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Old 15-11-2021, 20:05
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KostiaFM KostiaFM is offline
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Default Re: Daily Economic news by ForexMart

November 15. Slowing GDP growth in China could lead to a global financial crisis

The US authorities continue to monitor the development of the real estate crisis in China caused by the default of the developer China Evergrande Group. US Treasury Secretary Janet Yellen said that the consequences of the debt crisis in China and the slowdown in the country's economic growth could trigger a global financial crisis.

Yellen also noted that real estate is a very important sector of the Chinese economy, which accounts for about 30% of demand. And the contraction of the Chinese economy will hit many countries with trade ties with China.

It is worth noting that not only China Evergrande is struggling with a high level of debt and a potential default, but the size of the debt itself is impressive – $300 billion. To date, the company has managed to pay several overdue coupons on time, preventing default, but the situation continues to be tense.

November 12. The oil market is stable after the release of the monthly OPEC report

Oil at the end of the week continues to fluctuate in the range of $81.40-82.50 per barrel. The current Brent quote is $82.20.

The situation in the United States remains in the focus of attention of market participants, where pressure on President Joe Biden is increasing. Many, including representatives of his own party, expect the new president to solve the problem of high prices, since the inflation rate in the United States was the highest in the last 30 years.

In addition, investors are analyzing OPEC's monthly report, which contained unfavorable estimates for the oil market: the organization slightly lowered forecasts for oil demand growth in 2021 and 2022. First of all, the OPEC secretariat lowered its estimate of global oil demand in 2021 in North America and India, despite the fact that the recent figures of these countries significantly exceeded the level of a year ago.

At the same time, OPEC expects an increase in demand in China, which also came as a surprise to market participants, given the restrictions on flights in force in the country against the background of the growing number of infected Covid–19.

The non-OPEC supply forecast for 2021 has not been changed, and for 2022 it has been slightly reduced.
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