London Stock Exchange Is Ready to Use Blockchain Technology

The stock exchange over 300 years old in the British capital is one of the oldest stock exchanges in the world. In the digital age, the floor is thinking of deploying new technologies like blockchain.

According to CNBC, Nikhil Rathi, CEO of London Stock Exchange, suggested that the blockchain, which is the technology to record data on a distributed computer network instead of focusing, could have applications in the stock exchange in England.

You can certainly visualize distributed ledger technology with applications during the release process. I can imagine the technology used to settle. Rathi said the London boss said that he found many different types of interesting ideas from rival exchanges and would follow up on which ideas the market was most interested in.

For example, the Swiss SIX platform is seeking to launch a platform based on the blockchain to speed up the transaction process, while the Gibraltar Stock Exchange launches a digital version of many securities, such as corporate bonds.

The London Stock Exchange recently bought a minority stake in Nivaura, which announced that they issued the world’s first automated cryptocurrency listed bonds. The floor said they tested the issuance, receipt, and transaction of shares with Nivaura in the managed “sandbox”. However, they did not say whether testing would be implemented in a real environment.

Many financial firms say they see great benefits for the industry from blockchain technology but are separating themselves from pre-coding. The first blockchain was created to make the public ledger for bitcoin transactions. For example, JPMorgan said it would roll its own cryptocurrency into USD and set aside for large payments. JPMorgan CEO Jamie Dimon meanwhile is the critic of pre-coding, calling bitcoin a fraud.

Rathi said that despite his support for competition and innovation in the capital market, some extreme manifestations in pre-coding made him a bit cautious. Cryptocurrency prices plummeted after a dizzying price rise in late 2017, early 2018. Bitcoin once reached $ 20,000 in December 2017, currently priced at $ 5,300-5,400, according to Coinmarketcap.

Chinese Stocks Fell Sharply as The Government Reduced Demand Stimulus

China’s stock market on April 25 saw the biggest drop in the past 6 weeks due to the growing concern of investors about the government’s ability to cut economic stimulus measures.

According to Bloomberg, the Shanghai Composite Index closed with a fall of 2.4%, bringing the total decrease from the beginning of the week to 4.5%. With such a decline, this week could become the strongest week of the index since the beginning of the year.

Stocks of telecommunications, technology, and consumer goods were not essential to lead the fall of the whole market. For every 10 stocks that have declined, there will be 1 gainer. Along with that, the exchange rate of the RMB against the US dollar dropped to the lowest level since the beginning of the month.

The mood of Chinese securities investors worsened from last week. After a meeting of the Politburo, the market raised rumors that the Government will cut measures to support the economy.

Earlier, growth stimulus measures have become the factor that led Chinese stocks to increase the world’s strongest since the beginning of the year. In the past year, Chinese stocks plunged due to the slowing economy and the US-China trade war.

In recent days, there are many forecasts that the US and China are about to come to a trade agreement. However, this assessment is not enough to lift the psychology of Chinese securities investors.

Strategist Zhang Gang of Central China Securities said that concerns about the possibility of policy shift are negatively affecting the market. Investors can hardly find any industry stocks that help them earn money at this time, so they feel an urgent need to leave the market.

The decline of Chinese stocks took place despite PBoC claims there was no change in monetary policy stance and no intention of tightening or easing policies. Northeast Securities strategist Zhengyang Shen commented that it seems that investors are rushing to sell stocks to take profits, taking into account changes in expectations of government stimulus measures.

US Stock Market This Week Increased Sharply

The US stock market closed near a record high on Friday after the country’s biggest bank – JP Morgan Chase announced better business results than expected.

According to Reuters news agency, with this rally, the S&P 500 is now less than 1% of the record high set in September last year. After the sell-offs at the end of last year, all three major indexes of US stocks in the first quarter of 2019 had the strongest increase in nearly a decade. However, this April, the market moved to a sideways trend before entering the first quarter business reporting season.

As one of the opening companies for the reporting season, JPMorgan Chase offers revenue and profit margins far beyond analysts’ forecasts. These figures help ease investors ‘previous concerns about the potential decline of listed companies’ profits. At the close, JPMorgan Chase gained 4.7% leading the rise of banking stocks.

Analysts now forecast the Q1 earnings of S&P 500 firms to fall 2.3% over the same period last year and improved compared to last week’s forecast. This will be the first time to reduce quarterly profits of Wall Street listed companies since 2016. However, among the S&P 500 companies that have announced their business results so far, there are 79, 3% gave results beyond the forecast.

Walt Disney shares rose 11.5%, reaching the highest level of all time, becoming the biggest boost for the rise of Dow Jones and S&P 500 after the company offered the price for online video transmission service. soon to be deployed. Netflix, Walt Disney’s rival in online video streaming, slipped 4.5%.

Closing the session on Friday, S&P 500 increased by 0.66%, reaching 2,907.41 points; Dow Jones increased 1.03%, reaching 26,412.3 points; and Nasdaq rose 0.46% to 7,984.16 points. Both Nasdaq and Dow Jones are currently about 1.5% lower than the record close.

For the whole week, the S&P 500 increased by 0.5%, Nasdaq increased by 0.6%, and Dow Jones fell by 0.1%. This is the third consecutive week of the S&P 500 and Nasdaq. Financial stocks were the biggest gainers this session, with an increase of 1.9% thanks to the positive business results report of JPMorgan Chase.