Negative News coming from china.
Negative news coming from China. A plan to initiate modern national security laws in Hong Kong declared by Beijing. Investors hope that the ruble will stay relatively strong
China drained market emotion. Global oil benchmark fell and now it is raised after some meeting.
Recently Beijing has decided to withdraw its annual economic growth target for 2020. This news is considered as negative for oil. Because it can indicate that China's economic activity will restore at a much slower rate than was previously predicted
Brent oil for July moved rapidly to the downside losing 5% from the previous close. The last trading point of Brent crude was at 34 US.dollars 23 cents per barrel. WTI oil futures for July were down by almost 7.5.% at one point. The American grade is settled at 31 dollars 40 cents a barrel.
A new round of escalation in the US-China conflict raised fears among traders. Recently, Beijing has declared openly A plan to initiate modern national security laws in Hong Kong. This means that the constant deadlock between the two countries may become even harsher.
The new debate is likely to weigh on the American WTI crude.
West Texas intermediate has gained 80% since the opening of May while Brent has added 43%. The connection has affected the falling-market currencies, including the ruble.
Russian currency.
The Russian currency remains extremely sensitive to external factors. It may damage at any time amid the escalating uncertainty between the US and China.
Investors hope that the ruble will stay relatively strong. Also thanking increased demand for Russia's debt securities.
Besides, the bank of Russia is widely expected to cut the key interest rate during its policy meeting in June. markets will Keep an eye on the press conference given byThe head of the Russian Central Bank.
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