Couchbase sinks 15% on ‘conservative’ guidance; analysts disagree with market reaction
Cathie Wood buys the dip in Coinbase shares amid SEC crackdown
Cathie Wood buys the dip in Coinbase shares amid SEC crackdown By Investing.com
Breaking News
‘;
Ambar Warrick/Investing.comStock Markets
Published Jun 07, 2023 01:17AM ET
(C) Reuters
Investing.com — Cathie Wood’s Ark Invest increased its stake in crypto exchange Coinbase Global Inc (NASDAQ:COIN) on Tuesday, as a crackdown by the Securities and Exchange Commission on the crypto industry saw the stock hit near five-month lows.
Data from the website Cathie’s Ark, which tracks the investment activities of the Ark group, showed that three funds under Cathie Wood bought a total of over 400,000 shares in Coinbase on Tuesday.
Her flagship ARK Innovation ETF (NYSE:ARKK) carried out most of the buying, adding over 300,000 shares.
This came as Coinbase’s share price plummeted as much as 20% after the SEC sued the firm over operating an unlicensed exchange, while also issuing cease and desist letters over its staking services.
“We allege that Coinbase, despite being subject to the securities laws, commingled and unlawfully offered exchange, broker-dealer, and clearinghouse functions,” SEC Chair Gary Gensler said in a press release.
Coinbase shares settled 12% lower on Tuesday, their second session of steep losses this week following a 9% tumble on Monday, after the SEC also sued world no. 1 crypto exchange Binance over similar charges.
But Coinbase shares rose 2% in aftermarket trading, boosted by news of the Ark buy.
Cathie Wood has repeatedly expressed confidence in Coinbase and the broader crypto industry, and has cited a $1 million long-term price target for Bitcoin on the belief that it is an effective inflation hedge.
Coinbase holds the fifth-largest weightage in Ark’s flagship Innovation ETF, with the fund having consistently accumulated the stock since its listing in 2021. But Coinbase has seen a sharp decline in value from 2021 highs, hitting record lows earlier this year as interest in crypto markets rapidly dried up amid rising U.S. lending rates.
The company has also struggled to remain profitable amid multiple failed ventures, regulatory hiccups, and mounting operational costs, especially as low crypto trading volumes hurt its transaction margins, which are a key source of revenue.
Bitcoin prices showed little reaction to the SEC move against Coinbase, rising 4% on Wednesday. But the world’s largest cryptocurrency was nursing steep losses through May, as trading volumes sank.
Cathie Wood buys the dip in Coinbase shares amid SEC crackdown
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Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
European stocks edge lower on global economic concerns
European stocks edge lower on global economic concerns By Investing.com
Breaking News
‘;
Peter Nurse/Investing.comStock Markets
Published Jun 07, 2023 02:23AM ET
Updated Jun 07, 2023 03:38AM ET
(C) Reuters
Investing.com – European stock markets retreated Wednesday, as investors digested worsening economic conditions ahead of next week’s key central bank meetings.
At 03:30 ET (07:30 GMT), the DAX index in Germany traded 0.3% lower, the CAC 40 in France fell 0.3% and the FTSE 100 in the U.K. dropped 0.2%.
German industrial production rose just 0.3% on the month in April, an improvement from the previous month’s revised 2.1% slump, but below the expected increase of 0.6% as Europe’s largest economy struggles to recover from its winter recession.
Yet, despite this weakness in the eurozone’s main growth driver, the European Central Bank is widely seen as continuing its rate-hiking cycle next week.
Executive Board member Isabel Schnabel stated in an interview with De Tijd newspaper, published Wednesday, that “we have more ground to cover,” and “it will depend on the incoming data by how much more rates will have to increase.”
There are a number of ECB officials speaking Wednesday, and investors will be looking to see how popular these hawkish comments are.
Data released earlier Wednesday pointed to a weak recovery in China, Asia’s largest economy and a major trading market for Europe’s largest companies.
China’s trade balance fell to a surplus of $65.8 billion in May, its lowest level since April 2022, when COVID shut down many markets around the globe. This drop was largely driven by a bigger-than-expected 7.5% decline in exports in May from the same period last year, although imports also fell 4.5%.
In corporate news, Diageo (LON:DGE) stock fell 0.6% after the world’s largest spirits company announced that CEO Ivan Menezes had passed away following a brief illness.
Danske Bank (CSE:DANSKE) stock rose just under 5% after Denmark’s largest lender raised its long-term earnings target and announced plans to divest its Norwegian retail business.
