On March 27 (Monday), the U.S. Senate Banking Committee held a hearing on the Silicon Valley Bank incident this week. The Silicon Valley Bank incident has recently continued to affect market sentiment and needs to be focused on; in addition, the first ASEAN+3 deputy finance minister and central bank deputy A long-term meeting will be held, and pay attention to the speeches of Fed officials to seek more signals about the Fed’s next monetary policy.
Commodity closing situation:U.S. gold futures fell 0.6 percent to settle at $1,983.80, while Brent crude settled down 1.2 percent to $74.99. U.S. crude futures fell 1% to $69.26 a barrel.
U.S. stocks closed: The Dow Jones Industrial Average rose 0.41% to 32237.53, the S&P 500 rose 0.56% to 3970.99 and the Nasdaq rose 0.31% to 11823.96.
monday preview
market news
Russia is about to complete its 500,000 barrels per day oil production cut commitment, which is expected to be realized in the next few days
Russian Deputy Prime Minister Alexander Novak said in a statement that the country was close to completing its promised production cuts of 500,000 bpd from the actual output level of 10 million bpd. Novak said Russia was now close to completing the promised production cuts and would meet them in the coming days. (Interface News)
IMF: China’s contribution to world economic growth will reach one-third in 2023
On March 26, at the 2023 annual meeting of the China Development Forum, International Monetary Fund (IMF) Managing Director Kristalina Georgieva said that as China’s economy rebounds, it is expected that China will The contribution rate of world economic growth will reach one-third, which will bring a good boost to the world economy. In addition, in addition to the direct contribution to world economic growth, the IMF analysis pointed out that every 1% growth of China’s economy can drive other Asian economies to grow by 0.3%. (First Finance and Economics)
Director of the National Development and Reform Commission: Investing in China is investing in the future
Zheng Shanjie, director of the National Development and Reform Commission, said at the 2023 annual meeting of the China Development High-level Forum today that China will adhere to the “two unwavering” principles, promote a better combination of an effective market and a promising government, and solidly promote the construction of a high-standard market system. Create a market-oriented, rule-of-law, international, and first-class business environment. Implement a high level of opening up, reasonably reduce the negative list of foreign investment access, implement high standards of national treatment for foreign-funded enterprises, promote stable scale and optimized structure of foreign trade, and promote the high-quality development of the joint construction of the “Belt and Road”. He said to the Chinese and foreign guests attending the China Development Forum, “To walk with China is to walk with opportunities, and to invest in China is to invest in the future. We sincerely hope and are very willing to strengthen communication and cooperation with friends from all walks of life at home and abroad to share the fruits of development.”
my country’s first deep-sea floating wind power platform “CNOOC Guanlan” sets sail
China’s third largest oil company, CNOOC, announced on the 26th that my country’s first deep-sea floating wind power platform “CNOOC Guanlan” set sail at the Fluor Wharf in Zhuhai, Guangdong, and headed for Wenchang, Hainan, which marked my country’s deep-sea wind power. Significant progress has been made in key technologies, and offshore oil and gas development has taken a key step into the “green power era”.
Domestic flights have returned to the level of the same period in 2019, and international flights have recovered by 20%
The reporter sorted out the number of inbound and outbound flights of 41 domestic airports with tens of millions of dollars in the past month and found that the number of airport flights in many cities has been on the rise recently. Sanya Phoenix International Airport, Changchun Longjia International Airport, Shenzhen Baoan International Airport and Zhuhai Jinwan The number of inbound and outbound flights at the airport exceeded the level of the same period in 2019; the number of inbound and outbound flights of 14 ten-million-level airports returned to over 90% of the same period in 2019, and the number of inbound and outbound flights of some ten-million-level airports was relatively low, such as Nanchang Changbei International Airport and Yinchuan Hedong International Airport have not recovered to 70% of the same period in 2019. At present, domestic flights in the civil aviation industry have returned to pre-epidemic levels, while international flights have not yet fully recovered. According to data from the industry edition of Fei Changzhun, from March 1 to March 21, 2023, the number of domestic passenger flights has basically returned to the level of the same period in 2019; About 20% level. Industry insiders told reporters that with the arrival of the flight season change (March 26), the passenger traffic of international flights will continue to show a growth trend.
Brazil’s renewable electricity generation hit a decade high last year
Brazil is the largest economy in Latin America. In recent years, Brazil has become the leader in the field of renewable energy in Latin America. According to data recently released by the Brazilian Electric Energy Exchange Center, Brazil’s total power generation in 2022 will reach the highest level in the past 10 years, and the average monthly power generation will increase to about 67,300 MWh. Among them, the monthly average power generation of renewable energy such as hydropower, wind energy, and solar energy is close to 62,000 MWh, accounting for 92%, setting a new high in 10 years.
Petrobras CEO says ready to be world‘s last oil producer
Petrobras chief executive Jean Paul Prates is not intimidated by the world‘s energy transition. Latin America’s largest oil producer should continue to increase fossil fuel output in the coming decades, he said. “We’re going to gain market share,” Platts said in an interview in Rio de Janeiro. “We’re probably the last country in the world that produces oil.”
