Turkish currency, the lira, experiences a decline following a drop in interest rates.
13:50 - The Turkish Lira plummets following an unexpected interest rate cut from the central bank. The dollar gains roughly one percent to 18.13 liras, putting the lira nearly two percent away from its record low reached in December.
12:20 - Plummeting U.S. oil inventories drive oil prices up. Brent crude spikes by 1.9 percent to $95.44 per barrel, while WTI temporarily rises by 1.6 percent to $89.56 per barrel. Contrary to analysts' expectations, U.S. oil inventories fell by 7.1 million barrels last week, as reported by the EIA. Ongoing concerns about a recession have been squeezing oil prices, with both Brent and WTI losing about 14 percent since late July.
10:27 - Whispers of more substantial U.S. interest rate hikes propel the U.S. dollar. The dollar index soars to a three-week high of 106.95 points, up 0.4 percent, while the euro falls 0.2 percent to $1.0162. The Fed's released minutes indicate the central bank is gearing up for a prolonged battle against inflation. The minutes, however, do not reveal a preference for another 0.75 percentage point hike in September or a smaller 0.50 point increase. Analyst Matt Simpson of City Index anticipates the dollar to remain robust due to projected further rate hikes.
09:57 - Austrian oilfield services provider Schoeller-Bleckmann wins investor approval as profits skyrocket. The company's shares surge more than eight percent early in the day. Strong demand from the oil and gas industry has led to a fivefold increase in Schoeller-Bleckmann's operating profit (EBIT) to €44.8 million in the first half of the year.
09:42 - Uniper's shares continue to slide after Wednesday's nearly 12 percent drop. The energy company's shares, which have been volatile due to the gas crisis, plunge up to three percent to €6.61, making it the worst performer in the MDax index. A trader commented that the company's results 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 profitability only in 2024. Since the beginning of the year, Uniper's shares have lost more than 80 percent of their value.
09:16 - An optimistic outlook from Swiss online pharmacy Zur Rose ignites the shares of competitor Shop Apotheke. Shop Apotheke's shares increase by 5.8 percent to €80.80, making it the strongest performer in the SDax index. Zur Rose's shares spike by more than 13 percent on the Swiss exchange as the company aims to achieve profitability earlier than previously expected through cost savings and efficiency measures.
Insights:
- Turkish Lira and U.S. Dollar: The central bank's policy uncertainty, dollar linkage, and volatile event-driven circumstances contribute to currency turbulence. FX-implied yields react more to domestic volatility shocks post-March 2025[4].
- Oil Prices: Indirect pressures stemming from global trade tensions can indirectly affect energy markets through demand expectations.
- Company-Specific Factors: Potential risks for companies with ties to Turkey include lira depreciation and global trade policy, while energy giants might grapple with volatile gas markets.
- Structural Challenges: Global headwinds such as trade wars and long-term risks like AI disruption and climate costs pose threats to various sectors. Further information would be needed for specific insights about particular firms.
- Despite the optimistic outlook from Swiss online pharmacy Zur Rose, the shares of its competitor Shop Apotheke saw a temporary rise of 5.8 percent, possibly influenced by the anticipated profitability of Zur Rose due to cost savings and efficiency measures.
- While Schoeller-Bleckmann's profits skyrocketed due to strong demand from the oil and gas industry, ongoing concerns about a recession and subsequent falls in oil prices, such as the recent 1.6 percent dip in WTI, have been putting pressure on the oil market.
- The financial sector was impacted when Uniper's shares plunged up to three percent, making it the worst performer in the MDax index, following an underwhelming company outlook and a net loss of €12.3 billion in the first half of the year. This loss in value might potentially have a ripple effect on the broader finance industry.