Oil prices retreated Wednesday after the weak Chinese trade data increased concerns about a slowdown in the country’s post-COVID economic recovery, undermining expectations that the world’s largest crude importer will drive oil demand to record highs this year.
Industry data released late Tuesday showed that U.S. crude inventories shrank more than expected last week, but an unexpected build in gasoline stocks hit sentiment in the middle of the U.S. driving season.
By 03:30 ET, U.S. crude futures traded 0.7% lower at $71.22 a barrel, while the Brent contract dropped 0.8% to $75.70.
These benchmarks have now reversed all the gains made earlier this week on the surprise announcement of additional supply cuts by Saudi Arabia, the de facto leader of the OPEC cartel.
Additionally, gold futures fell 0.4% to $1,972.80/oz, while EUR/USD traded 0.1% lower at 1.0680.
European stocks edge lower on global economic concerns
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Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Stitch Fix, Dave & Buster’s, Netflix rose premarket; Campbell Soup fell
Stitch Fix, Dave & Buster’s, Netflix rose premarket; Campbell Soup fell By Investing.com
Breaking News
‘;
Peter Nurse/Investing.comStock Markets
Published Jun 07, 2023 08:06AM ET
(C) Reuters.
Investing.com — Stocks in focus in premarket trade on Wednesday, June 7th. Please refresh for updates.
Stitch Fix (NASDAQ:SFIX) stock rose 7.5% the day after the online personal styling company reported better-than-expected third quarter results, helped by delivering efficiencies across the business.
Campbell Soup (NYSE:CPB) stock fell 1.9% after the packaged food giant beat quarterly profit estimates on the back of price hikes, but only maintained its annual forecasts suggesting ongoing caution.
Dave & Buster’s Entertainment (NASDAQ:PLAY) stock rose 3% after the restaurant chain’s first quarter earnings topped expectations, announcing further global expansion with plans to open 20 locations in India and Australia.
Coinbase (NASDAQ:COIN) stock rose 3.3%, helped by Cathie Wood’s Ark Invest increasing its stake in the crypto exchange even after the SEC sued the firm over operating an unlicensed exchange.
Netflix (NASDAQ:NFLX) stock rose 3.1% after JPMorgan lifted its price target on the streaming giant to $470, offering 18% upside while maintaining an ‘overweight’ rating, saying its password sharing crackdown can drive revenue growth.
Palantir Technologies (NYSE:PLTR) stock rose 2.8% after the data analytics firm signed a multi-year deal with Panasonic Energy of North America to deliver operations for its facility in Nevada.
Yext (NYSE:YEXT) stock soared 17.7% after the online marketing company reported strong first quarter results. Roth/MKM upgraded its stance to ‘buy’ from ‘neutral’, saying it is encouraged by management’s focus on sales execution and profitable growth.
Stitch Fix, Dave & Buster’s, Netflix rose premarket; Campbell Soup fell
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Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Dow futures fall just 10 pts; caution ahead of upcoming Fed meeting
Dow futures fall just 10 pts; caution ahead of upcoming Fed meeting By Investing.com
Breaking News
‘;
Peter Nurse/Investing.comStock Markets
Published Jun 07, 2023 07:10AM ET
(C) Reuters
Investing.com — U.S. stocks are seen opening largely unchanged Wednesday, consolidating recent gains amid uncertainty over the global economic outlook ahead of next week’s Federal Reserve policy-setting meeting.
At 06:55 ET (10:55 GMT), the Dow Futures contract was down 10 points, or 0.1%, S&P 500 Futures traded 2 points, or 0.1%, higher, while Nasdaq 100 Futures traded largely flat.
The main Wall Street indices closed marginally higher Tuesday, with the broad-based S&P 500 index adding 0.2% to its strongest level since August 2022. The tech-heavy Nasdaq Composite gained 0.4%, registering its highest close this year, while the blue chip Dow Jones Industrial Average gained just 10 points.
These gains follow last week’s blowout rally on the back of the agreement to lift the U.S. debt ceiling and Friday’s stellar jobs report.
The Organization for Economic Co-operation and Development lifted its forecast for global growth this year, expecting the world’s gross domestic product to expand by 2.7%, up slightly from its previous projection of 2.6%, citing lower energy prices and the re-opening of China’s economy.
However, when not including the pandemic-hit year of 2020, this would still be the lowest yearly rate since the 2008-2009 financial crisis, the OECD noted.
And trade data from China, released earlier Wednesday, showed that its exports contracted by more than expected in May, in a fresh sign of the headwinds facing the recovery of the world’s second-biggest economy.
