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U.S. Job Openings Hit a Record High, DAX 30 Declines & Coinbase Faces Potential SEC Lawsuit

U.S. Job openings rally to record high

Job openings in the United States rose to their highest on record, as employers began to ramp up their post-summer hiring process.

Figures released by the Labor Department showed that JOLTS rose by 749,000 in July, taking job openings to 10.9 million.

💡How Job Openings Affect the Economy
Creating jobs helps the economy by increasing gross domestic product (GDP). When an individual is employed, they are paid by their employer. The more an individual spends the more that demand increases. When demand for a product or service increases, companies increase their output to meet the increased demand.

Wednesday’s figures are the highest-level JOLTS have been at since the report started almost 21-years ago.

Many believe that now that the government-funded unemployment benefits scheme has expired, Americans will begin rushing back to work.

As of writing, the S&P 500 and Dow Jones were down 0.20% – 0.25% respectively, with the NASDAQ trading 0.61% lower.

DAX 30 declines in anticipation of ECB meeting

Germany’s DAX 30 was also trading lower on Wednesday, as traders operated with caution ahead on tomorrow’s ECB meeting.

The European Central Bank will be holding its monthly meeting on Thursday, where it will outline any updates to its monetary policy.

💡Difference Between How the U.S. and European Markets React to Monetary Policies
Monetary policy announcements work differently in the euro area than in the United States. While in the United States the monetary policy decisions and the statement explaining the decisions are made public at the same time, the ECB announces the policy decision and the explanatory statement at different times.

Although many believe that the ECB will keep interest rates unchanged, it is anticipated that the bank will announce a reduction to its asset purchasing program.

Traders will also be looking for any hints as to when the bank may decide to begin increasing interest rates.

The DAX closed 1.47% on the news, with EURUSD hitting an intraday low of 1.1802.

Coinbase shares fall on potential SEC lawsuit

Shares in cryptocurrency exchange Coinbase were down today, as it was reported that the company had received a possible enforcement action from the SEC.

It was reported that the Securities and Exchange Commission had approached Coinbase regarding its upcoming Coinbase Lend service, which is said to be violating SEC regulations.

💡Coinbase Key Takeaways
Back in April Coinbase marked a milestone for Crypto as it released its Initial Public Offering (IPO).

Programs that allow owners of cryptocurrencies to lend them in return for interest are becoming more common around the world, but some regulators, particularly in the United States, have started to raise concerns, arguing that such products should comply with existing securities laws.

Coinbase Lend is an interest-earning product, which is scheduled to be launched in the coming weeks.

However, the potential suit seems to have caught Coinbase CEO Brain Armstrong off-guard, with him stating that, “We’re committed to following the law. Sometimes the law is unclear. So, if the SEC wants to publish guidance, we are also happy to follow that”.

$COIN was down 2.15% as of writing.

Quote of the day – “Confidence is not ‘I will profit on this trade.’ Confidence is ‘I will be fine if I don’t profit from this trade.”

– Yvan Byeajee

Eliman Dambell

Senior Market Analyst