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Hang Seng Index futures opened 0.12% higher at 25,243 points, a premium of 20 points.According to JLC Network Technologys calculations, as of the seventh working day on July 28th, the average price of benchmark crude oil was $89.27 per barrel, with a change rate of 14.64%. Domestic gasoline and diesel retail prices should be increased by 760 yuan per ton. The adjustments are based on: 1. the structure of domestic crude oil imports and the settlement benchmark commodities; 2. minor adjustments may be made during the pricing mechanisms operation based on import structure, etc., and JLC Network Technology will revise accordingly; 3. At 24:00 on July 17th, domestic gasoline and diesel retail prices were increased by 300 and 290 yuan per ton respectively. According to the "ten working days" principle, the adjustment window for this round is 24:00 on July 31st.Alibaba Cloud: Kimi K3 is now available on Alibabas Qianwen AI platform.July 28th, Futures News: Oil prices fell sharply, fuel oil news was unstable, and costs dragged down downstream traders purchasing and selling sentiment at high levels, with most awaiting the latest contract guidance from major refineries. Market trading was subdued, and it is expected that the focus of fuel oil negotiations will be lowered today.On July 28th, a research report from Everbright Futures pointed out that overnight, London spot precious metals fluctuated weakly, with the spot gold-silver ratio around 69.7 and the spot platinum-palladium price spread reaching $330/ounce. US core capital goods orders (excluding aircraft and non-defense capital goods) rose 0.9% month-on-month in June, exceeding market expectations, indicating continued robust corporate investment in equipment; Mays figure was revised upwards to 1.9%. Geopolitically, the US and Iran are conducting "very in-depth negotiations," showing patience and ample time to reach an agreement, but also indicating they will resume military action against Iran if diplomatic efforts fail. The US-Iran conflict has been put on hold again, causing oil prices to fall rapidly, but gold prices have not reacted significantly. The sticky inflation environment likely explains the hawkish expectation for the Feds July policy meeting. In the short term, a defensive approach is still recommended to cope with the high volatility environment, awaiting the FOMC meeting; a light position and observation are advised given the unclear market conditions. Geopolitically, we need to be wary of unexpected news regarding US-Iran negotiations, as any developments could trigger sudden and sharp fluctuations in oil and gold prices. The Feds interest rate decision is largely a done deal, but attention should be paid to whether the wording exceeds expectations. Silver, platinum, and palladium continue to fluctuate in tandem with gold prices, exhibiting significant volatility due to geopolitical influences. (This content and opinion are for reference only and do not constitute any investment advice.)

Fears of Stagflation Caused by Tightening Policies Increase As Asian Stocks Fluctuate

Haiden Holmes

Jun 15, 2022 11:11

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Asia-Pacific stocks were mixed this morning, Wednesday. Ahead of a U.S. Federal Reserve meeting that is likely to provide strong tightening decisions, U.S. share markets continued to decline.


Nikkei 225 dropped 0.67 percent at 10:49 PM ET (2:49 AM GMT).


The KOSPI decreased by 1.21 percent.


Australia's ASX 200 index declined 0.38 percent.


Hong Kong's Hang Seng gained 1.14 percent .


Shenzhen Component rose 0.49 percent and Shanghai Composite rose 0.90 percent.


China's industrial output climbed by 0.7% year-over-year in May, according to statistics released on Wednesday, which was marginally higher than market estimates. In April, a decrease of 2.9% was seen, whereas Investing.com had expected a decrease of 0.7%.


Nonetheless, as Beijing saw clusters of COVID-19 breakouts, the city's officials warned on Tuesday that the city was in a "race against time," heightening concerns that the reinstatement of harsh restrictions might harm the city's economy and global supply chain.


The S&P 500 finished down for the fifth consecutive day due to concerns that Fed measures to tighten monetary policy to calm raging inflation might lead to stagflation.


Investors are now betting on aggressive interest rate rises, such as 75 basis points from the Fed, which would be the largest increase since 1004


Steve Englander, director of global G10 FX research at Standard Chartered Bank, wrote in a note, "Inflation is front and center in the headlines and asset markets, and few are voicing worry about over tightening the monetary policy."

After their greatest decline in decades, Treasuries stabilized. Two-year rates recovered after reaching a level not seen since 2007, while 10-year yields retreated from around 3.5 percent.


Barbara Ann Bernard, chief investment officer of Wincrest Capital Ltd., told Bloomberg, "The sooner they are explicit about how rapidly they would increase interest rates and what amount of inflation they consider acceptable, the sooner the markets will settle down."


The Bank of England will announce its policy decision on Thursday, while the Bank of Japan will announce its decision on Friday.


Bitcoin's value on the cryptocurrency market steadied at $22,000.


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