EUR/USD 1.16914
0.116%
Gold 4533.77
0.324%
Oil 85.928
0.006%
USD/JPY 159.015
-0.023%
GBP/USD 1.36422
0.091%
GBP/JPY 216.936
0.078%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On August 21, analysts at Daiwa Capital Markets noted in a report that European Central Bank policymakers may have been somewhat relieved so far by the relatively limited indirect impact of the energy shock on other commodity prices. "Of course, the pressure is mainly concentrated in the early stages of the production chain and in industries most vulnerable to oil and gas prices," they stated. However, with wholesale oil and gas prices rising again in recent weeks, the risk of further exacerbation of the indirect transmission effect and a second round of price impacts lasting longer is also increasing.On August 21st, economists at Sumitomo Mitsui Nikko Securities stated that the Bank of Japan (BOJ) is likely to raise its policy rate from the current 1% to 1.25% at its next meeting in September. They noted that the BOJ is expected to raise rates again in January and June 2027, eventually reaching a policy rate of 1.75%. They added, "After next summer, import-driven inflationary pressures are expected to ease, making it unlikely that the BOJ will raise the policy rate to 2%—a level higher than the markets average estimate of the neutral rate." The overnight index swap market currently indicates an 84% probability of a BOJ rate hike in September, with two more hikes expected by early 2027.Russian Deputy Foreign Minister Ryabkov: Whats important now is how Washington can influence decision-making in Kyiv and Europe.Indias preliminary composite PMI for August was 54.6, below the expected 54.4 and the previous reading of 54.3.Indias preliminary services PMI for August was 54.5, below the expected 53.8 and the previous reading of 53.3.

WTI Remains on the Defensive Near $76, as Central Banks Rekindle Recession Fears and PMIs Are Monitored

Daniel Rogers

Dec 16, 2022 11:48

 225.png

 

Following a reversal from the weekly high to welcome the bears, WTI crude oil licks its wounds near $76.20 on Friday morning. Fearing a recession, the traders of black gold are awaiting the first readings of important economic activity figures from leading economies.

 

In spite of this, the energy benchmark fell the most in over a week as global central banks announced rate increases the day before. The oil market's pessimism was exacerbated by the policymakers' willingness to maintain high interest rates for an extended period of time, as well as inflationary concerns. Consequently, economic slowdown worries bolstered the US Dollar's safe-haven demand and weighed on the Oil.

 

Moreover, owing to Beijing's prominence as one of the world's largest consumers of commodities, weak China statistics provided additional support to sellers of black gold. China's Retail Sales dropped to -5.9% in November, compared to -3.6% predicted and -0.5% previously, while Industrial Production came in at 2.2%, compared to 3.3% market predictions and 5.0% earlier readings.

 

In addition, news from Canada weighed on oil prices, as reported by Reuters: "Canada's TC Energy Corporation said it was resuming operations in a stretch of its Keystone pipeline, a week after a spill of more than 14,000 barrels of oil in Kansas caused a shutdown."

 

As a result, oil bears are well-positioned to reclaim control, but await the early readings of the PMIs for the UK, Europe, and the US for the month of December for unambiguous guidance.


Suggestion