Energy News  
TRADE WARS
China lockdown worries hit Asian equity, crude markets
by AFP Staff Writers
Hong Kong (AFP) July 11, 2022

Asian markets and oil prices mostly fell Monday with a fresh Covid flare-up in Shanghai fanning fears of another economically painful lockdown in China's biggest city.

The news came after a forecast-busting US jobs report last week indicated the world's top economy was coping so far with the Federal Reserve interest rate hikes, giving it room for more as it battles soaring inflation.

Traders are also keeping tabs on developments in Washington as President Joe Biden weighs removing some of the Donald Trump-era tariffs on Chinese goods worth hundreds of billions of dollars.

Shanghai recorded more than 120 virus cases at the weekend, having seen its first case of the highly contagious BA.5 Omicron strain, forcing officials to launch another mass testing drive.

With China fixated on its zero-Covid strategy of wiping out the disease, there is increasing concern that authorities will revert to another painful lockdown, with Shanghai residents having only emerged from a two-month confinement in June.

There have also been new infections uncovered in other parts of the country, including Beijing.

Data this week will provide a fresh update on the economic impact of those measures, as well as similar strict controls in Beijing.

The prospect of another lockdown sparked a sell-off in Hong Kong and Shanghai, while there were also losses in Sydney, Seoul, Taipei, Manila, Jakarta and Wellington.

However, there were gains in Tokyo as traders welcomed Japan's ruling bloc securing a strong win in Sunday's upper house election, held days after the assassination of former premier Shinzo Abe.

The result should provide the government with some stability, while there were also hopes for a cabinet reshuffle and economic stimulus.

- Fed 'must be resolute' -

The weak start to the week followed a tepid lead from Wall Street, where the strong jobs reading ramped up bets on further big Fed rate hikes after officials said the economy was strong enough to withstand them.

The central bank is predicted to announce a second successive 0.75 percentage point lift at its next meeting this month, while further big increases are also expected before the end of the year.

Policymakers have said they are determined to bring inflation down from four-decade highs, even if that means hurting growth.

On Friday, New York Fed president John Williams reiterated its determination, saying in a speech: "Inflation is sky-high, and it is the number one danger to the overall health and stability of a well-functioning economy.

"I want to be clear: this is not an easy task. We must be resolute, and we cannot fall short."

Worries about another shock to the Chinese economy from possible shutdowns also dented oil markets as concerns about a hit to demand outweighed ongoing concerns about tight supplies.

Still, there is a view that prices will remain elevated for now.

"Covid numbers are ticking up again," said SPI Asset Management's Stephen Innes.

"Although the possible demand impact of a recession continues to weigh on sentiment, the prevailing view, at least for now, is that the longer-term structural issues facing the oil market will support prices."

Investors will be keeping watch on Biden's visit this week to Saudi Arabia, where he is expected to push for the crude giant to ramp up production to make up for the output lost to sanctions against Russia.

- Key figures at around 0230 GMT -

Tokyo - Nikkei 225: UP 1.0 percent at 26,787.00 (break)

Hong Kong - Hang Seng Index: DOWN 2.4 percent at 21,194.75

Shanghai - Composite: DOWN 1.2 percent at 3,314.43

West Texas Intermediate: DOWN 0.7 percent at $104.07 per barrel

Brent North Sea crude: DOWN 0.4 percent at $106.63 per barrel

Euro/dollar: DOWN at 1.0148 from 1.0183 on Friday

Pound/dollar: DOWN at 1.1990 from 1.2034

Euro/pound: UP at 84.65 pence from 84.59 pence

Dollar/yen: UP at 137.03 yen from 136.10 yen

London - FTSE 100: UP 0.1 percent at 7,196.24 (close)

New York - Dow: DOWN 0.2 percent at 31,338.15


Related Links
Global Trade News


Thanks for being here;
We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor
$5 Billed Once


credit card or paypal
SpaceDaily Monthly Supporter
$5 Billed Monthly


paypal only


TRADE WARS
Asian stocks up as recession fears ease, yen rises after Abe shooting
Hong Kong (AFP) July 8, 2022
Asian markets rose Friday on easing recession fears with optimism boosted by hopes that Joe Biden will remove some Trump-era tariffs from Chinese goods, while the euro extended losses and headed close to parity with the dollar. The safe-haven yen also picked up following news of Japan's former prime minister Shinzo Abe being shot during a campaign rally. He is still fighting for his life. Equities were also boosted by reports that Beijing was considering a huge stimulus push to the struggling e ... read more

Comment using your Disqus, Facebook, Google or Twitter login.



Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle

TRADE WARS
ECB urges banks to 'step up' climate risk management

Global effort to police 'greenwashing' begins to take shape

Divided MEPs to vote over EU green label for gas, nuclear

ECB unveils plan to push climate-friendly investments

TRADE WARS
Volkswagen takes on US, China rivals with battery factory

HKUST develops world's most durable hydrogen fuel cell

Sieving carbons: Ideal anodes for high-energy sodium-ion batteries

Ultra-thin, high-efficient piezoelectric element generate electricity from daily life movement

TRADE WARS
Modern wind turbines can more than compensate for decline in global wind resource

End-of-life plan needed for tens of thousands of wind turbine blades

Engineers develop cybersecurity tools to protect solar, wind power on the grid

1500 sensors for the rotor blades of the future

TRADE WARS
New photocatalytic membrane that can be cleaned using light energy

Seeing photovoltaic devices in a new light

The structure-performance of bulk-heterojunction organic solar cells

Increasing efficiency of solar cells with more light absorption capacity

TRADE WARS
Better estimating the risk of coastal flooding for nuclear power plants

EU Parliament backs green label for gas, nuclear

Framatome selected to provide full system decontamination at Bruce Power Units 3 and 4

Sweden's Vattenfall eyes small nuclear reactors

TRADE WARS
Study points to Armenian origins of ancient crop with aviation biofuel potential

Solar-powered chemistry uses CO2 and H2O to make feedstock for fuels, chemicals

Technologies boost potential for carbon dioxide conversion to useful products

An unusual triangular molecule that makes jet fuel

TRADE WARS
Researchers create tool to evaluate water use for responsibly sourced gas operations

Kurdish Iraq decries 'unjust pressure' from Baghdad in oil row

Why natural gas is not a bridge technology

Natural gas is key to WVU engineer's vision for clean hydrogen energy

TRADE WARS
Scientists link the changing Azores High and the drying Iberian region to anthropogenic climate change

Western US drought brings Great Salt Lake to lowest level on record

Knowing the Earth's energy imbalance is critical in preventing global warming, study finds

Several Iran provinces shutter public buildings over sandstorm pollution









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.