A tough year ahead, betting on China, Tesla disappointing deliveries, happy birthday bitcoin!

US stocks were unable to hold onto earlier gains as restrictive policy and recession fears remained front and center for investors. Discount buying triggered another bear market rebound that didn’t last long at all. It is too early to start betting on a Fed pivot this year and that should make this a difficult environment for stocks.

China

China’s reopening and bets that PBOC will cut rates in the first half of the year should help keep Chinese stocks supported. ​ After a couple of bad years, Wall Street is wondering if Chinese stocks could outperform if their Covid reopening continues without any major disruptions. ​ China still has to deal with a struggling property market, but hopefully, it will show signs of improving on more support measures.

Tesla

Demand woes are killing Tesla shares. ​ The fourth quarter update was very disappointing as they are struggling to deliver cars. ​ Tesla is battling rising competition, a weakening consumer, and lower gas prices. ​ Tesla might be a long-term hold for many investors, but right now it seems the path of least resistance is lower for Tesla’s stock price.

Bitcoin

Happy Birthday, Bitcoin! It should come as no surprise that this teenager of an asset class has constant mood swings. ​ Much attention is going to Sam Bankman-Fried’s day in court which is expected to have him plead not guilty to an eight-count fraud and conspiracy indictment.

This is still a difficult time for crypto as everyone waits to see which will be the next crypto company to fail. ​ Regulation is taking its time but guidelines should start to take hold this year. ​ A top US regulator delivered a joint warning on crypto activities, which did not contain any new risks. ​

Bitcoin appears anchored but it is still not clear when we will test and possibly make a new bottom.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Ed Moya

Senior Market Analyst, The Americas at OANDA

With more than 20 years’ trading experience, Ed Moya is a senior market analyst with OANDA, producing up-to-the-minute intermarket analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies.

Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news.

Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business and Sky TV. His views are trusted by the world’s most renowned global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal.

Ed holds a BA in Economics from Rutgers University.