China's annual crude oil imports slid | 21 1月 2022


#SP500:


Lately we’ve seen two things swirling that some traders think could hurt them down the road. First up, the 10-year Treasury yield has soared to start this year. But is this bad for stock market? Higher yields usually mean the economy is growing, not slowing. Should the 10-year continue to move higher, this could actually support a higher trending bull market, much different than what most think. Second up, many are worried about the Federal Reserve Bank hiking interest rates for the first time since December 2015. But Fed rate hikes by themselves don’t mean the bull market is approaching an end. In fact, a year after the first hike in the previous 8 cycles saw the S&P 500 Index higher a year later every single time.


Trading recommendation: Buy 4630 and take profit 4700.



#WTI:


China's annual crude oil imports slid 5.4% in 2021, dropping for the first time since 2001, as Beijing clamped down on the refining sector to curb excess domestic fuel production while refiners drew down massive inventories. China has been the global oil demand driver for the last decade, accounting for 44% of worldwide growth in oil imports since 2015, when Beijing started issuing import quotas to independent refiners. Rising crude prices, a 'backwardated' market structure and the government's overall strategy to cool the hype in the commodities market worked together in driving down last year's crude oil imports.


Trading recommendation: Sell 85.50 and take profit 83.44



#Vale:


China's iron ore imports dropped in 2021, down 4.3% from the previous year's record annual high, as steel production curbs imposed to combat pollution dented demand and pulled prices of the key steelmaking material off historical highs. The world's top iron ore consumer brought in 1.12 billion tons of the commodity last year, compared with 1.17 billion tones imported in 2020, data from the General Administration showed. Imports started to contract as authorities urged steel mills to cut production to meet an annual target of keeping crude steel output flat. This is a negative signal for Vale, which is one of the largest iron ore producers in the world.


Trading recommendation: Sell 15.65 and take profit 14.99.

 

David Johnson
Analyst of «FreshForex» company
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