Archives of “September 2020” month

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UK bill may have ‘huge negative consequences’, says EU diplomat

  
  Analysis

Bloomberg citing remarks by a EU diplomat on the matter

  • UK must urgently clarify its plans
The internal market bill is scheduled to be released some time around 1130 GMT (could be earlier or later depending on how long PMQs last) today.
The big issue remains on the interpretation of the bill as to whether or not it will breach international laws and in effect, breach the Brexit withdrawal agreement.
The UK point of view remains that it isn’t going to be the case and there is still a heavy dispute internally over that. But either way, I don’t see how the EU can be happy about any of this and surely it will prompt more negative rhetoric from their side.

Nikkei 225 closes lower by 1.04% at 23,032.54

  
  Analysis

Asian equities follow Wall Street lower

Nikkei 09-09
But the slump could’ve been worse as stocks recover a little from the lows posted earlier. The Hang Seng is down 0.8% while the Shanghai Composite is down 1.1% currently.
The rout in US equities yesterday is still the main talking point in the market, though there are some calmer tones observed in US futures going into European trading.
S&P 500 futures are up ~0.3% while Nasdaq futures are up ~0.9%, though the risk mood is still arguably more fragile all things considered.
Major currencies are also keeping more cautious with little change and mixed tones across dollar pairs observed so far to start the day.

Reasons for the sliding oil price pile up

  
Analysis, Crude
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  • Crude oil prices collapsed, with Brent crude closing under USD40/bbl for the first time since June
  • risk-off tone across markets 
  • stronger USD headwinds
  • tone was set earlier this week after Saudi Aramco cut its prices to Asian refiners, suggesting demand is weak
  • Bloomberg survey showed that only four out of ten Asian refiners would be subsequently trying to buy more Saudi crude
  • Abu Dhabi National Oil Co also cut its prices on Tuesday
  • US refiners are also cutting output, as the summer driving season ends and inventories remain high
  • rising COVID-19 infections across the globe doesn’t bode well for demand in the short term
  • futures markets widening in the contango for both Brent and WTI to their widest levels since May
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