Turkish currency experiences depreciation following reduced interest rates.
13:50 - The Turkish Lira takes a tumble post Central Bank's shocking interest rate decrease, with the dollar gaining approximately one percent to hit 18.13 liras. This places the lira less than two percent above its record low reached in December.
12:20 - A steep drop in U.S. oil inventories pushes oil prices up. Brent crude jumps 1.9 percent to $95.44 per barrel, while WTI CLc1 temporarily rises 1.6 percent to $89.56 per barrel. Surprisingly, EIA data shows U.S. oil inventories plummeted by 7.1 million barrels last week, a stark contrast to analysts' predictions of a 275,000 barrel decrease. The ongoing concerns about a recession have been dampening oil prices, with both Brent and WTI prices shedding around 14 percent since late July.
10:27 - Anticipation of more substantial interest rate hikes in the U.S. sends the U.S. dollar soaring. The dollar index peaks at a 0.4 percent increase, hitting a three-week high of 106.95 points. The euro slips 0.2 percent to $1.0162. According to the minutes released Wednesday evening, the Fed is gearing up for a prolonged battle against inflation. However, the central bank has yet to indicate a preference for another unusually large 0.75 percent rate hike in September or a 0.5 percent increase. Analyst Matt Simpson of City Index anticipates the dollar to stay strong due to the expected additional interest rate hikes.
09:57 - Austrian oilfield supplier Schoeller-Bleckmann wins over investors with its substantial profit increase. The company's shares hit an over eight percent increase. Strong demand from the oil and gas industry has boosted the company's operating profit (EBIT) fivefold in the first half of the year to €44.8 million (€8.9 million).
09:42 - After a nearly 12 percent drop in share price on Wednesday, Uniper continues to plummet. The energy company's shares, which have been volatile due to the gas crisis, fall up to three percent to €6.61 and are the worst performer in the MDax index. A trader remarks the numbers and outlook were underwhelming. Uniper reported a net loss of €12.3 billion in the first half of the year and expects to return to profit only in 2024. Since the start of the year, Uniper's shares have lost over 80 percent of their value.
09:16 - An optimistic outlook from Swiss online pharmacy Zur Rose lifts the shares of its competitor Shop Apotheke. Shop Apotheke's shares peak at a 5.8 percent increase to €80.80 and are the strongest performer in the SDax index. Zur Rose's shares surge over 13 percent at the Swiss exchange. The company aims to achieve operational profitability earlier than expected through cost savings and efficiency measures.
Insights:
- Turkish Lira (TRY): The Central Bank of Türkiye (CBRT) continues to fight inflation through tighter monetary policy, but the lira remains volatile. Import costs are rising due to the lira's weakness against the USD and EUR, particularly affecting businesses dependent on European goods.
- U.S. Dollar (USD): The U.S. dollar remains strong amidst ongoing geopolitical risks and rate differentials, making it a sought-after safe-haven asset. USD/TRY remains elevated due to Turkey's currency instability.
- Oil Prices: General factors influencing oil prices include OPEC+ production policies, global demand outlook, and geopolitical tensions in key producing regions.
- Stock Performance (Uniper/Shop Apotheke): European gas storage levels, renewable energy adoption rates, regulatory changes, EU consumer spending trends, healthcare reforms, and competitive pressures in online pharmacy markets may influence the performance of these companies.
- The surge in oil prices, with Brent crude jumping 1.9 percent to $95.44 per barrel and WTI CLc1 temporarily rising 1.6 percent to $89.56 per barrel, has been influenced by a steep drop in U.S. oil inventories.
- Amidst ongoing concerns about a recession, the EBIT of Schoeller-Bleckmann, an Austrian oilfield supplier, increased fivefold in the first half of the year, causing their shares to hit an over eight percent increase.
- Appreciating the optimistic outlook from Swiss online pharmacy Zur Rose, the shares of its competitor Shop Apotheke peaked at a 5.8 percent increase due to perceived potential cost savings and efficiency measures that are expected to help the company achieve operational profitability earlier than expected.
- Despite the high oil prices and the ongoing concerns about a recession, the Turkish Lira continues to take a tumble, placing it less than two percent above its record low reached in December, and weighing negatively on industries such as finance, energy, and certain sectors dependent on European goods.
