|
2022-08-16 Economy
|
|
Oil prices tumble on possible Iran deal, stuttering China economy
|
[Rudaw] Oil prices slumped more than five percent Monday on the rising prospects of a return of Iranian oil to the market and data showing China's economic recovery stuttering under Covid-19 restrictions.
Stock markets were broadly steady and the dollar traded mixed as investors welcomed signs of cooling US inflation, which nevertheless remains at the highest level in decades.
"The dark clouds of recession appear to be appearing when it comes to the global economy, with the latest China data reinforcing those fears," said market analyst Michael Hewson at CMC Markets UK.
China's central bank slashed key interest rates in a surprise move Monday as a raft of data showed weakness in the world's second-largest economy.
The figures showed China's industrial production and retail sales growth for July came in lower than expected.
Industrial production was up 3.8 percent year-on-year, but down from 3.9 percent in June and well below analysts' forecasts.
"The risk of stagflation in the world economy is rising, and the foundation for domestic economic recovery is not yet solid," China's National Bureau of Statistics warned.
Stagflation refers to long-running high inflation combined with rising unemployment and weak growth.
Beijing's rigid adherence to a zero-Covid strategy has held back economic recovery as snap lockdowns and long quarantines batter business activity and a recovery in consumption.
Hewson added that "problems in the property sector also aren't helping, where many home buyers are halting mortgage payments in protest at delays to the completion of new homes."
- IRAN TALKS -
Meanwhile,
...back at the shootout, Butch shot Ike through the elbow. Take that, Ike! he yelled......
Iran
 ...The nation is noted for spontaneously taking over other countries' embassies, maintaining whorehouses run by clergymen, involvement in international drug trafficking, and financing sock puppet militias to extend the regime's influence...
's foreign minister said Tehran would deliver its "final" proposal later Monday on talks to revive its 2015 nuclear accord with world powers, after Washington had accepted key demands.
A deal would mean that Iran's crude output of 2.5 million barrels per day would no longer be under international sanctions and help relieve supply constraints that have been pushing up prices.
"Iran would flood the market," said analyst Aditya Saraswat at energy research firm Rystad, who added the country could ramp up production by another million barrels per day.
Oil prices, which had already been sharply lower on the Chinese data, pushed even further lower and recording daily drops of more than five percent, before later clawing back some of their losses.
Europe's main equity markets finished with modest gains while Wall Street stocks dipped in morning trading.
Market analyst Fawad Razaqzada at City Index and FOREX.com said talk of a US recession is back after a key manufacturing survey plunged into the negative, a signal of worsening business conditions.
Markets are also keenly awaiting the release Wednesday of the minutes from the Fed's last policy meeting in July for clues to the US central bank's interest rate plans.
Investors are concerned that after successive three-quarter point raises any further increases of a similar magnitude could choke off economic recovery.
The negative reading for the new orders question on the New York Federal Reserve's Empire State Manufacturing Survey -- compared to the positive result from July -- shows that the interest rate hikes may already be having an effect on slowing activity that has fuelled inflation.
Patrick O'Hare, an analyst at Briefing.com, called lower stock prices a reflection "of weakening demand that comes with a weakening economy, and, by extension, a weakening in earnings growth prospects." 
|
Posted by trailing wife 2022-08-16 00:00||
||
Front Page|| [7 views ]
Top
|
|
Posted by NN2N1 2022-08-16 10:13||
2022-08-16 10:13||
Front Page
Top
|
|
Posted by Tom 2022-08-16 11:20||
2022-08-16 11:20||
Front Page
Top
|
|
Posted by EMS Artifact 2022-08-16 14:15||
2022-08-16 14:15||
Front Page
Top
|
|
Posted by Besoeker 2022-08-16 14:19||
2022-08-16 14:19||
Front Page
Top
|
|
Posted by Bobby 2022-08-16 14:35||
2022-08-16 14:35||
Front Page
Top
|
|
Posted by Bobby 2022-08-16 14:36||
2022-08-16 14:36||
Front Page
Top
|
|
Posted by Frank G 2022-08-16 15:54||
2022-08-16 15:54||
Front Page
Top
|
|
01:11 Angealing+B.+Hayes4677
00:59 Angealing+B.+Hayes4677
00:48 trailing wife
00:44 Elmaper+McGurque1612
00:36 Elmaper+McGurque1612
00:18 Beldar+Uneter3543
00:11 Skidmark
|
