Yazar: Geoffrey Smith ve Peter Nurse
Investing.com – US officials could begin to take a more proactive stance on cryptocurrencies as well as global corporate tax levels. While the stock indices on Wall Street will continue to recover after a weak start to the week, the crude oil market is concerned about the potential for additional oil supplies in Iran. European PMIs point to an economic recovery in the region. Here are five developments that stirred up the markets on Friday, May 21st:
1. Crypto and Treasury
Put aside Elon Musk, she needs to start worrying about Janet Yellen. On Thursday, the Treasury said that all cryptocurrency transactions above $ 10,000 must be subject to a notification requirement, as is the case with cash transactions.
In his statement, he said the move was aimed at “minimizing incentives and opportunities to shift revenue to new information reporting regimes.”
This news led Bitcoin to fall below $ 40,000, a level close to the 200-day moving average, one of the key indicators of momentum. Afterwards, it recovered again and rose 2.2% to $ 40,895.
Fed Chairman Jerome Powell, on the other hand, said he will share an article this summer on the default unit as his digital currency, emphasizing that it will be a complement to the current dollar rather than a replacement for the dollar.
2. Minimum tax
Yellen was busy yesterday. The Treasury Secretary also presented a reform proposal for US corporate taxes, with a 15% global minimum tax proposal on corporate income.
The 15% offered is lower than the 21% that US overseas companies previously offered for their earnings, and some will see it as opening the door again to US companies seeking a foreign residence for reporting purposes. However, it is still above the minimum tax rate used by some countries such as Ireland and Luxembourg and thus may face European objection.
3. The recovery in the stock markets seems to continue, interest in Applied Materials (NASDAQ 🙂
The US market will open relatively high on Friday, continuing the strong trend seen in the previous session. The three-day loss chain of the market is also breaking after investors recover from the shock caused by the Fed minutes, which touched on the idea of reduction in bond purchases.
The new lows released on Thursday supported the sentiment, but the surge also supported the idea that the central bank will continue to support it for a while.
It increased by 90 points and gained 0.3%.
Among the stocks that may be in the spotlight are Applied Materials. Its quarterly report, which it shared on Thursday, showed that the strong demand for chip manufacturing equipment continues. Foot Locker (NYSE 🙂 and Deere (NYSE 🙂 are also among the names to report.
4. Europe’s PMI data point to recovery in the service sector
According to PMI preliminary readings, the recovery in the European economy accelerated in May with the resurgence of the service sector.
The eurozone reading rose to 56.9 points, reaching a three-year high, beating analysts’ expectations. his reading increased from 50.5 points to 55.1.
In the UK, it rose from 60.7 points to 62.0. Both the manufacturing and service sectors are above 60 points.
The euro was hovering just above $ 1.22, while the pound consolidated above $ 1.42.
5.The possibility of Iran’s additional oil supply plagues the crude oil market
Crude oil prices rose after three days of selling on Friday, but the market is heading for a weekly decline as the market awaits the possibility of additional oil supplies from Iran.
While it was $ 62.66 with an increase of 1.2%, it increased by 0.9% to $ 65.72. Both contracts are on a 5% low and their biggest weekly loss since March.
Iran and the world powers have been in talks since April to revive the 2015 nuclear deal that limits the country’s nuclear ambitions in the Persian Gulf, and this week’s developments from both Iran and Europe are positive.
If the US boarded this ship, it would likely have an additional 1 million barrels of oil supply from Iran per day for the remainder of the year.
Another development that raised supply concerns is that the number of active oil rigs counted by has steadily increased in recent weeks. While the company’s latest update will be published at its usual time, its report will also be shared.