was an early mover, gaining to around 155.20 in the handover from Asia before extending gains to around 155.80 currently.

That comes as bond yields are also tracking higher on the day. And it wasn’t long before the dollar caught stronger bids across the board.

EUR/USD moved down from 1.0580 to 1.0550 while GBP/USD is pulled lower from 1.2700 after a hotter UK CPI report to 1.2665 currently.

Elsewhere, USD/CAD is back up by 0.3% to near 1.4000 while AUD/USD is down 0.5% to test the 0.6500 mark once more.

Looking to broader markets, equities are cautiously higher with watchful eyes on Nvidia’s earnings after the close. Meanwhile, gold is marginally lower as the dollar and higher yields are keeping the rebound this week in check for a bit.

Besides that, Bitcoin is also seeing renewed bids amid the return to the post-election mood, at least for now. The cryptocurrency is seen up over 1% above $93,500.

This article was written by Justin Low at www.forexlive.com.

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Fear Index Frenzy: Ukraine Jitters Shake Markets Worldwide

Fear Index Frenzy: Ukraine Jitters Shake Markets Worldwide

November 20, 2024 1:49 pm |

Geopolitical worries over Ukraine spike the Fear Index as stocks
tumble, bonds rally, and traders brace for a rocky ride.

Just when you thought markets had seen it all, Ukraine’s geopolitical
tensions returned to rattle investors. Yesterday, Wall Street’s VIX Fear Index,
a barometer for market volatility, spiked to levels not seen in over a year,
heading up by almost 6%. This wasn’t your average bad day—it was panic in real
time.

The trigger? Escalating fears that Russia might deploy tactical nuclear
weapons, a move that could irreversibly escalate the war and its economic
ramifications. Markets loathe uncertainty, and investors responded in kind:
dumping riskier assets and piling into safe havens faster than you can say “sell-off.”

By the end of the trading session, the Dow dropped around 350 points,
the S&P 500 shed 0.4%, and the tech-heavy Nasdaq slid by 0.3%. As
geopolitical fears rise, so does the nervous energy across trading floors
worldwide.

European Markets Take a Beating

The Financial
Times reported that the FTSE 100 index experienced a decline of 0.5% on
November 19, 2024, amid escalating tensions in the Ukraine conflict. Germany’s
DAX and France’s CAC 40 indices each fell by 0.7% on the same day, reflecting
investor concerns over the geopolitical situation.

Europe’s main stock index took a nosedive to a three-month low on
Tuesday, spooked by Russia’s increasingly loose talk of nuclear strikes.
Because nothing says “sell everything” like a hint of apocalypse, right? The
pan-European STOXX 600 (.STOXX) limped to a 0.4% loss by the close, after
earlier plunging 1% to its lowest since August 8. That’s three straight days of
red—who needs a winning streak anyway?

And where are investors running? Straight to bonds. Yields
on 10-year U.S. Treasuries sat at 5% as prices surged.

Commodities Rally

The turmoil wasn’t bad news for everyone. Commodities had their moment
in the spotlight. Gold—long hailed as the ultimate safe haven—is sitting at $2,630
an ounce, its highest level in six months. Oil markets also rallied, with Brent
crude jumping amid concerns that escalating tensions could disrupt supply
routes.

Even agricultural commodities felt the heat, with wheat and corn prices
ticking upward. Investors are bracing for potential sanctions or logistical
hurdles that could further strain global food supply chains.

The Biden-Putin Effect

Market volatility wasn’t helped by dueling statements from world
leaders. President Biden doubled
down on his support for Ukraine, reiterating that U.S. military aid would
continue. Meanwhile, Russian President Vladimir Putin responded
with ominous warnings, escalating fears of nuclear brinkmanship.

Investors have seen this geopolitical chess game before, but each new
round of tension tightens market nerves. The Biden administration’s firm stance
against Russian aggression, combined with NATO’s ongoing involvement, signals a
conflict that shows no signs of abating. And for markets, prolonged uncertainty
is as welcome as a market crash itself.

What’s Next? Strap in for More Volatility

As the Fear Index hovers near 2023 highs, analysts warn that the road
ahead will be anything but smooth. Volatility is likely to remain elevated as
traders attempt to price in the unpredictability of the Ukraine conflict.

Iodine. Interesting.

Tech stocks could face particular challenges, with their valuations
already stretched thin. Energy stocks, on the other hand, might see a temporary
boost as oil prices react to potential supply disruptions. Defense stocks are
also poised to gain as governments across Europe and the U.S. ramp up spending
in response to escalating geopolitical threats.

But for everyday traders, the best advice might be to sit tight and
avoid making emotionally driven decisions. In moments of market upheaval,
cooler heads prevail—or at least lose less.

For traders and investors, the challenge will be navigating this
turbulence while avoiding costly missteps. With the Fear Index at its highest
in over a year, it’s clear that the market isn’t ready to exhale just yet. Stay
nimble, stay informed—and maybe keep an eye on your stress levels while you’re
at it.

For more happy news as we slowly approach the festive season, follow
our Trending section.

This article was written by Louis Parks at www.financemagnates.com.

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