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On March 12, Deepali Bhargava, Head of Research for Asia Pacific at ING, wrote in a report that the impact of rising oil prices on Asia will be uneven. Thailand, the Philippines, and South Korea are likely to be hit hardest, due to their weak buffers, rapid price transmission, and heavy reliance on imports, respectively. She stated, "India and China benefit from built-in shock absorbers because more than half of their energy supply still comes from coal." She pointed out that regions like Singapore appear best positioned to withstand rising oil prices should disruptions escalate. This is because they have relatively strong fiscal positions, healthier current account dynamics, and are better able to provide targeted support.Traders said the Reserve Bank of India is likely to sell dollars to support the rupee, given the surge in oil prices.On March 12th, it was observed on Alibabas judicial auction platform that several equity stakes in banks such as Jiujiang Bank and Guangdong Huaxing Bank, valued at over 100 million yuan, were recently listed again, ultimately entering the disposal process after multiple failed auctions. According to JD.coms asset trading platform, several more bank equity auctions exceeding 100 million yuan have recently been added, including approximately 223 million shares of Guangfa Bank held by Jiangsu Sugang Group, which will be auctioned in early April with a starting price of 784 million yuan, making it the highest single bank equity auction listed this year. Industry analysts point out that "in the short term, the market for auctioning equity in small and medium-sized banks will continue to be sluggish, and may exhibit characteristics of deepening discounts and reduced transaction volume." Bai Wenxi, vice chairman of the China Enterprise Capital Alliance, believes that from the perspective of industry development patterns, the "winter" in the auction of equity in small and medium-sized banks is a concentrated release of risks accumulated from the past extensive development model. The key to breaking the deadlock lies not in waiting for the market to recover, but in restoring investment value to the equity of small and medium-sized banks through substantial risk clearing, governance restructuring, and mechanism innovation.March 12 - According to CNBC, the International Energy Agencys (IEA) plan to release the largest oil reserves in history sends a clear signal that the energy market believes the war with Iran may last far longer than expected. Andy Lipow, president of Lipow Oil Associates, stated that some in the market interpret the IEAs action as indicating the conflict could last for weeks. Saul Kavonic, energy analyst at MST Marquee, also believes the scale of the release highlights the severity of the oil shortage risk, suggesting the IEA believes the war is unlikely to end quickly. Bob McNally, president of Rapidan Energy Group, said traders realize the release plan can only compensate for a small portion of the shortage caused by the Strait of Hormuz blockade, and oil prices are likely to continue rising unless a ceasefire is achieved or Irans military offensive capabilities decline, allowing tanker shipments to resume.On March 12th, WeChat officially announced a new feature: users can now click "Ignore" on unwanted WeChat voice/video calls. The pop-up will disappear after clicking, and the recipient will not receive a "rejected" message. WeChat video calls also support screen locking, a feature that is being rolled out gradually. Furthermore, WeChat voice-to-text now supports simultaneous interpretation, and currently supports 18 languages, including Chinese.

Silver Prices Face Downward Pressure Due to Growing Concerns About Inflation and a New Sanction on Russia

Drake Hampton

Apr 07, 2022 10:30

Tips

  • Silver prices remained stable due to fears about rising inflation.

  • The dollar strengthens upon the publication of the Federal Reserve's minutes.

  • Benchmark rates have continued to rise at a faster rate than the rate of tightening.

  • Oil prices are falling as the US and EIA pledge to release critical stockpiles.

 

Silver prices fell marginally as concerns about inflation increased as a result of the Ukraine crisis. Benchmark yields increased in response to the Fed's hawkish tone and more active policy. The ten-year Treasury yield increased to 2.61 percent, approaching March 2019 highs. Due to growing risk-averse sentiment, new sanctions on Russia resulted in a surge in gold and silver prices. Oil prices declined 2.2% to $99.73 per barrel as the US committed to deploying 60 million barrels from strategic reserves while EIA members committed to release 120 million barrels. 180 million barrels in total would be released.

 

The March FOMC meeting minutes, released on Wednesday, showed that the Fed intends to begin shrinking the balance sheet by $95 billion per month in May. Treasury securities would be limited to a maximum of $60 billion and mortgage-backed securities to a maximum of $35 billion, which would be phased in over three months. Additionally, the discussion indicated that future meetings would likely include a 50-basis-point hike. Members favored more aggressive maneuvers. Additionally, the Fed raised its inflation forecast and decreased its economic growth forecast.

Technical Evaluation

Silver prices fell to $24.4 per ounce today as increasing inflation offsets negative pressure from aggressive rate hikes and a strengthening dollar. New sanctions against Russia may act as a tailwind due to silver's safe-haven characteristics. Silver is under pressure to fall to the $24.00 level as yields rise and the dollar strengthens. This circumstance may result in a breach below support for XAG/USD. Near the horizontal trendline near 23.6, there is support. Resistance is located near the 50-day moving average, which is located near 24.5. Short-term momentum shifted negative as the fast stochastic crossed below the zero line, signaling a sell signal.

 

The medium-term momentum is negative, as indicated by the histogram's negative correlation with the MACD (moving average convergence divergence). The MACD histogram's trajectory is negative but decelerating, indicating an upward trend in price movement.

 

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