EUR/USD 1.15364
0.070%
Gold 4324.47
-0.609%
Oil 80.517
0.116%
USD/JPY 159.387
-0.071%
GBP/USD 1.34934
0.059%
GBP/JPY 215.072
-0.015%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
August 14th - Speculative investors are increasingly betting on another rate hike by the Reserve Bank of Australia (RBA) in November, as inflation remains above the central banks target. Swap market pricing currently estimates a 45% probability of a 25 basis point rate hike by November, up from 38% before Tuesdays RBA rate decision. Trading activity in the November 2026 interbank cash rate futures contract, traded on the Australian Securities Exchange (ASX) derivatives market, rose to a more than three-month high, indicating increased speculative interest. These bets suggest growing market skepticism that the RBAs tightening cycle is not yet over. Although policymakers kept rates unchanged this week, traders will continue to watch upcoming price and employment market data for clues as inflation remains above the RBAs 2%-3% target range.At the close of the morning session, most domestic futures contracts rose. Rapeseed oil and lithium carbonate rose by more than 2%, while industrial silicon, soybean meal, low-sulfur fuel oil (LU), fuel oil, live pigs, synthetic rubber, polysilicon, and coking coal rose by more than 1%. On the downside, palladium fell by more than 3%, silver and platinum fell by more than 2%, and stainless steel (SS) and gold fell by nearly 2%.The local governor said a fire broke out in the port of Ust-Luga, Russia.August 14th - According to foreign media reports, Australian homebuyers continue to reduce borrowing, with new housing loans experiencing their largest drop since the pandemic. Tax reforms and falling house prices have prompted buyers to wait for signs of a market bottom. In the three months to June, new housing loans in Australia fell by 5.2% compared to the first quarter, the largest drop since the end of 2022. Investor borrowing fell by more than 10%, while owner-occupier loans fell by 1.9%. This data confirms the market weakness previously reported by major Australian banks. All three of the countrys major banks reported a significant drop in mortgage applications during the period. With reduced tax incentives diminishing the attractiveness of home purchases for investors, and continued house price declines prompting other buyers to wait for the market to bottom out, housing demand is likely to remain weak. The simultaneous decline in both house prices and loans indicates that Prime Minister Albaneses attempt to curb the increasingly unaffordable housing market through new tax policies is beginning to have an effect.JPMorgan Chase lowered its price target for Honeywell from $262 to $255.

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

66.png

 

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.


Suggestion