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The Eurozones preliminary July CPI annual rate was 2.9%, below the expected 2.90% and the previous reading of 2.80%.The Eurozones core CPI annual rate preliminary reading for July was 2.2%, below the expected 2.3% and the previous reading of 2.1%.US semiconductor stocks continued to rise in pre-market trading, with TSMC (TSM.N) up more than 4%, ASML (ASML.O) up 3.2%, Arm (ARM.O) up 4.8%, and Broadcom (AVGO.O) up more than 1.3%.On July 31st, Hong Kong stocks opened slightly lower this morning after four consecutive days of gains. The Hang Seng Index opened 21 points lower at 25837, and the market briefly dipped below the 250-day moving average, falling as much as 235 points to a low of 25622. It then gradually stabilized and rebounded, even turning positive at one point during the session. In the afternoon, the market continued to fluctuate around 25800. At the close, the Hang Seng Index rose 0.1%, with a gain of over 13% in July; the Hang Seng Tech Index rose 0.53%, with a gain of nearly 8% in July. The total turnover of the Hang Seng Index was HK$328.17 billion. On the sector front, storage concept stocks, AI newly listed stocks, and PCB concept stocks rebounded sharply, while brain-computer interface, electronic components, and commercial aerospace sectors also saw significant rebounds. Alcoholic beverages, consumer electronics, and mainland-traded stocks fluctuated and retreated, while automobile, paper, and dairy stocks weakened during the session. In terms of individual stocks, CSOPs double-leveraged long position in Hynix (07709.HK) surged over 67.5%, CSOPs double-leveraged long position in Samsung Electronics (07747.HK) surged over 48%, Zhipu (02513.HK) surged over 14.5%, MiniMax (00100.HK) surged over 13%, and Laopu Gold (06181.HK) surged over 10%; Xiaomi Group (01810.HK) fell over 7%, and Budweiser APAC (01876.HK) fell over 6.5%.The European Central Bank (ECB) reported that in June, the composite borrowing cost index for new corporate loans rose 15 basis points to 3.79%; the composite interest rate index for new household home loans remained largely unchanged at 3.51%. The composite interest rate for new corporate time deposits rose 17 basis points to 2.21%; the overnight corporate deposit rate rose 6 basis points to 0.59%. The composite interest rate for new household time deposits rose 13 basis points to 2.09%; the overnight household deposit rate remained largely unchanged at 0.28%.

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%.