Intense selloff in crude oil pulled the price of a barrel to below the $100pb level, which is the critical 50-DMA support to the latest crude rally. The question is, whether Washington could reverse the positive momentum in oil prices with its promise to release a million barrels of oil from the strategic reserves per day, for the next six months starting from next month. And oh, OPEC and Russia agreed on Thursday to increase the oil output modestly as widely expected, but more importantly, they dumped the International Energy Agency as a data source in a sign of worsening relations with the West. Falling oil prices couldn’t prevent a selloff in equities yesterday, as investors couldn’t stop worrying about the inversion of the 2-10 year curve, and the rumours of recession that come along with it. The S&P500 lost more than 1.50% yesterday, and Nasdaq failed to extend gains above the 200-DMA.
Bitcoin retreats as failure to clear the 200-DMA resistance encourages some profit taking. On the data-front, the latest Caixin PMI manufacturing index fell below the 50 mark, showing that the Chinese manufacturing activity contracted in March as the latest measures to contain the Covid outbreak took a severe toll on the economic activity. Today, the US will reveal how many nonfarm jobs the US economy added last month, and Europe will reveal how bad inflation got in March.
Watch the full episode to find out more!
- 0:00 Intro
- 0:28 Could Washington reverse the bullish oil trend?
- 3:43 US company profits have been strong in 2021, but...
- 5:59 Chinese PMI shows contraction in March
- 6:44 US jobs data: what to expect?
- 7:44 ECB must address the rising inflation problem!
- 8:58 Bitcoin: profit-taking amid failure to clear 200-DMA
Ipek Ozkardeskaya has begun her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked at HSBC Private Bank in Geneva in relation to high and ultra-high net worth clients. In 2012, she started as FX Strategist at Swissquote Bank. She worked as a Senior Market Analyst in London Capital Group in London and in Shanghai. She returned to Swissquote Bank as Senior Analyst in 2020.
