Oil drops after DOE draw of -0.3M; US production increases
Stocks attempt to recover from recent declines
Stock of the week: Global payments
Turkish Lira gains after Trump-Erdogan call
Crypto newsletter: Bitcoin enjoys weekend volatility
There’s been a fairly sharp drop in the price of Oil this afternoon after the latest DOE inventory number showed only a small release. Even though the print of -0.3M was the first decline in 3 weeks, it is far smaller than the -5.3M print seen in last night’s API number and against that backdrop is not supportive for the crude markets. Moreover, US production rose once more to 12.3M and this has seen oil to its lowest level of the week and lower by 2.7% on the day at the time of writing.
There’s been a bit of a recovery in US benchmarks so far today after Wednesday saw declines in the region of around 1% across the 3 large-cap US indices with the S&P500 falling to its lowest level since the middle of March. However the S&P500 remains below the 2800 mark and while this remains the case the market is still under pressure. On the data front the Preliminary US Q1 GDP Q/Q came in at an annualised rate of 3.1%, slightly above the 3.0% expected but at the same time marking a drop from the 3.2% seen on the first reading.
The Turkish lira is leading the gains in the FX market being up 1.8% against the US dollar. Its strength came after a phone call between Donald Trump and Recep Erdogan taking place on Wednesday. Both discussed the Trump’s decision to reduce steel tariffs on Turkey to 25% from 50%. On top of that, a discussion regarding a possible increase of trade between the two countries also took place.
Rally on the Bitcoin market continues. When Europe was focused on the European Parliament election, Bitcoin broke above another key level at $8200. This is another sign that cryptocurrencies tend to attract interest at times of market uncertainty. View our Cryptocurrency newsletter here.