EUR/USD 1.16119
0.036%
Gold 4342.64
0.265%
Oil 75.356
-0.594%
USD/JPY 160.331
-0.072%
GBP/USD 1.34258
-0.001%
GBP/JPY 215.262
-0.071%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On June 17th, Jarden economists warned that the Reserve Bank of Australia (RBA) cannot accelerate the natural decline of inflation by adjusting interest rates. In their research report, they pointed out that the composition of inflation is more important than its level, and they expect core inflation to remain above 3% until the second half of 2027. They noted that the main reason for the significantly higher-than-expected inflation rate is not an overheated domestic economy, but rather related to fuel costs, which are beyond the control of officials or politicians. This situation should ease as the situation in the Middle East normalizes, but Jardens core concern is the extent to which cost pressures will affect Australian goods and services.June 17th - According to a Wall Street Journal survey of economists, 10 out of 12 believe the Philippine central bank is likely to raise its policy rate by 25 basis points to 4.75% on Thursday. Economists at Capital Economics noted in a report that the Philippines is one of the Asian economies most severely affected by the energy shock, and inflation has exceeded the central banks target range in recent months. The firm added that while inflation concerns may prompt the central bank to raise rates, it will also consider economic weakness in its decision-making. Two economists predict a larger rate hike, reaching 50 basis points. HSBC analyst Aris Dacanay believes the rate hike could be even larger given the central banks price stability target.Gold rose in early Asian trading on June 17th. Zaheer Anwari, CEO of The Revacy Fund, stated that improved market confidence, driven by easing concerns about energy supply disruptions, inflation, and interest rates, created a more favorable environment for gold. Traders are closely watching the decisions of several central banks this week. While the Bank of Japans rate hike supported Japanese bond yields and may limit golds upside, investors expect the Federal Reserve to keep rates unchanged. If the Feds updated economic and inflation forecasts remain positive, it could further boost gold prices. Furthermore, continued central bank position building will provide strong structural support. Anwari believes gold prices will find stable support around $4,000 per ounce.Goldman Sachs: We expect liquefied natural gas flows to return to normal by the end of July, later than our previous expectation of the end of June.On June 17, the Peoples Bank of China (PBOC) announced that it will issue the sixth tranche of central bank bills for 2026 through the Hong Kong Monetary Authoritys Central Moneymarkets Unit (CMU) bond bidding platform on June 22, 2026 (Monday). The sixth tranche of central bank bills has a maturity of 6 months (182 days), is a fixed-rate interest-bearing bond, and will be repaid with principal and interest at maturity. The issuance amount is RMB 40 billion, the interest accrual date is June 24, 2026, and the maturity date is December 23, 2026. The maturity date will be postponed if it falls on a public holiday.

As nervous inflation counters good demand data, oil prices tumble

Skylar Williams

Sep 14, 2022 10:44

26.png


On Wednesday, oil prices dipped somewhat due to concerns regarding faster-than-expected U.S. economic expansion. The CPI inflation data undermined OPEC's estimate of solid demand and evidence that U.S. gasoline demand remained robust.


London Brent oil futures fell 0.3% to $93.23 a barrel, while U.S. West Texas Intermediate futures climbed 0.1% to $87.39 per barrel at 20:59 EDT (00:59 GMT). On Tuesday, both contracts decreased as stronger-than-expected U.S. inflation data strengthened the dollar and spurred a sell-off across key asset classes.


Nonetheless, encouraging signals from the Organization of Petroleum Exporting Countries (OPEC) aided in preventing further oil price drops.


Despite inflationary challenges, the cartel noted in a monthly report on Tuesday that it expects oil consumption to climb gradually in 2022 and 2023 due to the resilience of major economies.


OPEC anticipates an increase in oil consumption of 3,1 million barrels per day (bpd) in 2022 and 2,7 million barrels per day (bpd) in 2023.


The American Petroleum Institute said that gasoline inventories in the United States continued to fall for the week ending September 9, indicating that consumers were encouraged by the recent reduction in fuel prices.


While overall U.S. oil inventories grew unexpectedly, a sizable chunk of this increase is likely related to a drawdown from the Strategic Petroleum Reserve.


It is anticipated that official data from the Energy Information Administration will reflect a weekly increase in oil inventories later today. Nonetheless, gasoline inventories are expected to decline.


As investors expected that rising inflation and interest rates would have a negative effect on crude consumption, oil prices have fallen from their early-year peaks. China, the world's largest oil importer, has had a rash of COVID-related lockdowns, casting questions on the sustainability of crude demand this year.


Rising interest rates may also induce a U.S. recession, which is projected to weaken demand. In response to Tuesday's CPI news, the markets are already pricing in a series of significant interest rate hikes this year as the Fed strives to rein in inflation.


Suggestion