Fintech Focus For June 14, 2021

Quote To Start The Day: "[C]ost-push inflation will be the primary driver of inflation through the remainder of this year and into next. The Fed is betting on this, but if it is wrong, it will be because a wage-price spiral developed, although that is unlikely to occur until the economy has hit or exceeded full employment, something we don’t expect until the end of next year.”

Source: Moody's

One Big Thing In Fintech: Open banking is fueling a new age of financial services.

What began as a niche movement has grown into a global phenomenon, with APIs being leveraged to build products and services that give users greater control over their financial lives. Open banking tech has especially gained momentum in the wake of the global Covid-19 pandemic, which drove up demand for digital financial services.

Source: CB Insights

Other Key Fintech Developments:

• Analysis: New threat to neobanks.
• State Street’s talking crypto ETFs.
• Insurtech remains rather attractive.
• Clair closes $15M Series A round.
• BoE, BIS intro an innovation hub.
• InstaDApp secures $10M funding.
• Mastercard completed Ekata buy.
• ETH 2 deposits are hitting records.
• Twitter may add Lightning Network.
• Analyzing the top fintechs of 2020.
• Embroker raises $100M insurtech.
• SocGen, Kyriba develop new tech.
• New mission for SoFi’s BaaS arm.
• BBVA fostering fintech ecosystem.

Watch Out For This: The prevailing narrative with these large meme-stock movements is that entities like the wallstreetbets message board are responsible for amazing returns. Its a wonderful story of the retail “David” vs the Wall Street “Goliath”, and how these new forums are changing the long held dynamics of how markets work.

However, there are many reasons to question this prevailing narrative that its primarily a retail-driven phenomenon.

Source: SpotGamma

Interesting Reads:

• Young creators burn out and break.
• Fed looking to taper later this year.
• Aviation revolution not supersonic.
• Fed is (kind of) buying crypto bonds.
• AMC insiders sold $9.5M on surge.
• Leaders honed in on the next crisis.

Market Moving Headline: Last week, the movement was both volatile and mechanical, halting short of key visual references.

This technically-driven trade denotes a lack of interest by institutional participants, at record highs; supply chain uncertainties and rising inflation, fiscal and monetary tightening, COVID-19, political risks, employment, and the like, are some of the concerns larger participants have been looking to price in.

Key Takeaways: Index futures exit balance, attempt to discover higher prices.

- One big thing: Inflation temporary.

- Ahead: FOMC 2-day rate meeting.

- Indices were divergent but higher.

In the coming sessions, participants will want to focus their attention on where the S&P 500 trades in relation to the $4,227.00 high volume area (HVNode), a pivot on the composite profile.

In the best case, the S&P 500 trades sideways or higher; activity above the $4,227.00 high volume area (HVNode) puts in play the $4,249.00 minimal excess high. Initiative trade beyond that figure could reach as high as the $4,270.00 161.80% Fibonacci price extension and $4,294.75 127.20% extension.

Source: Physik Invest