. | . |
Asian stocks, crude bounce from losses but recession fears linger by AFP Staff Writers Hong Kong (AFP) July 13, 2022 Asian stockswere mixed Wednesday as trader struggled to recover some of the losses suffered at the start of the week, while oil bounced from a rout, though recession alarms continue to ring loud. The euro clawed its way back slightly after hitting parity with the dollar for the first time in two decades, though it remains under pressure from growing concerns about an energy crisis across the eurozone and the European Central Bank's slower pace of monetary tightening. Traders are also awaiting the release of a series of key indicators this week, including the all-important consumer price index later Wednesday, with expectations for another increase to a fresh 41-year high. Another big spike in prices will reinforce the Federal Reserve's determination to lift interest rates 75 basis points for a second successive month in July, adding to concerns that officials could go too far and tip the economy into recession. Still, Lauren Goodwin of New York Life Investments said policymakers were unlikely to shift from their hawkish tilt for now. "This is widely expected to be a really strong print," she told Bloomberg Television. "Even if it is not, I don't think that changes the Fed's perspective in a couple of weeks. We won't have enough evidence that inflation is convincingly turning over." In a further sign of the pressure being felt around the world from surging prices, the New Zealand and South Korean central banks each lifted rates 0.5 percentage points Wednesday, the first such increase by Seoul since 1999. After losses on Wall Street, Asian equities were mixed. Shanghai edged up after data showed a forecast-beating jump in Chinese exports, while there were also gains in Tokyo, Sydney, Seoul, Wellington and Taipei. However, Hong Kong was unable to hold earlier gains, while Singapore, Manila and Jakarta and Mumbai were in the red. London fell despite data showing the UK economy unexpectedly saw growth last month. Paris and Frankfurt also fell. - Europe gas crisis - Stephen Innes at SPI Asset Management said equities could continue to struggle owing to a perfect storm of crises engulfing trading floors. "Typically, equity markets can deal with one risk relatively well," he said in a note. "But the current setup of sticky inflation, rapid Fed tightening, growth/recession risks and excessive rates volatility, to name a few, have at times left investors defenceless. "And with the market coalescing to a bearish consensus, stocks are having trouble sustaining a meaningful rally." Both main crude contracts rose but were and nowhere near recovering the more than seven percent drops suffered Tuesday, hit by bets on a drop in demand and fears of more Covid-19 lockdowns in Shanghai. The commodity has lost a large chunk of the gains seen after Vladimir Putin's invasion of Ukraine, despite bans on imports from Russia, with some analysts saying consumers were simply choosing not to buy fuel because of the high price. Data from the American Petroleum Institute showed US stockpiles rose 4.76 million barrels last week, Bloomberg News reported citing people familiar with the figures, indicating demand slacking off even during the key summer driving season. Joe Biden's visit to Saudi Arabia on Friday will be followed intently as he tries to persuade the crude giant to pump more to help reduce prices. On currency markets, the euro held just above $1.0 a day after hitting parity on Tuesday for the first time since late 2022, with a worsening energy crisis fanning expectations that the eurozone will plunge into recession. With Russian energy giant Gazprom starting 10 days of maintenance Monday on its Nord Stream 1 pipeline, the bloc -- and particularly gas-reliant Germany -- is waiting nervously to see if the taps are turned back on. "A prolonged cut to the gas supply would halt a lot of economic activity, sending (Germany) deep into recession," said Tapas Strickland at National Australia Bank. He said July 21 -- when the gas should be switched back on -- will be a crucial date. "That date also happens to be the day of the next ECB meeting," he added. "Either of these events are key risk events. Russia playing gas politics by not switching on the gas supply would likely see the euro lurch much lower." - Key figures at around 0810 GMT - Tokyo - Nikkei 225: UP 0.5 percent at 26,478.77 (close) Hong Kong - Hang Seng Index: DOWN 0.2 percent at 20,797.95 (close) Shanghai - Composite: UP 0.1 percent at 3,284.29 (close) London - FTSE 100: DOWN 0.9 percent at 7,143.57 Euro/dollar: DOWN at $1.0035 from $1.0037 Tuesday Pound/dollar: UP at $1.1912 from $1.1889 Euro/pound: DOWN at 84.27 pence from 84.40 pence Dollar/yen: UP at 137.07 yen from 136.84 yen West Texas Intermediate: UP 0.9 percent at $96.74 per barrel Brent North Sea crude: UP 1.0 at $100.51 per barrel New York - Dow: DOWN 0.6 percent at 30,981.33 (close) dan/je
China growth slumps on virus lockdowns, real estate woes: poll Beijing (AFP) July 13, 2022 China's economic expansion slumped in the second quarter to levels not seen since early 2020, an AFP poll of analysts found, owing to painful Covid lockdowns and lingering weakness in the real estate sector. Leaders of the world's second-biggest economy remain firmly wedded to a zero-Covid approach of stamping out clusters as they emerge, but the fallout has sapped growth and is pushing policymakers' annual target of around 5.5 percent out of reach. The slowdown comes after the country's biggest ... read more
|
|
The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us. |