Day: September 7, 2021

Oil prices were mixed early Tuesday after traders cashed in on lower oil sales, and following the release of positive economic data from China although demand worries linger after Saudi Arabia cut crude prices for Asian customers.

International benchmark Brent crude was trading at $72.44 per barrel at 0719 GMT for a 0.30% gain after closing Monday at $72.22 a barrel.

American benchmark West Texas Intermediate (WTI) traded at $69.03 a barrel at the same time with a 0.38% decrease after ending the previous session at $69.29 per barrel.

The uptick in oil prices was mainly boosted by mild bullish sentiment on the market where investors quickly cashed in on lower prices.

A strong rebound in China’s imports and exports in August, despite disruptions caused by the spread of the coronavirus delta variant, also lent support to the upward price trend.

Exports in August rose by 25.6% over a year earlier to $294.3 billion, up from an 18.9% increase in July, customs data showed Tuesday. Imports in August also rose by 33.1% to $236 billion, up from 28.7% in July.

The supply disruptions in the US are still ongoing in the aftermath of Hurricane Ida, putting upward pressure on prices.

According to the US Bureau of Safety and Environmental Enforcement, 83.9% of the current oil production and 80.8% of the natural gas production in the Gulf of Mexico have been shut in.

However, demand woes have increased after Saudi Arabia’s state oil company on Sunday announced it would slash crude oil prices to its Asian customers in October.

The oil-rich country will lower its prices of Arab Light crude for its Asian customers by $1.30. Investors interpreted the move as falling demand in Asia, as the region has also been battling with a recent Delta outbreak.

Source: Anadolu Agency

Major stock markets in Asia closed Tuesday in the positive territory as China’s unexpected surge of foreign trade in August eased fears about impact of Delta variant of coronavirus on its economy.

Investors also awaited decisions from major central banks on both interest rates and stimulus.

The Asia Dow, which includes blue-chip companies in the region, gained 27.5 points, or 0.68%, to close at 4,042.

China’s Shanghai stock exchange posted a rise of 54.7 points, or 1.51%, to 3,676 points.

Chinese foreign trade rose sharply in August, thanks to strong global demand, according to the General Administration of Customs on Tuesday. The country’s exports jumped 25.6% year-on-year in August while imports surged 33.1%, both were above market forecast.

Tokyo’s Nikkei 225 stock exchange climbed by 256 points, or 0.86%, to 29,916.

The Hang Seng, the benchmark for blue-chip stocks trading on the Hong Kong stock exchange, went up 190 points, or 0.73%, to 26,353.

Source: Anadolu Agency

Russia is not ready to recognize Bitcoin as an official payment means, Kremlin spokesman Dmitry Peskov said on Tuesday.

Equating “quasi” (pseudo) currencies with traditional monetary resources cannot cause anything but harm to the financial and economic system, Peskov told reporters in Moscow.

“Russia is definitely not ready for such steps, and so far there is not the slightest reason to take such steps. Equating such quasi-currencies with monetary assets cannot cause anything but harm to the financial and economic system, if we are talking about the full recognition (of Bitcoin) as a means of payment,” he said.

Bitcoin is the most famous digital or cryptocurrency invented in 2008 by an unknown person or group of people using the name “Satoshi Nakamoto.”

Source: Anadolu Agency

The European Commission adopted on Tuesday a green bond framework to finance a green project of the bloc’s post-pandemic recovery fund.

“It is a framework to issue up to €250 billion ($297 billion) in green bonds, which is around 30% the NextGenerationEU funds,” EU Commissioner for Budget Johannes Hahn told reporters.

“It will reinforce the investments, innovation and strategic autonomy of Europe’s economy, making (the European Union) the largest green bond issuer at the global market,” he added.

The green bonds will finance the green projects of the bloc’s post-coronavirus recovery and resilience fund.

The rules of the recovery instrument require member states to dedicate at least 37% of investments to foster green transition and climate neutrality.

The European Commission is expected to issue the first bonds as of October and to continue with the program until 2026.

In the upcoming five years, the EU executive body will borrow up to €800 billion at financial markets to provide loans and grants for member states to help relaunch the bloc’s economy after the coronavirus crisis.

After a year-long deadlock in negotiations, EU leaders and the European Parliament reached last December an agreement on the bloc’s budget of €1.8 trillion for the period of 2021-27, which includes a €750 billion temporary recovery instrument, the Next Generation EU, and the ordinary long-term budget.

In February, a special act on the Recovery and Resilience Facility, part of the Next Generation EU, was adopted by the European Parliament and member states to authorize the European Commission to raise money at the financial markets.

Source: Anadolu Agency

Bitcoin became legal tender for a country for the first time in history in El Salvador on Tuesday.

The digital currency is the official currency of El Salvador alongside the US dollar, a move that is sure to drawn attention to the opportunities and risks associated with cryptocurrencies.

Just before midnight local time on Monday, El Salvador’s President Nayib Bukele, announced that the country was about to “make history” after confirming that the government bought 400 Bitcoins, the equivalent of around $21 million at current prices.

The government created a $150 million fund to back conversions of bitcoin to US dollars and 200 ATMs have been installed throughout the country to operate with Bitcoins and dollars. Salvadorans will be able to download “Chivo,” the government’s digital wallet to receive $30 in Bitcoin.

The government said the measure will benefit those living abroad by saving millions of dollars in commissions on remittances given such transactions account for more than 23% of the country’s gross domestic product, according to figures from the World Bank.

But polls show most Salvadorans are skeptical about Bitcoin and have concerns about how it will affect their earnings. A recent survey revealed that seven out of 10 Salvadorans said that they “disagree or strongly disagree” with the use of Bitcoin and that they prefer the dollar.

International bodies such as the World Bank and the International Monetary Fund have also warned against the adoption of the cryptocurrency saying it could increase risks for financial institutions.

Early Tuesday, problems were reported on the platform because of the number of people trying to log in.

“For a few moments @chivowallet will not work, we have disconnected it while we increase the capacity,” Bukele said on Twitter.

Some critics say that with the change, Bukele seeks to distract from an authoritarian regime.

The right-wing leader, who has been in power since 2019, has been heavily criticized for making arbitrary decisions.

In May, he fired five Supreme Court justices after the Salvadoran judiciary ruled that the president’s use of emergency powers during the pandemic was unconstitutional. Bukele defended the firings as “getting our house in order.”

The new Supreme Court last week gave the green light for Bukele to run for reelection in 2024.

The 40-year-old president, who recent polls indicate is backed by more than 80% of Salvadorans, said Bitcoin could help boost economic development and employment.

Source: Anadolu Agency