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On January 16, Bank of America Securities issued a report stating that it decided to downgrade the companys rating from "buy" to "neutral" and lowered its target price from HK$93 to HK$80 because it believed that Sun Hung Kai Properties (00016.HK) dividend per share would not increase from fiscal 2025 to fiscal 2026. The bank pointed out that Sun Hung Kai Properties current valuation is 64% lower than its net asset value per share, but in an environment of continued high interest rates, it believes that there is limited room for further compression of its dividend yield (5.3%).Kong Dong-Rak, economist at Daishin Securities: The Bank of Korea also seemed to be under pressure from the headlines of "three consecutive rate cuts" today and remained on hold. Its monetary easing policy stance remained unchanged, and the market reaction still seemed to indicate a rate cut next month.South Koreas central bank governor Lee Chang-yong said: The main reason for the sharp decline in the won against the US dollar was the strengthening of the US dollar, but the currency hedging operations of pension funds helped mitigate the losses.January 16th, in the last days of the Biden administration, bipartisan U.S. senators on Wednesday called on U.S. Trade Representative Kiki Tai to stop "secret negotiations" with Mexico, Canada and Colombia, which they said would weaken investor protections in some U.S. free trade agreements. A source familiar with the trade negotiations refuted the senators description of "secret negotiations," insisting that the U.S. Trade Representatives Office had consulted with members of Congress, even though there was no legal requirement to do so.Market news: Qatar raised the price of al-Shaheen crude oil for March to a more than two-year high.

WTI struggles at $87 as recession worries probe OPEC's forecast and supply deficit fears intensify

Daniel Rogers

Sep 14, 2022 11:42

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After reverting from the weekly high, WTI crude oil traders seek clear direction around $87.50 during Wednesday's Asian session. However, the present hesitation in the price of black gold may be attributable to the mixed concerns regarding the demand-supply matrix.

 

The Organization of the Petroleum Exporting Countries (OPEC) indicated in a monthly report that oil consumption will climb by 3,1 million barrels per day (bpd) in 2022 and by 2,7 million barrels per day (bpd) in 2023, which is unchanged from last month. Despite obstacles such as rising prices, the news also highlighted indications that major economies were performing better than projected.

 

The news that the United States intends to replenish its emergency oil reserves, as well as the German and European move to control Russian oil and gas prices, could also be favorable for energy prices. In addition, rumors that the Western oil deal with Iran is a long way off are bolstering fears of a supply bottleneck and should have helped energy bulls.

 

Tuesday's US inflation statistics revived concerns about the Federal Reserve's fast rate hike and exacerbated recession concerns. Also acting as downward drivers for WTI crude oil are expectations of economic slowdown due to China and Russia-related concerns.

 

In spite of this, the US Consumer Price Index (CPI) for August increased by 8.3% year-over-year, surpassing market expectations by 0.1%. However, the monthly data increased to 0.1%, exceeding the -0.1% projected and the 0.0% shown in previous assessments. The core CPI, or CPI excluding food and energy, likewise exceeded the 6.1% consensus and 5.9% prior to printing at 6.3% for the month in question.

 

It should be mentioned that the weekly prints of the American Petroleum Institute's (API) industry inventory report also contributed to the commodity's downfall. The API Weekly Crude Oil Stock climbed to 6,035 million during the week ending September 9, up from 3,645,000 the previous week.

 

In the future, the price of black gold may stay under pressure due to a stronger US dollar and economic troubles. Before today's official weekly inventory data from the U.S. Energy Information Administration, however, the supply crisis concerns could test the bears (EIA). Thursday's US Retail Sales for the month of August and Friday's preliminary reading of the September Michigan Consumer Sentiment Index will also warrant close attention.

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