Yuan is going lower, oil crudes are losing price and Russian gas has lost one of the buyers – things you need to know this trading day.
China’s economy under a hit.
Chinese national currency – yuan is taking some serious hits this morning. It has fallen down to the lowest point since its 2015 devaluation after a narrower than expected trading surplus was announced.
The rate has been weakened by 0.6 percent with the exchange rate being at 6.3195 right now. Earlier the currency has slipped by as much as 1 percent.
Earlier in a week the currency has reached a two-year peak, which, as we can see now, wasn’t meant to last.
Oil prices are slipping further
Brent futures are losing positions as the fall extends from reaching the –year high with the price of 71 USD per barrel in the end of January. Today’s loss is bringing the crude’s futures to the price of $65.37. Although the PVM Oil Associates strategist Tamas Varga has stated that it really doubtful that the price is going to sink much lower from this point.
As the USA are making theit output numbers grow, the price for the WTI oil is going even lower and is touching the psychological mars of 60 USD with the current price a bit higher than $61.
“Clearly, the data points to an imbalanced market and oil prices have responded by turning sharply lower,” said market analyst Fawad Razaqzada,.
Poland to stop buying Russian gas.
Poland was the oldest Russian client on the gas market and now the partnership is going to pun to its end. Poland is currently getting 2/3 of its gas from from Russia, but the country wants to make a change in order to start getting Norwegian gas with the Baltic Pipe – a project that was launched in 2015.
Piotr Naimski, the government official in charge of strategic energy infrastructure, “We’re not diversifying our supplies in order to continue with Russia. It’s a question of security and the Baltic Pipe is not a part of negotiations with Gazprom.”
He continued “If we want to prolong the Gazprom contract we would need to start talks in December 2019, but by that time we’re going to be certain that the Baltic Pipe will be built, so we’re in a comfortable situation. At the same time, Poland is ready for any kind of supply risk in the transition period.”
Stocks, currencies and crude overview
MSCI Asia Pacific Index is recovering from its yesterdays’ fall and is up by 0.4 percent.
S&P 500 futures are on the rise - +0.1% gain for the Index.
Nasdaq has slid down by 0.89 percent 7 051,98 USD is the price for today.
Dollar seems to be doing better the second day in a row. Yen is falling against it with the price of 109.61 yen per dollar – the decline is 0.3 percent.
Euro is with the 0.2 percent gain and the price of $1.2288.
Silver is traded at the point of $16.72 per ounce and gold is $1.313.55 – a 0.4 percent lower than yesterday.
WTI doesn’t seem to have found the support it needs in order to pick itself up and hence the price is sinking: $61.77 per barrel.
