Miners support FTSE 100 but Bitcoin losses drive strategy rout
The FTSE 100 has held steady all day, but the selling in bitcoin and Strategy has stepped up a gear, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.
FTSE 100 flat as commodity prices rebound
The index has held its ground all day thanks to its mining sector. A resurgent metals complex has helped bolster the likes of Anglo American and Glencore, while fresh gains for gold and silver have provided the fuel for renewed upside in Fresnillo and Endeavour Mining. The index’s strong holding action comes as European stocks come under fresh pressure, while it continues to beat the S&P 500 on year-to-date returns.
Bitcoin slump drives Strategy losses
Bitcoin’s ongoing slump has been a disaster for Strategy, as the stock hits fresh one-year lows. Many had hoped that the lows last week in bitcoin would mark a recovery for the stock, but while the cryptocurrency is still above the November low the selling appears to be intensifying as the afternoon goes on. The movement is turning into a capitulation moment, but there are precious few buyers willing to step in at these levels.
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