Turkish Lira Bounces

Global stocks rallied overnight as some of the emerging market currency fears subsided. Turkey’s currency, the Turkish lira, bounced against the US dollar after days of precipitous declines although Turkey is certainly not out of danger. Turkish president Erdogan is now threatening to boycott iPhones as he views the US as the cause of all his troubles. The US has imposed tariffs on steel and aluminium imports from Turkey although this is certainly not the root cause of Turkey’s troubles. The Dow Jones index climbed 0.45% overnight while the S&P 500 climbed 0.64%.

The TSLA share price has now given back almost all of the gains made following Elon Musk’s tweet proclaiming that he had funding already in place to take the company private. This tweet has subsequently proven to be, at best, inaccurate as it is now clear that no such funding exists. TSLA shares fell 2.5% overnight.

Gold prices had started to rally overnight but fell to new lows for this move shortly after the open of US stock markets. Gold is currently trading at US$1,194 per ounce. Oil prices, on the other hand, had been rallying but fell after the American Petroleum Institute (API) inventory data showed an unexpected crude build last week. The official DOE data will be released tomorrow which can differ substantially from the API data.

Tonight, US retail sales data will be released which is expected to show modest growth in core retail sales of 0.3%. This would be slightly weaker than the prior month’s 0.4% growth. 

Data Releases:

-    US Retail Sales 10:30pm AEST

This article was written by William O'Loughlin - Investment Analyst, Rivkin Securities Pty Ltd. Enquiries can be made via william.oloughlin@rivkin.com.au or by phoning +612 8302 3633.

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This article contains information about foreign exchange contracts, which are considered complex financial products. Please click here to read ASIC's foreign exchange trading article before considering an investment in foreign exchange contracts. 

This article contains information about CFDs, which are considered complex financial products. Please click here to read ASIC's "Thinking of trading contracts for difference?" document before considering an investment in CFDs.
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