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Tag Archives: South Korea

IMO 2020: Are Asian refiners ready?

Ahead of the S&P Global Platts Asia Pacific Petroleum Conference (APPEC 2019), Insight presents a series of articles exploring aspects of the global trade in crude oil and refined products. Here, Kang Wu and JY Lim of S&P Global Platts Analytics analyze the challenges and opportunities facing Asian refiners ahead of the International Maritime Organization’s switch to a lower sulfur fuel standard. The refining industry is on the brink of a major shift in the demand structure of bunker...

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Mid-Course Correction Sends Greenback Higher

Overview:  The Federal Reserve delivered the first rate cut since the Great Financial Crisis but couched it in terms of a mid-course correction rather than the start of a larger easing cycle.  By doing so, Fed chief Powell cast the cut in less dovish terms than the market expected and the reaction function of the market has been clear.  The US dollar has advanced against nearly all the world's currencies.  The greenback broke through key levels that had been holding capping it, like...

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Asian LNG landscape shifts as emerging markets liberalize

Demand growth in the global LNG market will not only hinge on new infrastructure and growing economies. It will also require an influx of additional buyers entering the market in search of clean, reliable and affordable energy. Nowhere is this more true than in Asia where steps have already been made to open up markets, add new participants and promote price discovery. However, demand prospects are very different in the established Northeast Asian market compared with the emerging economies...

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ECB Takes Center Stage

Overview:   The euro remains stuck in its trough below $1.1150 ahead of the ECB meeting.  The US dollar is firmer against most of the major currencies.  The yen continues to resist the draw of the greenback.  Most emerging market currencies are lower.  The Turkish lira is weaker ahead of its central bank meeting, which is expected to deliver a large cut (~250 bp).  The South Korean won eased after North Korea fired two "projectiles" and the Kospi Index bucked the regional trend of...

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Greenback is Mostly Firmer to Start New Week, while the Euro is Pinned near $1.12

Overview:  What promises to be an eventful two weeks has begun quietly.  The ECB, Fed, BOJ, and BOE will meet over the next fortnight. The central banks of Turkey and Russia meet this week and are expected to cut rates.  The UK will have a new Prime Minister.  The UK-Iranian seized each other ships, and the UK seeks a resolution.  Japan may remove South Korea from its preferred trading partners.  The US House of Representatives is set to go on the summer recess with the debt ceiling...

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Dollar on Back Foot as Equities Slide

Overview:  Profit-taking continues to weigh on global equities earnings concerns saw the biggest drop in the S&P 500 in three weeks.  The MSCI Asia Pacific Index fell for the fourth consecutive session.  The Nikkei gapped lower for the second straight session and has now retraced half of the gains scored since early June.  The Shanghai Composite is at its lowest level in a month.  Led by information technology, industrials, and energy, the Dow Jones Stoxx 600 is off by around 0.5%...

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No Turn Around Tuesday, as Equities Extend Losses and the Greenback Remains Firm

Overview:  Global equity benchmarks are headed for their third consecutive loss today as caution prevails at the start of Q3 after a strong first half.  Ten-year benchmark yields are edging higher after a soft start in Asia.  Italian bonds continue to outperform.  Greek bonds have been set back as the new government reiterated its commitment to ease fiscal commitments as if Tsipras did not try, and got a similar rebuff.  The dollar is firmer against the major currencies and most...

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The Asian PMI Picture of A Dollar Shortage

It’s actually one of the few areas that has been studied in mainstream Economics. The links between global financial upset and broader economic consequences are pretty well understood. Trade gets shut down, therefore economies which are highly dependent upon the exchange of goods experience the effects first. When you see these bellwethers under pressure, it’s a bad sign. The mysterious part is where these financial problems might come from. It’s one of the more uncomfortable aspects of the...

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The World may Look Different Come Monday

Overview:  Quarter-end positioning seems to dominate today's activity.  The outcome of bilateral talks at the G20 gathering partly reflects the influence of the US President who eschews multilateral efforts as a hindrance to its sovereignty.  Equities in Asia Pacific slipped today but held on to modest gains for the week.  The MSCI Asia Pacific Index rose every week this month for the first time since January 2018.  The Dow Jones Stoxx 600 is little changed and is off a little more than...

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US Penchant for Tariffs Keeps Investors on Edge

Overview:  The weekend failed to break the grip of investor worries that is driving stocks and yields lower.  The US Administration's penchant for tariffs is not simply aimed at China, where there is some sympathy, but the move against Mexico, dropping special privileges for India, and apparently, had considered tariffs on Australia.  At the same time, the threat of 25% tariff on auto imports.  Meanwhile, the recent data, including today's PMI readings, show a world economy struggling...

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