FIVE at FIVE AU: ASX maintains momentum; is crypto recovering; tax tips for maximising interest deductions

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The ASX rose 0.47% after a shaky start to the day, gaining 34.90 points to 7,492.20 and setting a new 100-day high.

Overall, the index has been on a solid upward trajectory this month, with only a slight early dip that was quickly recovered.

Today, the top-performing stocks were Breville Group (ASX:BRG) Ltd up 7.93%, and Block Inc (NYSE:SQ) up 5.94%

The latter’s ASX shares were dragged up by a 7.22% gain for the stock overnight in US markets, bringing the share price to US$81.66.

Breville Group Ltd, on the other hand, is likely enjoying a share price bump due to the Australian Foundation Investment (ASX:AFI) Co Ltd (AFIC) starting an investment position based on the company’s “product innovation and very strong global distribution”.

ASX sectors were mostly in the green today, Real Estate gaining 1.78% as the biggest winner and Industrials shedding 0.28% to be deepest in the red. Financials, Health Care and Consumer Staples also fell marginally.

Commodities were the opposite; down almost across the board but for tin, up 1.62%, and marginal gains in platinum, West Texas crude and aluminium.

Overall, the ASX200 has gained 5.41% since December 28, offering some hope to a beleaguered stock market.

Is crypto recovering?

Exness senior market strategist – MENA Wael Makarem asks whether current global economic conditions could support a cryptocurrency recovery.

Cryptocurrency prices continued to record improvements as sentiment among traders became less pessimistic.

The expectations of lower inflation, softer monetary policies and a possibly milder economic slowdown have helped prop up prices above last November’s peak.

Since China’s reopening, global economic expectations have improved despite the risks of COVID spreading in the country. Consumer behaviour during the Chinese New Year holidays could reveal how the local economy could impact sentiment.

Additionally, traders expect the Federal Reserve to further reduce the pace of interest rate hikes at their next meeting. This could lead to more risk-taking and a boost in cryptocurrency prices.

Among major cryptocurrencies, Bitcoin remains at the forefront and saw its market share recover quickly compared to other tokens, which recorded decreasing interest overall, including stablecoins.

Bitcoin could be the main beneficiary of the improving global conditions as previous failures among crypto companies continue to weigh on other assets.

Ethereum followed its larger counterpart in the same direction albeit at a slower pace. The cryptocurrency could see some volatility with the approach of the date for its Shanghai update. The latter could have a substantial impact on price with potentially more liquidity.

Overall, confidence in cryptocurrencies could improve as FTX and Genesis cases could continue to progress toward an orderly resolution in court.

Additional scrutiny, legislation, and regulation could improve the crypto markets’ appeal among institutional and individual investors which these big incidents have deterred.

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