Geoffrey Smith 

Investing.com — Joe Biden will announce the coordinated release of strategic petroleum resources with large importers to help lower fuel prices. Zoom Video stock falls as the company’s earnings do not answer any questions regarding its long-term prospects. Stocks remain under pressure following Monday’s bond sell-off in reaction to Jerome Powell being appointed at the Federal Reserve. New data showing the economy’s strength suggests that the ECB is more hawkish. It also sounds bad news for Turkey. What you should know on financial markets Tuesday, 23 November. 

1. Biden announces oil-related measures 

President Joe Biden is set to announce the release of oil from the U.S.’s Strategic Petroleum Reserve, aiming to stop the economic recovery being derailed by gasoline prices that have hit seven-year highs in recent weeks, according to various newswire reports. 

In a coordinated effort of oil importers around the world to ease pressure on their economies, India, South Korea, and Japan will also make similar announcements.

China is unlikely to publicly join the initiative, S&P Global (NYSE:)’s Platts service reported, due to concerns about keeping good relations with Russia and Saudi Arabia.

Reuters and others cited unnamed OPEC sources playing down reports (which had supported prices on Monday) that the bloc could respond to the U.S.-led move by halting its phased increases in production.

At 6:30 AM ET (1330 GMT), futures had fallen 1.1% to $75.90/barrel, and futures dropped 0.7% to $79.16/barrel by the time of noon ET (1130 GMT).

2. It’s over with the Pandemic Trade (Zoom redux).

Zoom Video shares fell 8% during premarket trading following publication of results and guidance, which were, if any, slightly above market expectations.  Zoom stock, the pandemic champion par excellence is currently trading at its lowest level since June 2020.  

Analysts expressed disappointment at the growth prospects for large customers as well as new services. According to analysts, the market’s move demonstrates disappointment in its ability not grow beyond basic video-conferencing apps which made it a verb last year. This leaves it vulnerable to competitors from Microsoft (NASDAQ:) and Google (NASDAQ:). Microsoft’s Meet and Teams apps provide a more comprehensive suite of related services.

Zoom joins a growing number of stocks who have partially or completely unwound pandemic-era gains. 

3. After the bond-driven selloff, stocks are poised for steady opening; Retail earnings back in focus

U.S. stocks are set to edge lower at the opening later, having been dragged down by the abrupt move in bonds that followed Jerome Powell’s reappointment as Federal Reserve Chair on Monday. The benchmark Treasury 2-year bond yield trades at 0.63%. This is its highest level since April 2020.

At 6:30 am ET (1130 GMT) the markets were flat while they were 0.1% lower and with a higher concentration of interest-rate-sensitive, longer-duration tech stocks were 0.4% lower.

Medtronic (NYSE: Analog Devices (NASDAQ) leads the list of early-reporting companies, alongside Best Buy and Dollar Tree. After the closing, retail continues with news from Gap (NYSE:) and JW Nordstrom.  Hewlett Packard Enterprise (NASDAQ:), and Autodesk are due to also report.

4. Europe looks to have a strong resistance against the rising number of Covid-19 cases

Europe’s economy withstood the recent rise in Covid-19 cases better than expected, according to the latest round of purchasing manager indices released by IHS Markit.

In November, the flash composite Eurozone PMI increased for the first-time in four months. There was an increase in activity in manufacturing as well as services. The U.K. saw services decline slightly which brought down the composite PMI at a healthy 57.7.

Inflation continued to be high in both price components. In an interview earlier, Isabel Schnabel became the first European Central Bank board member to admit that inflation risks are now skewed to the upside, while Dutch central bank chief Klaas Knot said that the fresh wave of lockdowns in Europe shouldn’t stop the ECB winding down its bond purchases.

5. Poor week for Turkey, poor week for Turkey

Turkey lurched towards a full-blown currency crisis, the lira falling as much as 8.8% in response to President Recep Tayyip Erdogan’s latest attempts to defy economic orthodoxy.

Erdogan doubled down on Monday after a cabinet meeting, in protest at the central bank’s refusal to lower interest rates. Inflation is running above 20%.

“”I reject policies that will contract our country, weaken it, condemn our people to unemployment, hunger and poverty,” Reuters quoted Erdogan as saying.

This year’s dollar performance against the Lira has been 66%.