Additionally, there remains uncertainty over what the Federal Reserve will decide to do with its interest rate-hiking cycle when it meets next week.
Futures traders are putting the possibility of a pause at around 79%, though there is still an expectation the Fed could resume its rate hikes at the July meeting as inflation remains elevated.
A pause would let policymakers assess the progress of their 10 rate increases since last year, bringing the Fed funds rate from near zero to over 5%.
In corporate news, Coinbase (NASDAQ:COIN) stock rose 2% premarket, rebounding slightly from a sharp decline on Tuesday after the Securities and Exchange Commission sued the firm over operating an unlicensed exchange.
Stitch Fix (NASDAQ:SFIX) stock gained over 7% after the online personal styling company reported better-than-expected third-quarter results, while restaurant chain Dave & Buster’s Entertainment (NASDAQ:PLAY) stock gained over 4% as its first-quarter earnings impressed.
The earnings season is coming to a close, but numbers are still expected Wednesday from the likes of spirits maker Brown Forman (NYSE:BFb), packaged foods giant Campbell Soup (NYSE:CPB) and video game retailer GameStop (NYSE:GME).
Oil prices reversed early losses Wednesday, as the positive OECD report overturned the weak sentiment generated by the weak Chinese trade data.
Traders will also study the official report on weekly U.S. crude stocks, due later in the session, after industry data released late Tuesday showed crude inventories shrank more than expected last week.
By 06:55 ET, U.S. crude futures traded 1.1% higher at $72.56 a barrel, while the Brent contract climbed 1.1% to $77.13.
Additionally, gold futures fell 0.1% to $1,978.75/oz, while EUR/USD traded 0.2% higher at 1.0718.
Dow futures fall just 10 pts; caution ahead of upcoming Fed meeting
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Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
4 big analyst picks: YEXT riding high
4 big analyst picks: YEXT riding high By Investing.com
Breaking News
‘;
Published Jun 07, 2023 07:21AM ET
Here is your Pro Recap of the biggest analyst picks you may have missed since yesterday: upgrades at Yext, McCormick, and Ultragenyx, and a Buy initiation at Super Micro Computer.
InvestingPro subscribers got this news before anyone else. Start your 7-day trial to get on board.
Yext upgraded to Buy following Q1 beat
Roth/MKM upgraded Yext (NYSE:YEXT) to Buy from Neutral and raise its price target to $12.50 from $8.50.
Shares surged more than 17% pre-market today following the company’s Q1 results, with EPS of $0.09 and revenue of $99.5 million coming in above expectations. Management’s Q2/24 and full-year guidance also beat the consensus estimates.
Roth/MKM said it is encouraged by management’s focus on sales execution and profitable growth, noting that the upcoming AI products unlock new TAM, and could help reposition the company as the de facto AI partner for large enterprises.
McCormick upgraded at BofA ahead of Q2 earnings
BofA Securities upgraded McCormick (NYSE:MKC) to Buy from Underperform and raised its price target to $100.00 from $75.00, as InvestingPro reported in real time.
The company is set to report its Q2/23 earnings on June 29. Street estimates stand at $0.57 for EPS and $1.66B for revenues.
2 more picks
Rosenblatt initiated coverage on Super Micro Computer (NASDAQ:SMCI) with a Buy rating and a price target of $300.00.
According to Rosenblat, the company’s TAM is expected to exceed $178 billion by 2027 supporting a sales CAGR of over 20%.
The company reported its Q3 results last month. While both EPS and revenues missed the consensus estimates, the company’s Q4/23 and full-year guidance came in above expectations.
Evercore ISI upgraded Ultragenyx (NASDAQ:RARE) to Outperform from In Line and raised its price target to $80.00 from $60.00.
Jump on the biggest news for your portfolio amid a barrage of market headlines: Always be the first to know with InvestingPro.
4 big analyst picks: YEXT riding high
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Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
SEC’s crypto lawsuits, Chinese trade data, OECD outlook – what’s moving markets
SEC’s crypto lawsuits, Chinese trade data, OECD outlook – what’s moving markets By Investing.com
Breaking News
‘;
Scott Kanowsky/Investing.comEconomy
Published Jun 07, 2023 05:11AM ET
(C) Reuters
Investing.com — Investors attempt to gauge the outlook for the cryptocurrency industry after the U.S. securities regulator sues two major crypto exchanges. Elsewhere, Chinese trade data points to sluggishness in the post-COVID recovery for the world’s second-biggest economy, while the OECD marginally upgrades its global growth outlook for 2023.
