Rising industrial production in China and declining exports in Japan Oil is consistent and gold is declining

2021-09-16T18:30:32
Gold is declining Oil is consistent production in China Rising industrial
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Rising industrial production in China and declining exports in Japan Oil is consistent and gold is declining

Rising industrial production in China and declining exports in Japan Oil is consistent and gold is declining:

The forecast of the crisis in the construction sector in the People’s Republic of China has put pressure on metal prices. For its part, oil continues to hold on to the positions achieved because of the problems of production recovery in the Gulf of Mexico, as well as the lack of energy resources in Europe and China.

Evest follows everything that goes on the market in the following report:

 

Topics:

  1. Markets are waiting for US retail sales data and the eurozone trade balance
  2. Wall Street gains led by energy stocks
  3. Chinese and Japanese stock exchanges decline after disappointing data
  4. Oil is consisting after recording the highest levels since the end of July
  5. Gold declines as the US dollar rises

 

Markets are waiting for US retail sales data and the eurozone trade balance

Conservative sentiment has returned to the global stock markets.

Major Asian markets are mostly declining, led by Chinese indicators (only Australia in the “Green Zone”).

The morale will be determined at the end of the day by the release of retail sales data in the United States, which,
according to Reuters consensus, may show a further decline in consumer activity.

In the absence of a strong negative surprise, they tend to expect higher return attempts than the American market.

The eurozone will issue the trade balance statistics for July.

There is expected to be a wide range of statistics in the United States.

The Fed’s manufacturing activity index in Philadelphia may fall to 19.0 points in September from 19.4 points in August.

U.S. retail sales could fall by 1.0% in August.

 

Wall Street gains led by energy stocks

In the United States, stock indices rose 0.7-0.9% on Wednesday,
with the Standard & Poor’s 500 up 0.9%, and Nasdaq up 0.8% to its highest level in nearly three weeks. 

Growth was led by energy and financial stocks, as well as representatives from the information technology sector.

The New York Empire’s Manufacturing Activity Index rose in September to 34.3 points against a forecast of a fall to 17.9 points from 18.3 points in August. 

Industrial production volume in the United States increased by 0.4% in August compared to July, which is in line with expectations. According to the revised data, industrial production in the United States rose in July by 0.8%, not 0.9%, as previously announced.

The slowdown in growth is due to the shutdown of companies,
particularly refineries for extracting and refining oil, at the end of the month due to
Hurricane Ida. 

As a result, the mining industry (including oil and natural gas) experienced a 0.6% decline.

 

Chinese and Japanese stock exchanges decline after disappointing data

On Thursday, there was also a decline in stock indices in Asia, where Japan’s Nikkei index declined by 0.6%, China’s Shanghai Composite – 1.3%, Hong Kong’s Hang Seng index lost 1.9%,
and US Standard & Poor’s 500 futures by 0.1%.

Yesterday, it was revealed that the volume of industrial production in the People’s Republic of China in August rose by 5.3% on an annual basis after rising by 6.4% the previous month, and retail sales grew by 2.5% compared to the same month the previous year – the lowest pace from August 2020.

On the other hand, Japan’s export growth rate slowed in August and reached 26.2% on an annual basis.

In July it was 37%. Experts predicted an average rise of 34%.

Exports last month totaled 6.606 trillion yen ($60.5 billion),
according to data from the country’s Ministry of Finance.

In the meantime, the volume of imports jumped by 44.7% compared to the same month last year,
to a maximum in 33 months, 7.241 trillion yen. 

In July, growth was 28.5%.

Experts surveyed by Trading Economics predicted a 40% increase in imports in August.

Thus, last month, for the first time since May of this year,
Japan recorded a trade deficit of 635.36 billion yen.

 

Oil is consisting after recording the highest levels since the end of July

In the oil trading market, prices are consistent on Thursday morning after rising the previous day to the highest values since the end of July due to data on a sharp decline in US stocks.

Brent crude futures’ cost for November were $75.48 per barrel (+ 0.03% and + 2.5% on Wednesday),
and West Texas Intermediate crude for October was $72.62 per barrel (+ 0.01% and + 3.1% the previous day). 

According to the United States Department of Energy, the country’s oil reserves last week declined by 6.42 million barrels (3.57 million barrels were expected to decline), gasoline inventory declined by 1.86 million barrels (2.9 million were expected to decline), and distillation output reserves declined.

1.69 million barrels (projected to decline by 1.95 million).

Analysts surveyed by Standard & Poor’s Global Platts projected an average decline of 3.5 million barrels in oil reserves,
and gasoline – 2.2 million barrels and distillation products – by 2 million barrels.

According to the United States Bureau of Security and Environmental Affairs, after Hurricane Ida, the capacity providing 29.5% of oil production has not been restored in the US part of the Gulf of Mexico.

 

Gold declines as the US dollar rises

Gold prices declined on Thursday as the strong dollar affected the attractiveness of metal to holders of other currencies, while investors await a meeting of the United States Federal Reserve for guidance on its schedule for withdrawing stimulus and raising interest rates.

Alloys are seen as a hedge against inflation and currency depreciation due to stimulus is likely to be widespread.

A Fed cut could address these two conditions, reducing the attractiveness of gold.

According to Reuters, the price of spot gold fell by $ 0.4% to $ 1785.13 per ounce,
while US gold futures also declined by $ 0.4% to $ 1787.40.

The dollar index rose by 0.2%.

The Federal Open Market Commission is scheduled to meet on September 21 and 22 amid an increasing number of policymakers pointing to their support for ending the central bank’s bond purchase program as of this year.

Rising industrial production in China and declining exports in Japan Oil is consistent and gold is declining

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