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February 9th - Goldman Sachs trading arm stated that after a rebound in U.S. stocks last Friday, almost recovering the weeks brutal losses, this week will face further selling pressure from trend-following algorithmic funds. The S&P 500 has broken through a short-term trigger point, prompting commodity trading advisors (CTAs) to sell stocks. Goldman Sachs expects these systematic strategies, which track stock market movements rather than fundamental factors, to remain net sellers in the coming week, regardless of market direction. Goldman Sachs stated that if the stock market falls again, it could trigger approximately $33 billion in selling this week. If market pressure persists and the S&P 500 falls below 6707 points, there could be as much as $80 billion in systemic selling over the next month. In a stable market environment, CTAs are expected to sell approximately $15.4 billion in U.S. stocks this week, and even if the stock market rises, these funds are still expected to sell approximately $8.7 billion.February 9th - Goldman Sachs trading arm stated that after a rebound in U.S. stocks last Friday, almost recovering the weeks brutal losses, this week will face further selling pressure from trend-following algorithmic funds. The S&P 500 has broken through a short-term trigger point, prompting commodity trading advisors (CTAs) to sell stocks. Goldman Sachs expects these systematic strategies, which track stock market movements rather than fundamental factors, to remain net sellers in the coming week, regardless of market direction. Goldman Sachs stated that if the stock market falls again, it could trigger approximately $33 billion in selling this week. If market pressure persists and the S&P 500 falls below 6707 points, there could be as much as $80 billion in systemic selling over the next month. In a stable market environment, CTAs are expected to sell approximately $15.4 billion in U.S. stocks this week, and even if the stock market rises, these funds are still expected to sell approximately $8.7 billion.US President Trump: The US election is full of fraud and theft, and has become a laughing stock around the world.Market news: Multiple explosions were heard in Kyiv, the capital of Ukraine.Domestic News: 1. Guotou Silver LOF: Trading suspended from opening on February 9th until 10:30 AM. 2. Several banks raise deposit interest rates as the Spring Festival approaches. 3. Macaus daily inbound and outbound passenger flow breaks record again with 867,000 visits. 4. Jiangsu Provincial Government holds symposium for real estate professionals. 5. Qianwen and Yuanbao red envelope codes can now be copied on WeChat. 6. Hong Kong Financial Secretary Paul Chan: Hong Kongs achievements in cultivating new productive forces are gradually becoming apparent. 7. Hong Kong SAR Government summons Panamas Consul General again, criticizing the ruling for causing profound damage to Panamas economic development. International News: 1. Middle East Situation: ① Hamas senior official: As long as Israel continues its occupation, the Palestinians will not stop resisting. ② Israeli Prime Minister Netanyahu will meet with Trump next Wednesday to discuss the Iranian issue. ③ Iranian Foreign Minister: Iran will never accept "zero enriched uranium". ④ Iranian Armed Forces Chief of Staff: No interest in launching a regional war. ⑤ Pentagons "pizza index" surges. 2. Japanese Election: ① Exit polls: Japans ruling coalition is expected to win a majority of seats in the House of Representatives. ② NHK: The ruling coalition led by Prime Minister Sanae Takaichi is poised to win at least two-thirds of the seats in the House of Representatives. ③ Prime Minister Sanae Takaichi: Will accelerate consideration of reducing the consumption tax. A weak yen has both advantages and disadvantages. 3. Russia-Ukraine Situation: ① Russian media: The US-India joint statement did not mention abandoning the purchase of Russian oil. ② Ukrainian President Zelensky: Russian energy infrastructure is a legitimate target of Ukraines attacks. ③ Ukrainian Foreign Minister denies any connection between Ukraine and the attack on the Russian general. 4. Denmark: Negotiations with the US on Greenland have not met expectations. 5. Data analysis from Vanda Research shows that retail investors poured $430 million into the largest silver ETF, SLV, in the six trading days ending Thursday. 6. US Treasury Secretary Bessenter: Does not expect the Federal Reserve to act quickly on the balance sheet issue. Believes Warsh will be very independent. 7. The Bhumjaithai Party announced that it has become the largest party in the Thai House of Representatives.

WTI price falls below the $76 mark amid altering financial dynamics and global growth concerns

Alina Haynes

Mar 14, 2023 11:40

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The West Texas Intermediate (WTI) price is unchanged on Tuesday amid a weaker US Dollar and muted risk sentiment. WTI fell to a low of $72.31 on Monday as a result of a strong risk-off environment sparked by the repercussions from Silicon Valley Bank (SVB) and Signature Banks. Since then, the WTI price has risen significantly as a result of the Federal Reserve's plan to intervene. After reaching a peak of approximately $76 on Monday, the WTI price retreated as the dynamics of the US Dollar shifted.

 

The financial system is being harmed by rising borrowing costs around the world and growth concerns are being raised. The WTI price is in a corrective decline as the narrative of China's reopening does not appear optimistic, as the country has lowered its growth forecast to 5.0%.

 

The SVB debacle exacerbates global growth concerns, as it is interpreted as the first of many financial system dings. Due to rising financing costs, businesses are struggling to make their repayments, which will eventually result in a decline in demand.

 

Despite tightened production and numerous voluntary cuts from the Organization of the Petroleum Exporting Countries (OPEC), the WTI price is struggling to surpass $80.

 

Oil prices are influenced by a number of variables, including the US dollar, inflation, OPEC, and global growth concerns. Considering the aforementioned factors, it is difficult to rationalize the directional nature of oil prices, but it appears that the oil market is primarily driven by development concerns.

 

Since these nations are struggling to maintain oil prices above the desired $80 mark, it will also be crucial to monitor the OPEC position on reduced oil prices.