Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Bitcoin Regulation, Corporate Tax, PMIs and Iran Oil - What's Moving Markets

EconomyMay 21, 2021 05:46AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Geoffrey Smith and Peter Nurse  

Investing.com -- U.S. officialdom could well start taking a more proactive stance on cryptocurrencies, on top of global corporate tax levels. Stock indices on Wall Street are set to continue the recent rebound after the weak start to the week, while the crude market frets over the potential of additional Iranian supply. European PMIs point to an economic recovery in the region. Here's what's moving markets on Friday, May 21st. 

1. Crypto treasury

Forget Elon Musk, Bitcoin needs to start worrying about Janet Yellen. The Treasury said on Thursday that all crypto transactions over $10,000 should be subject to a reporting requirement, bringing it into line with cash transactions.

It said in a statement that the move is intended “to minimize the incentives and opportunity to shift income out of the new information reporting regime.”

The news pushed Bitcoin back down below $40,000, a level that is also close to its 200-day moving average, a key indicator of momentum, although it has since recovered. As of 6 AM ET (1000 GMT), the world’s biggest digital currency was trading at $40,895. up 2.2% on the day.

Separately, Federal Reserve Chairman Jerome Powell said the Fed will publish a paper this summer on its own putative digital currency, which he stressed would be a complement to the existing dollar, not a replacement for it.

2. Minimum Tax

Yellen was a busy woman yesterday. The Treasury Secretary also followed up her proposals for the reform of U.S. corporate taxes by proposing a 15% global minimum tax on corporate income.

The proposed 15% rate is lower than the 21% proposed earlier for the overseas earnings of U.S. companies by Yellen, and will be seen by some as reopening the door to U.S. companies seeking a foreign domicile for reporting purposes. However, it is still above the minimum rates of tax used by countries such as Ireland and Luxembourg, and may face European opposition, accordingly. 

3. Stocks seen continuing rebound; Applied Materials (NASDAQ:AMAT) in focus

U.S. stocks are set to open marginally higher later Friday, continuing the previous session’s rebound from a three-day losing streak as investors recovered from the surprise of the minutes from the last Federal Reserve meeting touching on the idea of bond tapering.

A new pandemic-low in jobless claims helped sentiment on Thursday, but the rise in continuing claims also played into the idea that the central bank will remain in a giving mood for some time to come.

By 6 AM ET, Dow Jones futures were up 90 points, or 0.3%, while S&P 500 futures were up 0.3% and Nasdaq 100 futures were up 0.3%.

Stocks likely to be in focus later include Applied Materials, whose quarterly report after the bell on Thursday reflected ongoing strong demand for chipmaking equipment. Foot Locker (NYSE:FL) and Deere (NYSE:DE) lead a dwindling bunch of companies reporting. 

4. Europe PMIs point to services recovery

Europe’s economic recovery accelerated in May with services coming back to life as manufacturing cooled, according to preliminary readings of purchasing manager indices across the continent.

The Eurozone composite PMI compiled by IHSMarkit rose to 56.9, its highest in over three years and above analysts’ expectations, as the services PMI picked up to 55.1 from 50.5 in April.

In the U.K., meanwhile, the composite PMI rose to 62.0 from 60.7, in line with expectations, with both the manufacturing and services indices holding well above 60.

The euro was flat at just over $1.22, while the pound consolidated close to its high for the week at just over $1.42.

5. Potential Iranian supply hangs over crude market

Crude oil prices traded higher Friday, recovering from three days of selling, but are still set to post a weekly fall as the market braces for additional supply from Iran.

By 6 AM ET, U.S. crude was up 1.2% at $62.66 a barrel, while Brent was up 0.9% at $65.72. Both contracts are still down over 5% and on track to post their biggest weekly loss since March.

Iran and world powers have been in talks since April on reviving the 2015 nuclear deal which limited the Persian Gulf country’s nuclear ambitions, and there have been positive noises surrounding progress from both Iranian and European circles this week.

If the U.S. was to get aboard, this would potentially allow around 1 million barrels per day of additional Iranian barrels to hit the market later in the year.

Adding to worries about supply, the number of active oil rigs counted by Baker Hughes across North America has risen steadily in recent weeks. The company’s latest weekly update is due at 1 PM ET, as usual, while the CFTC will release its weekly commitments of traders report at 3:30 PM ET.

Bitcoin Regulation, Corporate Tax, PMIs and Iran Oil - What's Moving Markets
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (8)
Steve Lora
Steve Lora May 21, 2021 12:21PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Biden is getting takes from Bitcoin investors. This is good. They can pay for new bridge in Harlem. If anyone knows someone not reporting Bitcoin gains on taxes, report them to Bidens IRS
James Pattison
James Pattison May 21, 2021 9:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Why does janet yellen think she gets to dictate ofher countries tax rates? Its imperialistic... they are plenty smart to make their oen laws and taxes...
Natalie Evans
Natalie Evans May 21, 2021 9:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
stop attacking....this is just because she is a woman. if it was male I guess your tone might have been softer.
Ominous Owl
Ominous Owl May 21, 2021 9:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Socialism is an extremely infectious disease.
Steffen vdm
Steffen vdm May 21, 2021 9:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
stop attacking....this is just because James is a man. if he was female I guess your tone might have been softer.
Oshinosh Oshinosh
Oshinosh Oshinosh May 21, 2021 9:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Plenty of Staunch capitalist traditional conservative US governments had way higher tax rate then whay is now or proposed.
Gene Kret
Gene Kret May 21, 2021 9:24AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Who cares is Iran puts oil on the market??? The demand is about to explode as Summer approches. Buy UCO now before it takes off!! Oil will be $85-$95 per barrel by mid July. Airlines are hiring, cruise ships are booked, Summer vacations, personal watercraft etc.... oil will be in extra hi demand buy UCO now!!!
Matt Kay
Matt Kay May 21, 2021 9:24AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
On opposite day maybe.
JOSE ONTIVEROS
JOSE ONTIVEROS May 21, 2021 8:35AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
US officials fear people loosing faith in the USD... Sleepy Biden does nothing to stimulate market. Yet they want to handicap cryptocurrency. Why wasnt this an issue before. Now under Biden shifting of funds to Cryptocurrency. No faith on that guy...
Tuz Tuz
Tuz Tuz May 21, 2021 8:35AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Thanks Nats 👍
Zsombor Komán Birtalan
Zsombor Komán Birtalan May 21, 2021 7:08AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
worldwide minimum wages too?
Jim Herndon
Jim Herndon May 21, 2021 6:31AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Business journalists are like sports journalists, they never played the game and they hate those who do and did .
ocopr ycobb
ocopr ycobb May 21, 2021 6:16AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
$YUMMY crypto
justin namon
justin namon May 21, 2021 6:14AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Markets held hostage by BTC
Clinton Powell
Clinton Powell May 21, 2021 6:14AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Huh?
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email