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ASX tech shares are having a tough day today. The S&P/ASX All Technology Index (ASX: XTX) is currently down by more than 5%.

Some of the biggest names in the technology sector are seeing the worst falls. For example:

• The Xero Limited (ASX: XRO) share price is down 12%
• The Life360 Inc (ASX: 360) share price is down 9.5%
• The Block Inc (ASX: SQ2) share price is down 15%
• The Altium Limited (ASX: ALU) share price is down 11%
• The WiseTech Global Ltd (ASX: WTC) share price is down 4.5%
• The REA Group Limited (ASX: REA) share price is down 3.5%
• The SEEK Limited (ASX: SEK) share price is down 3.7%

Not every business in the S&P/ASX 200 Index (ASX: XJO) is seeing a decline, though the index is currently down 1%.

The Commonwealth Bank of Australia (ASX: CBA) share price is up 1% after the big four bank reported its quarterly update. The BHP Group Ltd (ASX: BHP) share price is up 0.3% as well.

Why are ASX tech shares hurting so much?

Sometimes, the ASX tech sector is influenced by what happens to international tech shares during the US trading session.

Overnight, the Nasdaq 100 Index (NASDAQ: NDX), which is made up of many of the world’s largest tech names, dropped by 3%. The Apple Inc (NASDAQ: AAPL) share price fell 5.2% and the Microsoft Corporation (NASDAQ: MSFT) share price dropped 3.3%. The Meta Platforms Inc (NASDAQ: FB) share price declined 4.5% and the Amazon.com Inc (NASDAQ: AMZN) share price dipped by 3.2%. The Tesla Inc (NASDAQ: TSLA) share price sank 8.25%.

But there’s another question – why did those shares fall so much?

There has been a lot of market focus on how strong inflation is at the moment. The latest US inflation data was just released and the 12-month percentage change for the consumer price index was 8.3%.

This wasn’t quite as strong as the 40-year high of 8.5% registered in March but it remains elevated. Seasonally adjusted, there was a month-on-month increase of 0.3%.

According to Bloomberg, the core CPI was higher than all estimates in a Bloomberg survey of economists. The news outlet reported that investors are expecting ongoing strong moves by the US Federal Reserve to try to control inflation. There are more expectations for four straight 50-basis-point increases.

Bloomberg reported that Robert Frick, corporate economist at Navy Federal Credit Union, said: “The peak of inflation may be behind us, but today’s CPI report points to a long, slow descent or maybe even a plateau around 8%.”

Why interest rates are important for asset valuations

Interest rates are seen as an important influencer on asset prices, including ASX tech shares.

Warren Buffett once said:

The value of every business, the value of a farm, the value of an apartment house, the value of any economic asset, is 100% sensitive to interest rates because all you are doing in investing is transferring some money to somebody now in exchange for what you expect the stream of money to be, to come in over a period of time, and the higher interest rates are the less that present value is going to be. So every business by its nature … its intrinsic valuation is 100% sensitive to interest rates.

The post Thursday thrashing: ASX tech shares tumble appeared first on The Motley Fool Australia.

More reading

• Blockdown! Why is the Block share price crashing by 16% today?
• Why is the WiseTech share price slipping 5% lower today?
• ASX 200 midday update: CBA’s Q3 update impresses, Xero and Block crash
• Zip share price tumbles 5% to another multi-year low
• How much further can ASX 200 tech shares tumble? Macquarie weighs in

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tristan Harrison has positions in Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, Amazon, Apple, Block, Inc., Life360, Inc., Meta Platforms, Inc., Microsoft, Tesla, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended Block, Inc., WiseTech Global, and Xero. The Motley Fool Australia has recommended Amazon, Apple, Meta Platforms, Inc., REA Group Limited, and SEEK Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The WiseTech Global Ltd (ASX: WTC) share price is tracking lower today and is now down 4.67% at $39.15.

While there’s been no market-sensitive information released by the company today, in wider market moves, the S&P/ASX All Technology Index (ASX: XTX) is 5.19% in the red at the time of writing.

What’s up with WiseTech?

Tech and growth-type shares have each taken a beating in 2022 and the downward momentum appears to have carried into the third quarter of this financial year.

WiseTech shareholders have seen their positions oscillate over the past three months with shares collapsing from a high of $53.21 in early April.