1. Traders react to SEC’s crypto crackdown
The price of the world’s top cryptocurrency Bitcoin surged by more than 4% on Wednesday, recovering from some losses in the prior session, as traders digested the impact of two lawsuits brought by U.S. regulators against leading crypto exchanges Coinbase Global (NASDAQ:COIN) and Binance.
Meanwhile, shares in Coinbase edged higher in premarket trading, rebounding slightly from a sharp decline on Tuesday after the Securities and Exchange Commission sued the firm over operating an unlicensed exchange. The dip added on to steep losses seen on Monday that were sparked by similar charges brought by the SEC against rival Binance.
Despite the crackdown, Cathie Wood’s Ark Invest has increased its stake in Coinbase, according to data from the website Cathie’s Ark, which tracks the Ark group’s investment activities. Wood’s flagship ARK Innovation ETF (NYSE:ARKK) carried out most of the buying, tacking on more than 300,000 shares.
Wood has repeatedly backed Coinbase and the broader crypto industry, arguing that Bitcoin could prove to be an effective inflation hedge.
2. Chinese exports drop
Chinese exports contracted by more than expected in May, in a fresh sign of the headwinds facing the country’s recovery after the lifting of harsh COVID-19 restrictions.
Exports declined by 7.5% during the month from the same period last year, data from the Customs Administration showed on Wednesday, as the world’s second-biggest economy was hit by weak overseas demand for its locally produced goods.
The reading had risen for the past three months as local manufacturers raced to meet pending orders after the anti-COVID rules were relaxed. But with that backlog cleared, Chinese firms are facing a dearth of new orders.
Imports also dropped by 4.5%, although this fall was less than estimates and slower than the 7.9% dip in April.
Factoring in both the export and import figures, China’s trade surplus unexpectedly slipped to a one-year low in May.
3. OECD lifts annual growth outlook, but headwinds remain
The global economy is now expected to grow at a marginally faster pace than previously anticipated in 2023, according to a new forecast on Wednesday from the Organization for Economic Co-operation and Development.
The Paris-based organization noted that lower energy prices are easing the strain on household budgets, while business and consumer sentiment are also improving. The re-opening of China has also helped to boost global activity.
As a result, in the OECD’s latest economic outlook, the group predicted that the world’s gross domestic product will expand by 2.7% this year, up slightly from its previous projection of 2.6%. However, when not including the pandemic-hit year of 2020, this would still be the lowest yearly rate since the 2008-2009 financial crisis, the OECD noted.
Meanwhile, growth is seen speeding up to 2.9% next year — an unchanged level from the OECD’s March predictions. During that time, the OECD expects a recent spate of central bank interest rises aimed at corralling inflation to gradually weigh more on private investment.
The OECD’s announcement comes after the World Bank also raised its 2023 global growth outlook on Tuesday, but flagged that tight monetary policy and the war in Ukraine are threatening the wider economy. It also slashed its 2024 forecast to 2.4% from a previous outlook of 2.7%.
4. Futures point lower
U.S. stock futures edged marginally into the red on Wednesday, but kept largely near the flatline, after the main indices rose in the prior session as traders looked ahead to the Federal Reserve’s all-important interest rate decision next week.
At 04:22 ET (08:22 GMT), the Dow futures contract had lost 62 points or 0.18%, S&P 500 futures dipped by 7 points or 0.16%, and Nasdaq 100 futures shed 43 points or 0.29%.
Strength in financial and consumer discretionary stocks helped boost gains on Wall Street on Tuesday, with the Dow Jones Industrial Average and S&P 500 both closing higher.
The tech-heavy Nasdaq Composite also ended at its best close so far this year despite renewed concerns over the cryptocurrency industry following the SEC’s complaints against Coinbase and Binance.
5. Oil volatile amid China recovery worries
Oil prices were choppy on Wednesday after the weaker-than-anticipated Chinese trade data exacerbated fears over a possible slowdown in the country’s nascent post-pandemic recovery and undermined hopes that the world’s biggest oil importer would be at the forefront of a surge in demand this year.
Meanwhile, industry data late on Tuesday showed that crude inventories in top oil consumer the U.S. shrank by more than expected last week. However, a build in gasoline stocks in the middle of the key U.S. summer driving season weighed on sentiment.
By 04:42 ET, U.S. crude futures traded roughly unchanged at $71.74 per barrel, while the Brent contract also oscillated around the flatline at $76.28 a barrel.
SEC’s crypto lawsuits, Chinese trade data, OECD outlook – what’s moving markets
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Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.