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Futures News, July 15th - Data released by the Petroleum Institute of Japan (PAJ) on Wednesday showed that for the week ending July 11th, Japans commercial crude oil inventories stood at 10,268,993 kiloliters, a decrease of 331,964 kiloliters from the previous weeks 10,600,957 kiloliters. Refinery operational capacity utilization was 86.20%, compared to 83.00% the previous week. Refinery design capacity utilization was 74.60%, unchanged from 73.00% the previous week. Due to changes in Japans petroleum product supply structure, the PAJ has suspended the release of weekly inventory details for gasoline, jet fuel, kerosene, and diesel.On July 15th, NIO became a strategic investor in Changxin Technology, committing to a subscription amount of 158 million yuan with a lock-up period of 18 months. The two companies will engage in strategic cooperation on existing automotive-grade LPDDR4X and LPDDR5X products, aiming to build a stable and mutually trusting strategic supply relationship. In recent years, NIO has continuously invested in core technologies such as chips, intelligent driving, and energy, and has deepened its strategic cooperation with key partners in the industry chain.July 15th - Anta Sports (02020.HK) announced that its former CEO, Xu Yang, has resigned due to family reasons. The group has approved his resignation and he will be reassigned. Lai Shixian, Executive Director and Co-CEO of Anta Group, will assume the role of acting CEO of the Anta brand, effective immediately, and will be fully responsible for the brands daily operations and management. Anta emphasized that its established long-term development strategy remains unchanged.On July 15th, Yonhap News Agency reported that South Korean retail investors purchased approximately 400 billion won worth of SK Hynixs American Depositary Receipts (ADRs) on their first day of trading on Nasdaq. SK Hynix ADRs began trading on Nasdaq on July 10th, with approximately 84,000 investors purchasing the stock through nine major South Korean securities firms. South Korean investors collectively held 1.36 million shares that day, representing 0.76% of the total 177.9 million shares issued. Based on the issue price, this holding was worth approximately 338.9 billion won. If clients of other securities firms not included in the statistics are taken, the number of South Korean investors who purchased the stock is estimated to be close to 100,000, with a total holding of approximately 400 billion won. The strong buying by South Korean retail investors was also reflected in the domestic stock market. On July 10th, individual investors made net purchases of 788,510 SK Hynix shares in the South Korean stock market, amounting to approximately 1.7 trillion won. Even with the stock falling 16.15% on the 13th, retail investors continued to increase their holdings, buying approximately 3 trillion won.On July 15, Minister of Commerce Wang Wentao met with Solomon Islands Minister of Foreign Affairs and Foreign Trade Honipwela on July 14, and they held friendly exchanges on issues such as China-China economic and trade relations. Wang Wentao stated that China is willing to work with the Solomon Islands to continue expanding mutually beneficial economic and trade cooperation and promote new developments in the China-China comprehensive strategic partnership for a new era. Honipwela stated that since the establishment of diplomatic relations between the Solomon Islands and China, bilateral relations have continuously developed and improved, and he looks forward to further deepening cooperation with China in various fields. After the meeting, Wang Wentao and Honipwela jointly signed the "Framework Agreement on Enhancing the Economic Partnership." Both sides will conduct flexible and pragmatic negotiations based on this agreement to reach mutually beneficial institutional arrangements for expanding bilateral trade, investment, and practical cooperation, better promote regional supply chain cooperation, and elevate China-China economic and trade relations to a new level.

Natural Gas prices fall below $2.70 despite USD Index attempts to recover, and demand concerns grow

Alina Haynes

Mar 14, 2023 13:12

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After a perpendicular recovery to close to $2.70 in the Asian session, Natural Gas futures have turned sideways. Weakness in the US Dollar Index (DXY), in general, has aided the upward bias in natural gas prices. Natural Gas futures appear vulnerable near $2.70 as the USD Index has demonstrated a recovery move to near 103.90 as investors become anxious ahead of the release of the United States Consumer Price Index (CPI) data.

 

The Federal Reserve's decision to raise interest rates is anticipated to have a negative impact on industrial demand for natural gas (Fed). The market anticipates that Fed chair Jerome Powell's scheduled rate hikes will lead to a recession in the near future.

 

Meanwhile, Winter is nearing its conclusion and summer has not yet arrived. Consequently, demand for residential purposes to heat domestic spaces will remain low. Additionally, because residences will require less electricity to operate air conditioners, power companies are less reliant on natural gas.

 

The recent decline in the USD Index is what has given Natural Gas prices new life. The US Energy Information Administration's (EIA) inventory data, which is released every Thursday, will dominate this week's trading in Natural Gas futures.

 

Going forward, investors eagerly anticipate the publication of US inflation data in order to form a new consensus. According to the projections, the headline CPI could fall to 6.0% from the previous release of 6.4%. And, core inflation, which excludes crude and food prices, is anticipated to decrease slightly to 5.5% from the previous release of 5.6%.