Energy Led Market

Today’s Highlights


Tillerson in Turkey


Four Fed & Balance Sheet


GDP in Focus Today


Market Overview


Despite US Stocks holding their ground yesterday, Asian stocks are facing a down day and European indices are certainly struggling at the open this morning.

For the purposes of these updates, we’ll continue to refer to the  UK100  as a European index.

Oil managed a nice gain yesterday which did add some fuel for the bulls, especially in the energy sector. This chart shows how the energetic gains are offsetting minor losses from everywhere else.

Turkish Delight

Today US Secretary of State Rex Tillerson will visit the quasi-democratic nation of Turkey. Rex would like to discuss the war in Syria and how the United States would like to use Kurdish forces to attack Raqqah, the declared capital of ISIS.

To put it lightly the Turks and Kurds are not playing nicely at the moment so the former oil baron has his work cut out for him.

What will likely not be discussed is the Turkish Referendum set to be held two weeks from now. President Erdogan has been doing his best to hassle and suppress his opposition, something that would normally drive a Yanki crazy but Tillerson’s Trump driven agenda at the moment puts the eradication of the Islamic State above promoting global democracy.

We’ll be watching the Turkish Lira very closely up to and following the referendum on April 16th.

What Else?

Fed member Eric Rosengren spread his hawk wings yesterday and called for another four rate hikes this year. Four Fed speeches are due today, as well as the Fed’s Balance Sheet and Money Supply.

The markets are currently pricing in another one or two hikes. Fed Vice Chair Stanely Fischer was a bit more level-headed than Eric calling for no more than two hikes.

The big data point out today is the Final GDP for Q4 of 2016 that will be released at 13:30 PM GMT. Analysts are hoping for a 2% quarterly growth rate from the USA.

Have an awesome day ahead!!

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