• English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
The main contract for 2-year Treasury bond futures (TS) remained unchanged, the main contract for 5-year Treasury bond futures (TF) remained unchanged, the main contract for 10-year Treasury bond futures (T) fell by 0.03%, and the main contract for 30-year Treasury bond futures (TL) fell by 0.12%.At the close of the morning session, domestic futures contracts showed mixed results. Low-sulfur fuel oil (LU) rose nearly 8%, SC crude oil rose nearly 6%, synthetic rubber and fuel oil rose over 4%, container shipping to Europe rose nearly 4%, and liquefied petroleum gas (LPG) rose over 3%. On the downside, Shanghai silver fell over 9%, Shanghai tin and apples fell over 3%, and platinum and red dates fell over 2%.On May 18th, Kazuhiro Sasaki, Head of Research at Philips Securities Japan, stated that at current yield levels, foreign investors may find it easier to buy Japanese government bonds, and he wouldnt be surprised if domestic investors sold foreign bonds and bought Japanese government bonds instead. He said, "From an exchange rate perspective, foreign capital inflows into Japanese bonds could lead to a stronger yen, which could put some pressure on the Japanese stock market." Rising long-term Japanese government bond yields mean that policy rates may rise, which would be a negative factor for the stock market. If interest rates rise too quickly, it will have a significant negative impact on the stock market. This cautious sentiment is intensifying against the backdrop of inflation concerns triggered by rising oil prices.Futures News, May 18th - According to foreign media reports, Malaysian palm oil futures recorded their second consecutive day of gains on Monday, mainly supported by stronger prices in Dalian palm oil, Chicago soybean oil, and crude oil, while the weak ringgit also provided assistance. On the policy and export front, Malaysia has lowered its June reference price for crude palm oil to ensure that export tariffs remain at 10%. Meanwhile, data from inspection agency AmSpec shows that Malaysian palm oil exports from May 1st to 15th are expected to decline by 16.5% compared to the same period last month.On May 18th, Fu Linghui, spokesperson, chief economist, and director of the Department of Comprehensive Statistics of the National Economic Bureau, stated at a press conference held by the State Council Information Office that industrial production growth fluctuated in April, which is a normal monthly fluctuation. Cumulatively, from January to April, the added value of industries above designated size increased by 5.6% year-on-year, maintaining a steady and relatively rapid growth trend. Overall, industrial production is progressing steadily, with continued trends towards high-end, green, and intelligent development. However, it should also be noted that there are currently many external uncertainties, increasing operating cost pressures on enterprises, and some enterprises are still facing difficulties. In the next stage, it is necessary to earnestly implement the spirit of the Central Economic Work Conference and the arrangements of the National Peoples Congress and the Chinese Peoples Political Consultative Conference, focusing on expanding domestic demand, strengthening innovation-driven development, developing new types of productive forces according to local conditions, strengthening the supply of energy and raw materials, alleviating enterprise difficulties, and promoting high-quality industrial development.

NZD/USD finds support near 0.6220; a decline appears more probable due to China's Covid concerns

Alina Haynes

Nov 28, 2022 15:04

 截屏2022-11-28 上午10.39.08.png

 

China's anti-Covid shutdown protests have weakened commodity-linked currencies, resulting in a gap-down start of roughly 0.6220 for the NZD/USD pair. During the previous week, the New Zealand dollar dropped after failing to surpass the round-level barrier of 0.6300.

 

Individuals have taken to the streets in China to demonstrate their opposition against the zero-tolerance policy, leading to a rise in civil unrest. Due to Chinese leader Xi Jinping's conservative posture and authoritarian framework, global markets have become more risk-averse. This has created an economic expansion risk and may worsen the already shaky housing market. Increasing apprehensions about societal risks may also result in political instability, which may have long-lasting detrimental effects on economic structure.

 

Notably, New Zealand is one of China's most important trading partners, and instability in China could damage the New Zealand Dollar.

 

In the meantime, the US Dollar Index (DXY) is profiting from investors' liquidity as the demand for safe-haven assets surges. The USD Index is hovering around 106.20 and attempting to reduce volatility as China's anti-locking protests restrict the upside and predictions of a slowdown in the Federal Reserve's larger rate hike cycle limit the downside (Fed).

 

S&P500 futures are under heavy pressure from market players due to a risk-averse market mentality. In anticipation of Fed chief Jerome Powell's address on Wednesday, yields on 10-year US Treasuries have decreased to approximately 3.68 percent. The Fed Chair's speech could dispel suspicions about a pause to the Fed's current rate-hiking program.