China sanctions on Taiwan and threats to U.S.
After the visit of US House Speaker Nancy Pelosi to Taiwan,
and her statements that her country wants the island of Taiwan to have the right to complete freedom
and to maintain its internal stability strongly
But China considered this to be a clear infringement despite warnings,
as China’s ambassador to the United Kingdom criticized Pelosi’s visit as well as her statements regarding Taiwan,
commenting that “those who play with fire burn.”
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In Taiwan authorities announced China’s storming of the island’s territorial airspace
OPEC+ agrees to add 100,000 barrels of oil in September and oil prices fall.
In Taiwan authorities announced China’s storming of the island’s territorial airspace
after the threats I mentioned earlier regarding the infringement of the principle of China One by the United States.
China has not only intensified its sanctions on the island of Taiwan,
including restrictions on imports of fish and fruit from Taiwan.
Chinese reports said that it discovered traces of the coronavirus in some frozen fish products in June.
The ban affected building materials by preventing the export of natural sand used in construction operations,
but so far these sanctions still do not affect the Taiwanese economy.
U.S. Representative Nancy Pelosi’s two-day visit ended on Wednesday,
amid rising tensions between Washington and Beijing.
The effects of the visit events on the markets
Investors are cautiously anticipating the reaction of the Chinese side to Pelosi’s visit to Taiwan,
where it is expected that China will use its vast holdings of Treasury bonds as a weapon.
However, the assets that investors resort to as a safe haven witnessed great fluctuations despite the calm concerns
about the military response from China.
And US bonds were sold off, with the sudden shift in the yen,
which fell by more than 1% during Tuesday’s trading,
and some stocks and futures contracts are also still stable and trying to gain upward momentum.
artical name China sanctions on Taiwan and threats to U.S.
OPEC+ agrees to add 100,000 barrels of oil in September and oil prices fall.
At the end of the trading sessions on Wednesday,
oil prices witnessed a decline of 4%,
and this decline came after the rise in crude oil stocks in the United States
by 4.5 million barrels during the past week,
thus recording the decline for the first time in three weeks,
and the results reflected the expected decline of about 1.4 million barrels,
and gasoline inventories in the United States recorded an increase of about 200,000 barrels,
as a result of the decline in gasoline demand rates by the Americans.
Oil prices are still under the pressure of concern about Corona
after the increasing number of infected people in Adel from countries,
including Japan, and the spread of the epidemic will lead again to restrictions in order to reduce the disease,
and thus will affect demand by weakness, causing a further decline in oil prices.
OPEC+ agrees to add 100,000 barrels per day of oil in September.
During the meeting held yesterday, Wednesday, of the Group’s Joint Ministerial Monitoring Committee and in the presence of the Presidency of the Saudi Minister of Energy Prince Abdulaziz bin Salman,
the committee agreed to increase oil production during the month of September this year to 100,000 barrels per day,
pending its next meeting scheduled for September 5, 2021.
The increase in production by the committee came after promising to raise productivity by
more than 600,000 barrels in the markets within two months, July and August.
U.S. oil exports fall
During the past week, oil exports to the United States fell, as crude production stabilized.
Data from the US Energy Information Administration indicated that crude oil production averaged 12.100 million barrels per day last week,
and US oil exports fell by 1.036 million barrels to settle at 3.512 million barrels per day,
with imports rising by 1.178 million barrels to reach 7.342 million barrels per day.
This brings net U.S. imports currently at 3.830 million barrels per day.
artical name China sanctions on Taiwan and threats to U.S.
Gold continues to rise amid tightening fears and geopolitical tensions between China and the United States.
With the beginning of Thursday’s trading, gold prices rose again,
after they recorded a decline yesterday for the first time in 5 consecutive sessions of rise,
and this came in light of the tightening fears imposed by the Federal Reserve in order to fight inflation,
which reached its highest levels in 40 years, in addition to the decline In the dollar index to settle at 105.90 points.
The President of the US Federal Bank in St. Louis said that
the central bank will work to continue raising interest rates and will not stop until it sees evidence of slowing inflation,
and added that he expects to raise US interest rates by about 1.5% this year,
and the Fed will continue on this path in order to see signs Clear about a convincing slowdown in inflation
Despite the contraction in the gross domestic product for the second consecutive quarter,
it is believed that the economy has not yet reached the recession stage,
and this is due to the strong and stable labor market and the drop in unemployment rates at 3.6%.
Gold rose in the first sessions of the day at levels of $ 1790 an ounce, at a rate of 0.6%
After gold prices fell during yesterday’s trading by about 0.7%, to end the day at 1776 dollars an ounce
With an increase in the US dollar index at 106.51 points, about 3%.
Pessimistic look
Bank of America stressed the fear of investors regarding the stock market for years, in light of mounting fears of a recession
A research note added that the bank’s demand index recorded a decline to its lowest level in more than 5 years
He also said that equity risks are still rising significantly,
and this is an indication of the possibility of a partial recession of 80% and a total recession of 30%,
and that the bank’s main indicators are in line with the bank’s expectations of an economic recession.
Investors are still in constant anticipation of developments between Washington and Beijing after Pelosi’s visit to Taiwan,
despite Chinese warnings, while Pelosi affirmed her and her country’s support for the security
and stability of the island of Taiwan and that she will not abandon it.
In terms of reports and economic data issued,
the American Supply Institute’s index of services purchasing managers rose in July to 56.7 points,
greater than in June, which was at 55.3 points,
and thus it is the opposite of expectations that were indicating the possibility of a decline at 53.5 points.
artical name China sanctions on Taiwan and threats to U.S.