In the last month of trade, WiseTech shares have sunk almost 20% into the red. They are down 33% this year to date and are now resting at six-month lows.

Both upward momentum and sentiment appears to be lowly in the WiseTech share price.

In fact, analysts are even calling for the company to create a catalyst to drive its shares higher – perhaps through an acquisition, according to the team at Macquarie.

“A transformative acquisition could provide a positive share-price catalyst for WiseTech,” Macquarie analysts wrote in a recent note.

However, the broker also thinks WiseTech won’t spend more than US$400 million, even though it could probably search for a transaction in the realm of US$1 billion.

Macquarie is neutral on WiseTech and values the company at $45 per share, holding the same view as six other brokers – 50% of coverage, according to Bloomberg data.

Meanwhile, the consensus price target from all analysts is $48.57 per share, implying around $10 of further upside if the crowd has it valued correctly.

WiseTech share price snapshot

In the last 12 months, the WiseTech share price has held onto a 46% gain, However, it is trading deep in the red for 2022.

It is also down 7% over the past week.

The post Why is the WiseTech share price slipping 5% lower today? appeared first on The Motley Fool Australia.

More reading

• ASX 200 tech shares are staging a remarkable recovery today
• Why did the Xero share price just rebound 6%?
• Here’s why ASX 200 tech shares are having such a disastrous run on Friday
• The WiseTech share price has tumbled 20% in a month. Is it a bargain?
• The Appen share price is soaring 5% on Thursday. Could this be why?

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Cryptocurrencies continued to struggle today as the market continues to navigate a worrisome macro outlook that is leading to a sell-off of riskier assets.

Over the last 24 hours, the price of the world’s largest cryptocurrency, Bitcoin (CRYPTO: BTC), was trading roughly flat at 10:56 a.m. ET today. However, Bitcoin briefly dropped below $30,000 today for the second time this week and is down more than 12% over the last five days.

The price of Dogecoin (CRYPTO: DOGE) had fallen roughly 16% over the last day at the same time, and the price of Shiba Inu (CRYPTO: SHIB) had fallen roughly 17.5%.

So what

Cryptocurrencies haven’t fared much better than tech stocks in recent months, as the Federal Reserve first tightened and then raised its benchmark overnight lending rate, the federal funds rate. It has raised that rate roughly 0.75% over its last two meetings, including with a half-point hike at its meeting earlier this month. When the Fed hikes rates, it makes safer assets like U.S. Treasury bills, which are guaranteed by the U.S. government, yield more. That makes investors demand higher returns from other riskier assets, which can put pressure on them.

“This further supports the case that bitcoin investors were seeking to de-risk, sell or add collateral to margin in response to market volatility,” analysts from the blockchain company Glassnode wrote in a report earlier this week.

Additionally, inflation has remained high. New data from the Bureau of Labor Statistics showed that the Consumer Price Index, which tracks the prices of common everyday goods and services, was up 8.3% year over year in April. That’s down slightly from the increase in the CPI in March but more than the 8.1% increase that experts and analysts had been predicting. 

“We’re starting to see energy [costs] pull back a little bit, but it’s not enough,” said Kathy Jones, the chief fixed-income strategist at Charles Schwab, according to CNBC. “The markets were hoping for a better number and it’s not good enough to rule out more Fed tightening.”

Many have long seen Bitcoin as a good hedge against inflation due to its finite supply of 21 million tokens. But so far there’s been no real proof of that, as the price of Bitcoin is now down more than 50% over the last six months.

Now what

I don’t see much news on the meme tokens Dogecoin and Shiba Inu, but I think they are struggling along with the broader altcoin market.

While they definitely trade with some correlation to Bitcoin, altcoins like this are arguably even riskier because they are not being driven by any kind of fundamentals in the first place, but really by their ability to build a community and investor excitement around themselves.

Additionally, there is likely no chance that either Dogecoin or Shiba Inu could ever hedge inflation due to their huge supplies. Dogecoin has no supply limit, while Shiba Inu’s is 1 quadrillion tokens, although there are currently 549 trillion tokens still in circulation.

Ultimately, I am pretty bearish on Dogecoin and Shiba Inu but still believe in Bitcoin as a long-term buy and hold. Every day, more of the traditional financial system seems to adopt Bitcoin and use blockchain technology.

