Crypto Market Shrugs Off DeFi Hacks — Market Talk

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1057 GMT - The cryptocurrency market has largely shrugged off recent Decentralized Finance (DeFi) hacks, LMAX Group strategist Joel Kruger says in a note. Hackers on Saturday drained nearly $300 million from a key piece of DeFi infrastructure. They targeted a cross-chain bridge to siphon about 116,500 of rsETH, a token issued by Kelp DOA. "The contained reaction reflects a growing distinction between protocol-specific vulnerabilities and the broader asset class, with investors viewing these incidents as isolated and avoidable rather than systemic threats," Kruger says. Bitcoin rises 0.3% to $76,570, LSEG data show. Ether falls 0.4% to $2,329. (renae.dyer@wsj.com)

1021 GMT - U.K. government bonds face increased volatility due to renewed political tensions and uncertainty around the Middle East conflict. U.K. Prime Minister Keir Starmer is under pressure after he admitted that he misled parliament over the appointment of former ambassador to the U.S. Peter Mandelson, who has been linked to convicted sex offender Jeffrey Epstein. Mandelson took up the role despite the security vetting body preferring he be denied clearance, former lead civil service servant Olly Robbins told parliament Tuesday. Political turmoil is hurting U.K. government bonds, ING's Michiel Tukker says in a note. With bonds already under threat from inflation, "the addition of political risk does not bode well," he says. Ten-year gilt yields climbed 3 basis points to 4.875% before retreating to 4.841%, Tradeweb data show. (miriam.mukuru@wsj.com)

1015 GMT - European currencies could suffer somewhat due to a significant rise in the price of memory chips in recent months, Commerzbank's Volkmar Baur says in a note. This could lead to another terms-of-trade shock for the eurozone and Europe, in general, in addition to the energy price shock stemming from the Iran war, he says. "Among the countries with the largest trade deficits are a few euro-area nations, including Italy, Portugal, and Germany." Poland, Hungary, the Czech Republic, and the U.K. also show a deficit. A large portion of memory chips exported from Asia to Europe are likely already installed in many electronic devices, he says.(renae.dyer@wsj.com)

1001 GMT - Treasury supply and private sector balance sheet capacity are starting to play a larger role in U.S. Treasury valuations, says T.Rowe Price's Steve Boothe in a note. This shift--from what he considers a Federal Reserve-dominated era that suppressed duration and volatility--is likely to push term premia higher and create a structural bias toward curve steepening, the fixed income portfolio manager says. "As a result, Treasuries are becoming a less reliable hedge, with higher rate volatility and more episodic correlation breakdowns verse risky assets," he says. Against this backdrop, large directional duration exposures appear less attractive, with a greater focus on curve positioning and relative value, he says. (emese.bartha@wsj.com)

0957 GMT - Sterling and U.K. government bonds will face selling pressure if U.K. Prime Minister Keir Starmer's leadership comes under threat after the May 7 local elections, Pepperstone's Michael Brown says. Labour lawmakers are expected to wait for the elections--where Labour is expected to perform poorly--before removing Starmer despite backlash over the appointment of Peter Mandelson, former U.K. ambassador to the U.S. who had links to late sex offender Jeffrey Epstein, he says. "No prospective leader will want to be the one having to 'own' what all indications point to being a bloodbath at the ballot box early next month." Starmer's potential resignation would lead to concerns that any successor would adopt much more expansionary fiscal policy, further straining public finances, Brown says. (renae.dyer@wsj.com)

0948 GMT - U.K. labor market data show the unemployment rate fell considerably, but the data should be interpreted with caution, T. Rowe Price's Tomasz Wieladek says in a note. The U.K. unemployment rate declined to 4.9% in the three months from December to February, from 5.2% in the three months to January. The improvement in the unemployment rate could be due to more accuracy in the data rather than "a genuine decline in unemployment," Wieladek says. Average earnings excluding bonuses slowed to 3.6% in the three months to February from 3.8% in the three months to January. "Overall, these data are still consistent with a slowing labor market, especially once the quality and accuracy revisions in the unemployment rate are taken into account," Wieladek says. (miriam.mukuru@wsj.com)

