Summary:
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Oil.WTI falls over 4% to 2018 low
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Crude oil inventory data ahead
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US indices in the red as US100 leads the losers
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Bitcoin price craters; how low can it fall?
Nearly everywhere you look today there’s heavy declines, with the Oil complex proving no exception. Brent Oil (-4.2%) and Oil.WTI (-4.4%) have both come under sizable selling pressure with the former falling to its lowest level in 8 months whilst the latter has made a new low for the year. These declines have seen recent swing lows taken out to the downside and should the market end the day below them then the break lower would be further confirmed.
It’s a light day on the economic calendar with this evening’s API release arguably the standout (9:40 pm GMT - Weekly API Crude Oil Inventories). After the recent heavy losses the release later today showing the weekly change in inventories will be provided by the American Petroleum Institute. The last week’s reading showed a 8.8 mb decline in crude oil stocks and this number often sets the tone for the more widely viewed DOE release tomorrow.
The recovery seen in US stocks from the October low was fairly impressive, but in recent days this has come under serious threat for both the US500 and US30, while the US100 has actually fallen below last month’s low. The selling in Tech stocks has been largescale of late with the combined losses amongst FAANG (Facebook, Amazon, Apple, Netflix and Google) shares closing in on $1T from their recent highs. October lows of 2603 are on the radar for the US500 with the market falling strongly lower in recent sessions.
Bitcoin's price is down by 30%, Ethereum by 40%, and Bitcoin Cash has fallen two thirds from its recent local high. After a quiet period in the digital coin space, big moves are leading sharply lower. Are cryptocurrencies done? How low can they fall? Our latest market alert looks into these questions and more
