Global Markets Keep Steady, Dogecoin Surges on Musk Tweets

04 Feb 2021 · 3rd Party Analysis

WRITTEN BY ThorFX

In Summary

  • European markets open fairly flat
  • US futures remain slightly to the upside as earnings continue

European markets open the Thursday session fairly flat and slightly to the upside. Major indexes, DAX, CAC40, and FTSE100, rise some 0.30% each in the early trading hours. The European market is now in its fourth straight day of gains as stocks in the drug sector lead the way on Thursday. Novartis, the Swiss drugmaker, is up over 1.20%, while the UK drug manufacturer GlaxoSmithKline rises nearly 3%. On the other end, Unilever disappointed investors as its profits declined last year, according to the latest earnings report. The company’s stock is down by roughly 5%.

US futures look mixed, with slight gains ahead of the opening later. A three-day rally in global stocks seems to have paused to catch a breath as the buying momentum has decreased today. Earnings season continues with investors focused on today’s reports after the closing bell.

The earnings season remains one of the more interesting stories in the market, even though it has produced mixed results for companies. Nonetheless, this season has been one of the best earnings seasons in terms of companies beating estimates during a global pandemic. Given the times at which the earnings cycle is released, the expected downward pressure did not hold back record performances, especially for tech companies. Reporting earnings today are large-cap companies like Roche Holding, Merck, T-Mobile, Bristol-Myers Squibb, and Shell.

Elon Musk’s Tweet Spark Another Doge Surge

Over to the cryptocurrency market, Bitcoin is moving higher on the day, up about 3% on Thursday. The apex digital coin was trading mostly flat this week, hovering around the $35,000 mark. Presently, Bitcoin is closing in on $38,000 as buying momentum has been renewed. Ethereum is soaring at its highest levels ever after going above $1600. The second most valuable coin has enjoyed a wave of buyers this week while Bitcoin was largely pushed off. Ethereum is now trading near $1630 and boasts a market cap of $187bn. Crypto traders and investors appear to have been favoring alternative coins recently such as Dogecoin, which decreased Bitcoin’s share in the market to almost 61%, down from 71% at the beginning of January. The total crypto market cap currently stands at $1.1tn

Doge, a cryptocurrency created as a joke and famous for its wild volatility even for the crypto space, surged 50% Thursday morning, adding some $3bn to its market cap. The spike came after Tesla CEO Elon Musk posted a series of tweets related to the coin. Firstly, Elon Musk removed the Twitter bio which only said #bitcoin, and then followed with a tweet of a single word “doge”. He then tweeted an image of him holding the meme coin, borrowing a scene from the Lion King. The next few tweets, “dogecoin is the people’s crypto”, “no need to be a gigachad to own”, “no highs, no lows, only doge” and “I am become meme, destroyer of shorts”, all caught the attention of the crowds who raced to buy Dogecoin. Two days before the tweets, Elon Musk announced on Twitter that he will be off social media for a while.

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