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What happens after Twitter goes private and why did the price of oil drop 10%?

How does Twitter’s share price respond after being privatized? Why did the price of oil price drop 10% in a week? What to expect from Bitcoin as Australian first Crypto ETF?

The global equity market has just gone through a turbulent week with the ASX losing 1.79% last week, the most significant weekly decline since mid-January. The US market plunged sharply on Friday, with all three major indices ending with more than a 2% weekly loss.

Rolling into the final week of the month, a worrying cocktail of inflation, war, and a turbulent economy outlook is undoubtedly a concern for investors along with the upgrade of the Ukrainian conflict with American military assistance, and the idea of locking down China’s capital city.

In the domestic market, Wednesday’s first-quarter consumer index is tipped to force the RBA into a pre-election rate hike by 25 to 50 bps if the print comes out to be ’too hot’.

Below are the three key markets that we believe will catch the investors’ eye:

Twitter

On Monday, Elon Musk announced that he has reached a $44 billion deal to buy Twitter, one of the most popular social networking platforms with 206 million daily active users. Investors will receive $54.20 for each Twitter share they own, a 38% premium to the stock’s close price on April 1st. Musk revealed several changes he wants to make, including ridding Twitter of spam bots and ‘authenticating all humans.’

The Twitter share price has soared over 60% since mid-March. Earlier this month, the join-brand with Tesla founder Elon Musk has seen the social media platform’s stock skyrocket by over 28% overnight.

Although the share price has jumped 6% after the announcement, the bid offer of $54.20 will limit the sky for the stock price.

Oil

Global oil prices have fallen to a two-week low. The price of key benchmark Brent crude dipped over 10% in a week and broke through the $100 psychological threshold briefly on Monday. The fears of the further demand shrinking following the wide-spreading COVID-19 lockdown in China has sparked bearish sentiments in broad commodity markets.

From a technical viewpoint, a connecting of all the highs for the past four weeks will print a descending trend line for the price. A key support at $98.53, a level that had seen the price rebound during the mid-March and early-April dip, should help slow down the slide for the near-term. However, a break-through this level will be viewed as an overturn of momentum, as the price will fall beneath both short-term and long-term moving averages.

Bitcoin

As a monumental milestone for the Australian crypto community, two ETF crypto products, which were intended to offer investors’ direct exposure to Bitcoin and Ethereum, will be introduced to the market this week.

Despite the wild volatility which has sent Bitcoin prices down 14.7% year-to-date, the demand for cryptocurrency products is expected to be strong. Last October, the launch of the US’s first Bitcoin-linked ETF has helped to send the leading digital currency’s price to its record high.

Since early 2022, the price of Bitcoin has been riding on a rollercoaster. The price at the start of this week, $39581, is more than 20% lower than its recent high, recorded only four weeks ago. The jump on Tuesday’s session shows that Bitcoin is heading close to the 100-day and 20-day SMA at $41,161. Clearing these hurdles could see the big crypto push toward the upper boundary of the moving tunnel, while a breakout from here could declare the return of the bull.

Take your position on over 13,000 local and international shares via CFDs or share trading – and trade it all seamlessly from the one account. Learn more about share CFDs or shares trading with us, or open an account to get started today.

This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

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