I also believe there is the potential for cryptocurrencies to gain more adoption among consumers for daily transactions and payment purposes, which would also likely be good for crypto prices. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Dogecoin and Shiba Inu are tumbling today appeared first on The Motley Fool Australia.

More reading

• Why Ethereum, Dogecoin, and The Sandbox dropped today
• Here’s what happened with Dogecoin in April
• Why Shiba Inu was falling today
• Why Shiba Inu, Ethereum, and Dogecoin are sinking today
• Why Dogecoin is rising today

Charles Schwab is an advertising partner of The Ascent, a Motley Fool company. Bram Berkowitz has positions in Bitcoin. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Charles Schwab. The Motley Fool Australia owns and has recommended Bitcoin. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Galileo Mining Ltd (ASX: GAL) share price fell heavily in early morning trade, reaching an intraday low of 52 cents — down 18.75% on yesterday’s close — shortly after the open.

The ASX mining share has since recovered and is now up 2.36% to 65 cents at lunchtime.

There’s been no price-sensitive news out of Galileo’s camp today. However, its share price is coming off a near-220% gain in yesterday’s session.

What’s up with the Galileo Mining share price?

ASX investors rallied behind Galileo yesterday following the release of a company announcement.

The company announced it had intersected significant palladium, platinum, copper, gold, and nickel mineralisations at its 100%-owned Norseman project in WA.

The project contains “278km2 of prospective ground at the southern end of the prolific Norseman-Wiluna greenstone belt”. The tenements are reportedly prospective for several minerals such as nickel sulphide, gold, lithium, and nickel-cobalt.

As we reported yesterday: “The 33 metre intersection is within a broader 55 metre disseminated sulphide zone. Galileo said this shows the potential for a large mineralised system.”

Meanwhile, the company mentioned that it remains fully funded with $8.2 million available for this quarter in order to “continue aggressive exploration programs at all [its] projects”.

The Galileo Mining share price exploded on the news, hitting an all-time high of 66 cents. It closed the session at 63.5 cents.

Trading volume was extremely high yesterday and that momentum has continued today. At the time of writing, the number of Galileo shares already swapped today is 196% of Galileo’s four-week average.

The company followed up today with an investor presentation and webinar. They outline the value proposition and investment opportunity of the discovery, in addition to news on other joint ventures and assets.

Specifically, Galileo Mining mentioned it is a “[w]ell funded and supported junior exploration company …[with] highly prospective Norseman & Fraser Range projects … “.

Galileo Mining share price snapshot

In the past 12 months, the Galileo Mining share price has soared by more than 150%. It is up 185% for the year to date.

The post Why did the Galileo Mining share price tumble 18% in early trading on Thursday? appeared first on The Motley Fool Australia.

More reading

• Galileo Mining share price explodes 150% on major discovery

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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At lunch on Thursday, the S&P/ASX 200 Index (ASX: XJO) has followed Wall Street’s lead and tumbled lower. The benchmark index is currently down 0.75% to 7,010.7 points.

Here’s what is happening on the ASX 200 today:

CBA Q3 update impresses

The Commonwealth Bank of Australia (ASX: CBA) share price is pushing higher today. This follows the release of a third-quarter update that came in ahead of expectations. For the three months ended 31 March, compared to the quarterly average during the first half, CBA reported a 1% decline in operating income to $6,103 million and flat cash earnings of $2,400 million. The latter was 6% ahead of the Citi’s expectations and 9% ahead of the analyst consensus estimate.

Xero full-year results disappoint

The Xero Limited (ASX: XRO) share price has crashed to a new 52-week low on Thursday after the cloud accounting platform provider’s full-year results disappointed. Xero reported a 29% increase in revenue to NZ$1.1 billion and an 11% lift in earnings before interest, tax, depreciation and amortisation (EBITDA) to NZ$212.7 million. This was underpinned by a 19% increase in total subscribers to 3.3 million. However, according to Goldman Sachs, Xero’s missed on revenue, EBITDA, and subs growth.

Tech shares pummelled

The main drag on the ASX 200 on Thursday has been the tech sector. A selloff on the tech-focused Nasdaq index on Wednesday night has led to the S&P/ASX All Technology Index falling 5.2% today. Among the worst performers are Xero and Block Inc (ASX: SQ2). The latter is down 15% following a similar sharp decline by its NYSE listed shares on Wall Street overnight.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the Orica Ltd (ASX: ORI) share price with a 7% gain. This follows the release of the commercial explosives company’s half-year results. Going the other way, the Block share price is the worst performer with a 15% decline.

