© Reuters
Investing.com – The US Securities and Exchange Commission is suing digital coin exchange Binance amid increasing regulatory scrutiny of the cryptocurrency industry. Meanwhile, Apple is unveiling a new mixed-reality headset that’s being touted as the tech giant’s most important new piece of hardware since the iPhone, but Wall Street remains unsure how consumers will react to the device’s steep price tag.
1. SEC sues Binance
The price hovered near a two-and-a-half-month low on Tuesday after a sharp decline was sparked by news that a major U.S. regulator had sued Binance, the world’s largest cryptocurrency exchange.
In one filing, the Securities and Exchange Commission filed thirteen civil lawsuits against Binance, including allegations that the company diverted customer funds to a trading company controlled by CEO Changpeng Zhao. The SEC added that this trading firm also used manipulative tactics to increase Binance’s trading volume.
The SEC complaint also said Binance operated unregistered exchanges. In one section of the document, an unnamed Binance chief compliance officer is quoted as saying in 2018, “We’re operating as a friggin’ unlicensed securities exchange in the US, bro.”
The allegations have been seen as the latest legal crackdown on the cryptocurrency industry, which has been under the close scrutiny of US authorities since the collapse of Binance competitor FTX last year.
For its part, Binance has denied the allegations, saying that users’ assets on its US platform have never been compromised. However, it found that it is complying with SEC investigators.
2. Apple’s ambitions for Vision Pro
Apple (NASDAQ:) unveiled high expectations for its new Vision Pro mixed-reality headset at an event Monday, claiming it’s “the most advanced personal electronics device ever.”
The Vision Pro nestles around the head, creating an experience that allows users to both immerse themselves in computer-generated virtual reality and interact with digital objects overlaid on the real world.
Apple hopes the Vision Pro, due to launch early next year, will become the must-have device in the AR/VR products market, much like its iPhone has been at the forefront of mobile computing for more than a year ago Decade.
However, Wall Street may not yet be convinced of its potential. Apple’s stock price closed slightly lower on Monday, despite hitting an all-time high earlier in the session, in a sign investors may be worried about how the headset’s eye-watering $3,499 price tag will expand to the broader one will affect demand.
In fact, analysts at Davidson said in a note to clients that while they believe the Vision Pro may be the “most significant new hardware product since the iPhone,” there are still “key structural challenges” facing AR/VR technology adoption faced by consumers.
3. RBA hikes rates again
The Reserve Bank of Australia rose to an 11-year high on Tuesday, hinting it may raise borrowing costs even more to help lower higher interest rates.
The decision came as a bit of a surprise to markets, which had broadly expected the RBA to suspend rate hikes at its June monetary policy meeting.
But the price growth is still too high, according to the RBA. In addition, the bank refrained from stating in several previous statements that its “medium-term inflation expectations remain well anchored”, which analysts took as a hawkish sign that it was less confident on its estimated price path.
Policymakers at other central banks around the world are similarly trying to contain stubbornly high inflation despite more than a year of tightening campaigns.
In the US, the Federal Reserve is considering potentially “skipping” an hike at its much-anticipated two-day meeting later this month. The move would end a string of 10 consecutive rate hikes.
4. Futures fall easily
US stock futures pointed slightly lower, but mostly hovered around the zero line after Wall Street stocks ended lower in the previous session.
As of 05:13 ET (09:13 GMT), the contract was down 43 points, or 0.14%, down 4 points, or 0.09%, and remained broadly flat.
Major indices fell on Monday, partially reversing a rally from the previous week, with announcements from Apple’s closely-watched developer conference among the biggest market drivers.
Apple shares were jittery after the launch of the Vision Pro but ultimately ended the day lower, while the tech giant’s release of a new chip caused semiconductor company Intel (NASDAQ:) to fall.
5. Oil falls on US growth concerns
Oil prices fell on Tuesday as worries about the US economic outlook scrapped Saudi Arabia’s commitment to further cut production, which helped fuel a rally in the previous session.
At 05:14 ET, futures were trading 2.16% lower at $70.59 a barrel, while the contract slipped 2.01% to $75.17 a barrel.
Saudi Arabia, the world’s largest exporter, promised over the weekend an additional cut in production of around a million barrels a day from July compared to its May production level in a bid to boost falling crude prices.
Investors also focused on data showing activity in the key US sector picked up modestly in May, adding to concerns over the overall health of the world’s biggest oil consumer, analysts cited by Reuters said.
Meanwhile, traders were also engaged in the debate surrounding the Fed’s interest rate path. A rate hike by the central bank could weigh on oil demand.
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