- Oil drops after smaller DOE drawdown and Chinese tariffs
- Stock remain near recent highs; Tesla in focus
- Bitcoin slumps below $6500
- GBP sinks on Brexit concerns
The most recent oil inventory release has shown a smaller than expected drop for the past week, with the market falling lower in the initial reaction. A print of -1.4M was well below the 3.8M seen last time out, but compared to the consensus forecast of -2.2M it is relatively higher. Around the same time China announced that the $16B of US goods targeted by additional tariffs will include gasoline, diesel and some other petroleum products. This saw the sell-off gather pace and Oil is down by aorund 4% at the time of writing.
US indices remain fairly well supported with the US500 trading around 2860 and the US100 just moving to its highest level of the week in the last hour. There’s not been much by the way of major market moving news today, and as such the benchmarks have seen fairly subdued price action. One stock in particular that is grabbing the limelight in the past 24 hours is Tesla, with the electronic car manufacturer surging higher on a dual boost yesterday.
Wednesday draws quite a pessimistic picture of the cryptocurrency market with Bitcoin’s decline below the $6500 handle in the spotlight. Over the past 24 hours major virtual currencies pushed lower sending the capitalization of the whole market to around $230 billion. At the same time, the Bitcoin market capitalization sits a notch above $110 billion. Today’s major topics concern the plans of one of the Swiss banks and news from Ukraine.
The pound has fallen further against the US dollar today, with the pair sliding below the 1.29 handle as Brexit concerns continue to pile-up for sterling. The latest concerns surround UK PM Theresa May and her ability to strike a deal with the EU regarding their post-Brexit relationship, with a no-deal seen as offering further negative pressure for the pound. The slide in the pound has supported blue-chips in London however with the UK100 benchmark enjoying a solid day of gains and looking like it could end at its highest level since late May.
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