The FTSE 100 should start the week flat today as Bitcoin continued to make gains after last week’s decline despite the UK crackdown on Binance marketplace over money laundering concerns.
Binance Markets Limited – the UK branch of the premier crypto site, was ordered on Wednesday to cease advertising and to post a notice on its website advising that it is prohibited to conduct regulated business.
The regulator warned this month that many crypto exchanges were failing to meet their anti-money laundering standards and issued warnings to consumers over the weekend that it was unauthorized in the UK.
Although Binance said the move would have no impact on people’s ability to trade through its website, Binance.com, it is viewed as hugely damaging to the site and cryptocurrency efforts to be taken seriously as an investment.
It is reportedly possible to log into a Binance account with a fake name, address, and zip code and purchase cryptocurrency with different banking details. Banks, including TSB, are increasingly alarmed about fraud against their customers by scammers with Binance accounts.
The FTSE 100 should open flat at 7137 after Wall Street secured its strongest week for stock price gains since February.
President Joe Biden’s infrastructure spending deal overcame worries about rising inflation and interest rates, but those issues will surely return to the markets soon enough.
Price hikes are happening in both the UK and the US, and some economists are increasingly concerned that they will not be as temporary as central bankers think they will be.
CMC Markets analyst Michael Hewson noted, “Towards the end of the month and the end of the quarter, it is noteworthy that the stock markets will have closed five consecutive months in profit so far in 2021.”
Sajid Javid’s replacement of Matt Hancock sparked much speculation about a faster end to Covid lockdown restrictions that could help hospitality stocks and other businesses hardest hit by public freedom restrictions. However, the pound did not react over the weekend as City analysts were not convinced by the speculation.
CMC argued that on July 5, the government still had no way of easing restrictions as some have suggested, while infection cases in the north of England are increasing rapidly.
Oil engineer Wood Group’s shares could rise after it announced late Friday that it had entered into a delayed prosecution agreement with the Serious Fraud Office for a bribery and corruption investigation.
It said it also had agreements with the U.S. Department of Justice and the Securities and Exchange Commission, as well as authorities in Brazil, about Amec Foster Wheeler’s third-party use before Wood bought it in 2017.