Skip to content


European indices hit with more political turbulence; Oil slides on Saudi comments


  • European indices set to end bad week near the lows
  • Spain follows Italy in providing a source of political uncertainty
  • Oil also slides with Saudi minister warning of growing supply
  • USD set for another week of gains; mixed durable goods data

It’s been a challenging week for European stocks with some fairly sizable declines seen. The ongoing political concerns surrounding Italy remain a source of concern and the DE30 has seen a bright start to today’s session fade with a large red candle currently displayed on a weekly chart. 

Further political worries have surfaced today in Spain, with the SPA35 dropping sharply. The market has swooned on calls from the 2 opposition parties for a snap election, and even though PM Rajoy has said that he will resist these calls, the market has had a large down day. The Euro has also seen some selling on the news with the EURUSD hitting a new low below the 1.17 handle. 

There’s been a swift drop lower in the oil price today with a wave of selling hit the market. Today’s comments from Khalid Al-Falih, the Saudi Oil minister, have got more than a hint of suggestion that the current restriction of supply may be phased out in the not too distant future. The price of Oil has moved down by over 2% and the market trades below the $77 handle on the European close. 

The latest consumer spending data from the US has sent some fairly mixed signals on the sector, with the a pretty large drop in the headline negated by a better core reading. The durable goods orders m/m for April fell to -1.7% from 2.7% previously (revised higher from 2.6%), further than the expected -1.3%. However, the core reading often holds more weight on these data points and a pleasing 0.9% increase, compared to +0.5% forecast has offset the negativity from the headline print. 



This article is provided for general information purposes only. Any opinions, analyses, prices or other content is provided for educational purposes and does not constitute investment advice or a recommendation. Any research has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Any information provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it.

Past performance is not necessarily indicative of future results, and any person acting on this information does so entirely at their own risk, we do not accept liability for any loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.