“May 1st” holiday outbound travel into the booking peak, the popularity of European travel continues to rise
With the resumption of the pilot program of the second batch of outbound group travel business, the number of domestic outbound group travel destinations has increased to 60. The reporter recently learned that the bookings for outbound travel products during the “May 1st” holiday have reached their peak ahead of schedule. A person in charge of a travel agency in Sanli Tunmen, Beijing, said that Egypt, Kenya, and Europe all have consultations. Thailand, Egypt, Switzerland, Singapore, Malaysia, and the Maldives are currently the popular “May Day” overseas tour destinations. An assistant to the president of a travel agency said that the 40 newly opened countries, such as Iran, France, and Italy, have received the most attention. The entire booking cycle is much in advance. In the past, it was basically booked one month in advance in April. For the entire outbound market this year, reservations were made nearly 2 months in advance. With the increase of airline capacity, the price of the group has dropped by 10% to 20% compared with February. (CCTV)
precious metal
Gold prices fell on Friday, having briefly risen above the key $2,000 an ounce in volatile trade last week, as fears of a contagion banking crisis underpinned safe-haven demand and amid bets the Federal Reserve would pause interest rate hikes. Spot gold fell 0.8 percent to $1,977.01 an ounce, after rising as high as $2,002.89 in early trade.
A rising dollar and a rebound in equities and risk appetite could be driving gold’s losses, said Bart Melek, head of commodity market strategy at TD Securities, but gold could find continued support from big macro developments.
Despite climbing above $2,000 on Monday to hit a one-year high, bailouts for troubled banks eased fears of contagion earlier last week, putting gold on track for its first weekly decline in four weeks. It is down about 0.5% so far. But the banking sector took another hit on Friday, with European giants Deutsche Bank and UBS taking a hit amid concerns that regulators and central banks have yet to contain the worst turmoil in the sector since the 2008 financial crisis.
Several Fed policymakers said on Friday that there were no signs of worsening financial stress at this week’s policy meeting, a fact that allowed them to remain focused on bringing down inflation with yet another rate hike.
Silver fell 0.1% to $23.07, platinum fell 0.7% to $977.776 and palladium fell 0.7% to $1,420.40.
Oil prices ended lower on Friday as European bank stocks fell and U.S. Energy Secretary Jennifer Granholm said it could take years to refill the country’s Strategic Petroleum Reserve (SPR), dampening the outlook for demand.Both benchmark contracts rose this week as turmoil in the banking sector eased. Brent futures rose 2.8% for the week, while U.S. crude futures gained 3.8%. Both benchmark contracts posted their biggest losses in months last week. “We’re riding against macroeconomic headwinds and there’s a new correlation with equities,” said John Kilduff, a partner at Again Capital LLC in New York.
Bank stocks in Europe slipped as Deutsche Bank and UBS Group AG took a hit on concerns that the sector’s worst problems since the 2008 financial crisis could persist. U.S. Treasury Secretary Janet Yellen convened an impromptu meeting of the Financial Stability Oversight Board on Friday morning.
The White House said in October it would buy back oil for the SPR when prices were at or below about $67-72 a barrel. On Thursday, Granholm told lawmakers it would be difficult to take advantage of this year’s low prices to build inventory. Inventories are at their lowest level since 1983 after President Joe Biden ordered the sale of strategic inventories last year.
foreign exchange
The U.S. dollar rose against a basket of currencies on Friday, while the euro and sterling fell sharply amid lingering nervousness about banks. European bank shares tumbled, with banking giants Deutsche Bank AG and UBS Group AG tumbling on concerns that the worst problems for the sector since the 2008 financial crisis have yet to be contained.
“For many, many years, whenever there was a perceived problem or an actual problem that looked like it might be ingrained, people would go and buy dollars, and I think that’s probably what’s happening now,” said Joseph Trevisani, senior analyst at FXStreet.com. “
Risk aversion also sent sterling down 0.53% to $1.222, despite data showing the U.K. economy will grow in the first quarter and confidence is growing. Sterling hit a seven-week high of $1.2341 in choppy trade on Thursday after the Bank of England raised interest rates by 25 basis points to 4.25%, but said a surprise pick-up in inflation could fade quickly, sparking calls for an end to hikes. guess.
Bank shares have been hit this month following the sudden collapse of two regional U.S. lenders and the emergency sale of troubled Swiss lender Credit Suisse to rival UBS.
Christopher Wong, currency strategist at OCBC, said the foreign exchange market appeared to signal a bout of risk aversion, with safe-haven instruments, gold and the yen outperforming, and most other currencies weakening. However, the yen strengthened only 0.08% against the dollar.
The Fed raised interest rates by 25 basis points last Thursday, as expected, but also took a cautious stance on the outlook amid turmoil in the banking sector, even as Fed Chairman Jerome Powell left the door open to further rate hikes if necessary.
U.S. Treasury Secretary Janet Yellen reiterated on Thursday that she was ready to take further steps to ensure the safety of Americans’ bank deposits in an effort to ease investor nerves. Trevisani said the market will be closely watching next week’s personal consumption expenditures (PCE) price index, due on March 31, to see how the data will affect the Federal Reserve’s upcoming interest rate decision. “If you get a number that’s the same as expected or weaker, I think that gives the Fed a reason to pull back, which they’re doing anyway,” he said.