0944 GMT - The latest U.K. jobs data argues against the Bank of England raising interest rates significantly, MUFG Bank's Lee Hardman says in a note. Payrolled employees fell by 11,000 in March and private sector wage growth slowed to 3.2% in the three months to February. The soft labor market prior to the energy price shock provides some reassurance over the risk of higher inflation, Hardman says. This, alongside already restrictive policy rates, argues against aggressive tightening with just one rate rise likely, he says. "The recent scaling back of more aggressive BOE rate hike expectations has helped to dampen pound strength," he says. Sterling falls 0.2% to $1.3510 against a stronger dollar but trades flat versus the euro at 0.8709 per euro. (renae.dyer@wsj.com)

0941 GMT - The modest reaction in sterling and U.K. government bonds to the prospect of Prime Minister Keir Starmer resigning likely reflects the fact this risk isn't seen as imminent, Pepperstone's Michael Brown says. Sterling briefly fell and gilt yields briefly extended their rise after former lead civil service servant at the Foreign Office, Olly Robbins, told parliament he faced pressure from the Labour government to get Peter Mandelson to Washington quickly. Mandelson was former U.K. ambassador to the U.S. and had links to late sex offender Jeffrey Epstein. There doesn't seem to be any expectation that Labour lawmakers will seek to remove Starmer as leader before the local elections on May 7, Brown says. (renae.dyer@wsj.com)

0938 GMT - U.S. Treasury yields mostly rise ahead of Federal Reserve Chair candidate Kevin Warsh's Senate hearing which is expected to shed light on the future monetary policy framework. Focus also remains on Middle East developments amid uncertainty over U.S.-Iran negotiations. "While another round of talks is expected, the approaching ceasefire deadline could keep the market on edge," says Kudotrade's Konstantinos Chrysikos in a note. "Markets could see additional volatility and more demand for safe-haven assets if no formal agreement is put in place," he says. The two-year Treasury yield rises 1.9 basis points to 3.734% and the 10-year yield is up 0.6 basis points at 4.253%, according to Tradeweb. Thirty-year yields edge slightly lower. (emese.bartha@wsj.com)

0934 GMT - U.K. unemployment figures proved a mixed bag, Sandra Horsfield at Investec says in a note. The unemployment rate was below expectations at 4.9% in the three months to February. This wasn't a sign of an upturn in hiring, she says. "It mainly reflected a fall in the labor-force participation rate." The big questions are how resilient the jobs market will be to higher energy prices and whether workers will be able to negotiate higher salaries. "These will only be answered over the coming months," Horsfield says. The Bank of England will likely refrain from cutting interest rates until the implications of the Middle East war for inflation are clearer, she says, adding that cuts could be deferred until early 2027. (don.forbes@wsj.com)

0927 GMT - Thailand's tourism sector, which is one of the country's biggest engines of growth, could remain vulnerable in 2026 amid the Middle East conflict, OCBC Group Research says in a note. The share of GDP from Thailand's tourism has not recovered to pre-pandemic level despite a significant pick up in tourist activities from 2022 to 2024. The sector could also be weighed by rising oil prices, disruption in global flight paths, higher airfares and a slowdown in tourist bookings. "Thai authorities are trying to attract tourists from alternative source destinations through regional and domestic tourism campaigns," OCBC says. (amanda.lee@wsj.com)

0926 GMT - The U.K.'s drop in its unemployment rate appears to be driven by a spike in economic inactivity as opposed to a rise in employment, ING's James Smith says in a note. The jobless rate dropped to 4.9% in the three months to February, from 5.2%, though crucially this doesn't appear to be because of a big shift into work, he says. That's backed up by more timely data on company payrolls, showing private-sector employment continuing to drop, driven primarily by consumer services, Smith says. More importantly, unemployment is likely to rise again as the energy crisis takes its toll on the jobs market. "That's why we don't currently expect the Bank of England to hike rates this year," he says. (edward.frankl@wsj.com)

source: https://www.tradingview.com/news/DJN_DN20260421003072:0/