The post ASX 200 midday update: CBA’s Q3 update impresses, Xero and Block crash appeared first on The Motley Fool Australia.

More reading

• CBA share price pushes higher on consensus-beating quarterly update
• Zip share price tumbles 5% to another multi-year low
• How much further can ASX 200 tech shares tumble? Macquarie weighs in
• Xero share price sinks 10% to 52-week low following FY22 results miss
• Orica share price spikes amid 25% jump in sales revenue

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc. and Xero. The Motley Fool Australia has positions in and has recommended Block, Inc. and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Rhythm Biosciences Ltd (ASX: RHY) share price is on a rollercoaster ride today following the company’s latest release.

It surged 11.57% at market open today before falling to $1.18 — 2.5% lower than its previous close. However, the medical device company’s shares have since bounced back and are now swapping hands for $1.27 — a 4.96% gain on the day.

For context, the All Ordinaries Index (ASX: XAO) is currently down 0.84%.

What did Rhythm announce?

The Rhythm Biosciences share price is bouncing around today after the company advised it has filed with the Australian Therapeutic Goods Administration (TGA) for the listing of ColoSTAT on the Australian Register of Therapeutic Goods (ARTG).

An experimental test kit, ColoSTAT is being developed as a low-cost, easy-to-use blood test to detect colorectal cancer.

The regulatory milestone would pave the way for the company to market and sell ColoSTAT within Australia.

Rhythm noted that the lifesaving cancer detection technology can potentially make a meaningful difference to millions of people around the world. 

With filing now completed, the TGA will assess Rhythm’s ARTG listing submission and hopefully provide final approval to begin commercial activities.

The company anticipates the review process will be finalised within the next three to six months.

In the interim, Rhythm is focusing on executing across a number of key technical, administrative, and logistical activities for ColoSTAT. This includes supporting the pathway to market entry, both domestically and internationally, later this year.

Commenting on the news that appears to be driving the Rhythm Biosciences share price today, CEO and managing director Glenn Gilbert said:

This is an exciting time for all Rhythm stakeholders and indeed global cancer diagnostics markets. The team continues to diligently execute on our plans as we target ColoSTAT revenues in late CY22.

We are very close to being in a unique position to transform and revolutionise the colorectal diagnostics market with our lifesaving cancer detection technology.

Rhythm Biosciences share price snapshot

The Rhythm Biosciences share price has accelerated by 46% in the past 12 months, reflecting positive investor sentiment. The company’s shares reached an all-time high of $2.08 in November, before treading lower.

At today’s prices, Rhythm presides a market capitalisation of roughly $256.89 million, with approximately 214.08 million shares on issue.

The post Rhythm Biosciences share price lifts 5% on TGA news appeared first on The Motley Fool Australia.

More reading

• CBA share price pushes higher on consensus-beating quarterly update
• Own APA shares? Here’s the latest on the company’s ‘ground breaking’ green hydrogen project
• CSL share price cracks under Vifor Pharma acquisition delay
• Bitcoin price plunges below US$30,000. What’s going on?
• Zip share price tumbles 5% to another multi-year low

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Commonwealth Bank of Australia (ASX: CBA) share price is rising on Thursday.

In morning trade, the banking giant’s shares are up 0.7% to $102.19.

This compares favourably to a decline of 0.8% by the ASX 200 index.

Why is the CBA share price rising?

Investors have been bidding the CBA share price higher today after responding positively to the bank’s third-quarter update.

For the three months ended 31 March, compared to the quarterly average during the first half, Australia’s largest bank reported a 1% decline in operating income to $6,103 million and flat cash earnings of $2,400 million.

This reflects 3% volume growth and higher non-interest income, which helped offset continued margin pressure from elevated swap rates, mix effects, and competition.

How does this compare to expectations?

As you might have guessed with the CBA share price outperformance today, this result was better than the market was expecting.

For example, the team at Goldman Sachs note that the bank’s quarterly cash earnings are run rating 10% ahead of its second half forecasts. It said:

Cash profit from continuing operations in 3Q22 of c.A$2.4 bn was flat on the 1H22 quarterly average but run-rating c.10% ahead of what is implied by our 2H22E forecasts.

