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January 5 - On the afternoon of January 5, Chinese President Xi Jinping held talks in Beijing with South Korean President Lee Jae-myung, who was on a state visit to China.On January 5th, gold prices, along with other precious metals, climbed as safe-haven demand surged following the US arrest of Venezuelan President Maduro. Analysts at Saxo Bank in Denmark stated, "Gold and silver rebounded as investors sought refuge after the US action against Venezuela. Trumps statement that the US plans to take over Venezuela further exacerbated governance uncertainty." Last year, driven by Federal Reserve rate cuts, strong central bank demand, increased inflows into exchange-traded funds (ETFs), and investors shifting from sovereign bonds and currencies to hard assets, gold prices rose nearly 65%, marking their strongest annual performance since 1979.On January 5th, the Shanghai Futures Exchange (SHFE) reported the following warehouse receipts and changes: 1. Butadiene rubber futures warehouse receipts: 23,160 tons, an increase of 23,160 tons compared to the previous trading day; 2. Fuel oil futures warehouse receipts: 0 tons, a decrease of 201,390 tons compared to the previous trading day; 3. Tin futures warehouse receipts: 7,345 tons, a decrease of 97 tons compared to the previous trading day; 4. Nickel futures warehouse receipts: 38,424 tons, an increase of 758 tons compared to the previous trading day; 5. Low-sulfur fuel oil warehouse futures warehouse receipts: 55,230 tons, unchanged compared to the previous trading day; 6. Gold futures warehouse receipts: 97,704 kg, unchanged compared to the previous trading day; 7. Natural rubber futures warehouse receipts: 100,690 tons, an increase of 100 tons compared to the previous trading day; 8. Alumina futures warehouse receipts: 156,917 tons, an increase of 156,917 tons compared to the previous trading day; 9. Copper futures warehouse receipts totaled 90,282 tons, an increase of 8,507 tons from the previous trading day; 10. Pulp warehouse futures warehouse receipts totaled 109,576 tons, an increase of 11,089 tons from the previous trading day; 11. Pulp mill warehouse futures warehouse receipts totaled 6,000 tons, unchanged from the previous trading day; 12. Medium-sulfur crude oil futures warehouse receipts totaled 3,464,000 barrels, unchanged from the previous trading day; 13. TSR20 rubber futures warehouse receipts totaled 57,959 tons, unchanged from the previous trading day; 14. Zinc futures warehouse receipts totaled 41,374 tons, a decrease of 1,045 tons from the previous trading day; 15. Stainless steel warehouse futures warehouse receipts totaled 47,393 tons, a decrease of 304 tons from the previous trading day; 16. Rebar warehouse futures warehouse receipts totaled 56,844 tons, unchanged from the previous trading day; 17. International copper futures warehouse receipts totaled 1,053 tons, unchanged from the previous trading day; 18. Aluminum futures warehouse receipts totaled 82,796 tons, an increase of 1,127 tons from the previous trading day; 19. Silver futures warehouse receipts totaled 669,547 kg, a decrease of 22,091 kg from the previous trading day; 20. Lead futures warehouse receipts totaled 13,313 tons, a decrease of 23 tons from the previous trading day; 21. Petroleum asphalt plant warehouse futures warehouse receipts totaled 16,660 tons, unchanged from the previous trading day; 22. Petroleum asphalt warehouse futures warehouse receipts totaled 8,260 tons, unchanged from the previous trading day; 23. Hot-rolled coil futures warehouse receipts totaled 104,588 tons, unchanged from the previous trading day.On January 5th, European oil stocks opened mixed, with prices remaining relatively stable despite uncertainty. Oil prices retreated somewhat after reacting to US intervention in Venezuela, but the short-term oil market landscape appears largely unchanged. Hargreaves Lansdown analyst Matt Britzman wrote in a report, "The real question is the medium-term impact. If sanctions are eased and significant funds flow back into crumbling infrastructure, Venezuela could eventually contribute substantial supply, but this will be a long and gradual process." In individual stocks, Spains Petronas led the gains, rising nearly 2%. Italys Eni rose 0.5%, and Britains Shell edged up 0.2%. However, BP fell 0.4%, and Frances Total Energy declined 0.5%.On January 5th, European indices opened higher as traders turned to defense stocks following the US ouster of Venezuelan President Maduro. Armsmaker Leonardo surged 5.7%, and Rheinmetall jumped 6.4%, driving Italys FTSE MIB index up 0.7% and Germanys DAX index up 0.8%. In Spain, defense technology supplier Indra Systems rose 4.2%, pushing the Spanish IBEX 35 index up 0.55%. French defense company Thales rose 4%, with the countrys blue-chip index following suit, gaining 0.4%. In the UK, despite the turmoil in Venezuela, oil giants performed modestly, with Shell and BP declining slightly; however, strength in mining stocks—including Fresnillos 4.6% gain—pushed Londons FTSE 100 index up 0.4%. Additionally, semiconductor stocks drove the Dutch AEX index up 1.1%.

0.8450 is being reached by EUR/GBP as the prospect of a UK recession looms

Daniel Rogers

Aug 05, 2022 14:46

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Following a huge upward rise from 0.8360 on Thursday, the EUR/GBP pair has subsequently turned sideways around 0.8430 in the Tokyo session. After the Bank of England (BOE) hiked interest rates by 50 basis points, the cross displayed a significant upward rise (bps) (bps). The BOE lifted interest rates by 50 basis points in succession, bringing them to 1.75 percent.

 

The investing community is aware that UK household earnings have been unsteady during the preceding few months. In addition, the economy's inflation rate is fast expanding. The inflation rate was 9.4 percent prior. The recent statement by BOE Governor Andrew Bailey that price increases might exceed 13 percent has sent shockwaves across the market.

 

The runaway inflation is now escalating, leaving the BOE with very little flexibility to tighten its monetary policy. The BOE is in poor shape as a result of the dismal economic data and the continuing political upheaval following the departure of UK Prime Minister Boris Johnson. A recession in the UK economy is extremely probable in the case that the inflation rate is close to 13 percent.

 

German manufacturing order numbers for the Eurozone have decreased by 0.4 percent against an anticipated 0.8 percent decline and a prior monthly contraction of 0.2 percent. Falling orders from factories indicate sluggish demand in Germany as a whole. It is vital to remember that Germany is a key element of the European Union (EU), and that economic data from Germany has a huge effect on people who favor the common currency.