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August 2nd - Xiaomi phones have officially increased in price. On August 2nd, the Xiaomi Mall showed that the price of the Xiaomi 17 series has increased by 300-500 yuan per unit. REDMI product lines followed suit, with the performance-focused Turbo 5 and various versions of the K90 series generally increasing in price by 300 yuan.On August 2nd, the Peoples Bank of China (PBOC) held its 2026 second-half work conference. The conference noted that high-level financial opening-up is progressing steadily. Policies regarding corporate overseas lending, bank overseas loans, and cross-border RMB interbank financing will be optimized. A new repurchase facility by overseas central banks will be established. The issuance of Panda bonds in China by high-quality international entities will be facilitated, with issuance exceeding RMB 160 billion in the first half of the year. Positive progress has been made in the construction of the RMB cross-border payment system. Support will be provided for the development of Shanghai and Hong Kong as international financial centers. Support will also be given to the construction of the Xiongan New Area and the Western Land-Sea New Corridor. Foreign exchange facilitation reforms will be deepened, and the scope of pilot programs for high-level opening-up of cross-border trade will be expanded. Services for corporate exchange rate risk management will be improved.On August 2nd, the Peoples Bank of China held its 2026 second-half work conference. The conference noted that financial risks in key areas have continued to be mitigated. Significant progress has been made in resolving the debt risks of financial support platforms. The financial market is operating well. The conference emphasized monitoring and assessing the bond market from a macro-prudential perspective, and strengthening bond market supervision and enforcement. It also stressed leveraging the two monetary policy tools supporting the capital market to stabilize and enhance [the markets stability and strength].On August 2nd, the Peoples Bank of China (PBOC) held its 2026 second-half work conference. The conference emphasized continuing to implement a moderately loose monetary policy. It will comprehensively utilize various monetary policy tools, including reverse repos, medium-term lending facilities, and the buying and selling of treasury bonds, to provide short-, medium-, and long-term liquidity, maintain ample liquidity, and guide financial institutions to strongly support the effective financing needs of the real economy. The conference also stressed improving the short-term interest rate control mechanism, increasing the variety of overnight reverse repo operations, and narrowing the temporary overnight repo/reverse repo operation interest rate range. It further emphasized strengthening the implementation and supervision of interest rate policies, urging financial institutions to clearly disclose the comprehensive financing costs of loans, and maintaining a low level of comprehensive social financing costs. The conference also stressed the importance of effective market communication and expectation guidance. At the end of June, total social financing increased by 7.4% year-on-year, and broad money supply increased by 8.0% year-on-year. The conference reiterated the principle that the market plays a decisive role in exchange rate formation, and that the RMB exchange rate will fluctuate in both directions.Japanese Minister of Economy, Trade and Industry Ryomasa Akazawa: Even if we conservatively estimate that we can only maintain the procurement level of 75% of the same period in previous years, the use of national reserves will be sufficient to ensure oil supply until the end of March 2028.

WTI struggles to prolong its two-day uptrend below $78, as negative sentiment undermines expectations for China-led oil demand

Daniel Rogers

Mar 02, 2023 15:46

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Following a two-day uptrend that reached the greatest levels in a fortnight, the price of WTI crude oil fluctuates between $77.80 and $90 early Thursday.

 

The recent struggles of the black gold may be related to the contradictory signals encircling China and the Oil equities. However, negative sentiment and the resurgence of the US Dollar appear to be the quote's greatest obstacles to the upside.

 

In addition, higher-than-anticipated US inventories weigh on the energy benchmark. The weekly data from the US Energy Information Administration (EIA) indicates a 1.165M increase in Oil inventories, compared to the expected 0.45M increase and the previous level of 7.648M.

 

The willingness of US President Joseph Biden to continue pumping the markets with the Strategic Petroleum Reserve (SPR) and the absence of offers for Russian Oil also exert downward pressure on the price of WTI crude oil.

 

The latest New York Times (NYT) headlines suggest a potential rift between the United States and China at the important event. According to the news, "China is urging the start of peace talks, and some Group of 20 nations may support that notion when they meet in India, but U.S. officials contend Russia would not negotiate in good faith."

 

It should be noted, however, that the recent uptick in China activity data and optimistic remarks from the dragon nation's policymakers keep black gold purchasers optimistic. China's Minister of Human Resources recently stated, "China's employment will continue to increase this year and remains stable overall." On Wednesday, China's Finance Minister Liu He expressed a willingness to increase the country's fiscal expenditure while noting that the foundation of China's economic recovery remains fragile.

 

However, hawkish remarks from policymakers of the US Federal Reserve (Fed), the Bank of England (BoE), and the European Central Bank (ECB) highlighted the need for additional rate hikes to combat inflation issues, which exerted downward pressure on the price of oil.

 

In response to these events, 10-year US Treasury bond yields surpassed 4% for the first time since early November 2022, while 2-year yields ascended to their highest levels since June 2007 by flashing 4.91%. The increase in US Treasury bond yields reflects the market's concerns, which in turn have impacted on bulls on Wall Street, S&P 500 Futures, and WTI bulls recently. Consequently, S&P 500 Futures were down 0.5 percent as of press time despite the varied closing of Wall Street benchmarks.

 

Moving on, G20 updates could be combined with comments from central bankers and secondary US data to amuse Oil traders.


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