And while the broker acknowledges that a bad and doubtful debts (BDDs) benefit helped drive the stronger than expected result, it highlights that its pre-provisioning operating profit (PPOP) was still ahead of expectations. Goldman said:

The better-than-expected cash earnings result was largely due to lower-than-expected BDDs (benefit of A$48 mn), but PPOP was also run-rating c.4% above our implied 2H22E forecasts on better performance on costs (NIMs and revenues largely in line with GSe).

CBA smashes consensus estimates

CBA also outperformed Citi’s estimates, which were already sitting 3% ahead of consensus forecasts. The bank’s cash profit was 6% ahead of the broker’s expectations and 9% ahead of the analyst consensus estimate.

Another positive was CBA’s net interest margin (NIM). While the bank didn’t reveal what its NIM was, Goldman Sachs estimates that it was 1.87%. Although this is down from 1.92% during the first half, it is ahead of Goldman’s second half estimate of 1.86%.

All in all, CBA has been given the tick of approval for its third quarter. However, at this stage, both Citi and Goldman don’t see enough value in the CBA share price to recommend it as a buy.

They continue with their sell ratings. Though, that could change once they have updated their financial models.

The post CBA share price pushes higher on consensus-beating quarterly update appeared first on The Motley Fool Australia.

More reading

• CBA share price on watch following $2.4bn Q3 cash profit
• 5 things to watch on the ASX 200 on Thursday
• Why is the CBA share price outpacing the ASX 200 in 2022?
• What’s the outlook for ASX 200 bank shares amid rising interest rates?
• Is it too late to buy big bank ASX shares?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Owners of APA Group (ASX: APA) shares rejoice! The company’s plan to convert a gas pipeline into a green hydrogen transmission network has received a new breath of life.

APA has partnered with Wesfarmers Ltd (ASX: WES)’s Wesfarmers Chemicals, Energy, and Fertilisers (WesCEF). The pair are exploring the possibility of using APA’s Parmelia Gas Pipeline to supply renewable hydrogen to WesCEF’s production facilities.

At the time of writing, the APA share price is $11.12, 0.09% lower than its previous close. For context, the S&P/ASX 200 Index (ASX: XJO) has slipped 0.79%.

Let’s take a closer look at the latest green hydrogen news from the ASX 200 gas pipeline operator.

APA’s latest step towards green hydrogen

APA announced it had entered a memorandum of understanding with WesCEF last week. The pair will work together to conduct a pre-feasibility study into producing and transporting the zero-carbon energy source via a section of the Parmelia Gas Pipeline.

The ASX 200 giants will jointly fund the study. If it’s successful, green hydrogen could help produce green ammonia and other sustainable chemicals.

APA previously found a 43-kilometre section of the pipeline can house 100% hydrogen without reducing its operating pressure.

“We are pleased to be working with WesCEF in this ground breaking project,” APA CEO and managing director Rob Wheals said.

“This study could be a game-changer for the transportation of green hydrogen by supporting Australia’s first potential conversion of a natural gas transmission pipeline to 100% hydrogen-ready.”

Wheals continued:

Hydrogen won’t be delivered at scale through trucks and trains – we will need large scale interconnected networks which can bring the benefit of resources to our industry hubs, cities and homes …

Existing gas infrastructure is not just essential to powering the nation today, but it will also be essential to the delivery of clean molecules which are likely to be critical additions to our future energy mix.

APA will continue with its second phase of pressurised hydrogen testing over the coming year.

APA share price snapshot

This year so far has been a good one for the APA share price. It has gained 9% since the start of 2022. Meanwhile, the ASX 200 has slipped 7.6%.

The stock has also risen 15% over the past 12 months while the index has traded relatively flat.

The post Own APA shares? Here’s the latest on the company’s ‘ground breaking’ green hydrogen project appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares that keep giving investors pay rises
• Here’s why the APA share price is in the green today
• How big is the APA dividend yield going to be in 2022?
• Own the Vanguard Australian Shares High Yield ETF? Here’s what you’re invested in
• 3 ASX companies that can raise prices whenever they want

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended APA Group and Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The CSL Limited (ASX: CSL) share price is being bled on Thursday amid delays to its big A$17.2 billion Vifor acquisition.

Shares in Australia’s third-largest listed company are coming under pressure as investors absorb the latest information.

At the time of writing, CSL shares are trading 2% lower at $270.63 apiece. For context, the S&P/ASX 200 Index (ASX: XJO) is off the mark by 0.79% this morning.

Slower than first thought

When initially announced to shareholders in December last year, CSL expected the acquisition of Swiss therapeutics giant, Vifor Pharma, to be completed by June. However, as per today’s announcement, this has fallen off track — pressuring the CSL share price.

According to the release, the original completion date will be pushed back due to the regulatory approval process. While no specific details were shared, the biotech behemoth now expects the process will take a few more months.

In the Vifor Pharma acquisition presentation provided in December, CSL outlined ‘completion risk’ as a key risk. This is where the company noted the deal requires foreign direct investment and other regulatory filings and approvals in certain key jurisdictions.

It appears some investors are cautious of the deal falling through. In turn, the CSL share price is weakening on the news today.

However, today CSL mentioned it remains confident in the deal being done.

CSL remains confident of completing its acquisition of Vifor Pharma AG and looks forward to expanding its presence in the rapidly growing nephrology market, as well as leveraging the companies’ combined expertise to continue to deliver innovative solutions to rare and serious illness.

How has the CSL share price fared?

While the CSL share price has held up much better than some of its healthcare peers, the returns so far this year aren’t exactly astounding.

Since the beginning of 2022, CSL shares have tumbled 8.5%. Although, this is far better than the 40% fall exhibited by Fisher & Paykel Healthcare Corp Ltd (ASX: FPH). Likewise, it is a welcomed return compared to the 20% dent to Ansell Limited (ASX: ANN).

The post CSL share price cracks under Vifor Pharma acquisition delay appeared first on The Motley Fool Australia.

More reading

• Why CSL, Dicker Data, Lifestyle Communities, and Money3 shares are rising today
• What is driving the CSL share price higher today?
• 2 ASX shares at ‘appealing’ buy prices right now
• How did the CSL share price escape the carnage today?
• Macquarie picks ASX 200 shares to buy in this volatile environment

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. The Motley Fool Australia has recommended Ansell Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Bitcoin (CRYPTO: BTC) price has fallen below the key psychological level of US$30,00.

At the time of writing Bitcoin is trading for US$29,830, down 4.8% since this time yesterday. Over the past 24 hours, the token traded as low as US$28,170, according to data from CoinMarketCap.

That puts the world’s top crypto by market cap down 25% over the past week and down 40% year-to-date. Crypto investors who bought at the record high Bitcoin price on 10 November will be nursing losses of 57%.

Why are cryptos selling off?

Ordinarily, it’s the Bitcoin price that sets the tone in crypto markets, with most altcoins following in their big siblings’ virtual footsteps.

But that doesn’t appear to be the case with the latest round of selling.

Much of the pressure facing the Bitcoin price looks to be connected to the woes plaguing TerraUSD (CRYPTO: UST). (Details here.)

UST, as you may be aware, is intended to be pegged to the US dollar. But last night the stablecoin was anything by stable, plunging from its intended peg of US$1 to 30 US cents.

That in turn saw Terra (CRYPTO: LUNA) fall by a gut wrenching 97% over the past 24 hours. LUNA is meant to hold the price of UST right at US$1, with investors holding UST able to swap it for US$1 worth of LUNA at any stage.

So, what does this have to do with the Bitcoin price?

Bitcoin price falls amid US$3 billion sale

As if the 3.2% overnight fall in the Nasdaq didn’t throw up enough tailwinds for the Bitcoin price, the world’s original token came under additional pressure from the Luna Foundation Guard. In an effort to revive the UST US dollar peg, the Foundation reported it will sell it US$3 billion of Bitcoin reserves.

According to Jaime Baeza, CEO of crypto hedge fund ANB Investments (quoted by Forbes), “This accelerated the selloff of the broader crypto market as panic spread, and a more black swan systemic-risk event loomed closer.”

Baeza added:

Crypto markets have been under pressure given macro events – tighter monetary policy, surging inflation, Russia’s invasion of Ukraine – and the correlation between Bitcoin and global equities is high. However, the most recent fall in crypto prices is more due to the de-peg of the UST.

With the leading global stablecoin now showing even more volatility than the Bitcoin price, proceed with care.

The post Bitcoin price plunges below US$30,000. What’s going on? appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin. The Motley Fool Australia has positions in and has recommended Bitcoin and Luna. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. 

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