Connect with us

Markets

Most Asian Stocks Rise After Crude Rally as Japan Leads Advance

Published

on

Asian stocks

Most Asian stocks rose, following U.S. shares higher, as Japanese shares climbed and a turnaround in oil boosted energy companies.

About three shares climbed for each that fell on the MSCI Asia Pacific Index, which traded little changed at 119.63 as of 9:05 a.m. in Tokyo. Energy and material shares led gains, while consumer companies dropped. Volatility over the past 30 days on the regional benchmark index remains near the highest level in four years amid tumbling oil prices and concern over the slowdown in China’s economy. U.S. crude erased a slump of more than 4 percent Wednesday to close above $32 a barrel.

“You need to see some settling in the oil price and maybe we’re getting there on that one,” said Shane Oliver, head of investment strategy in Sydney at AMP Capital Investors Ltd., which oversees about $120 billion. “That could be ticked off as a positive but we still need to see more evidence that central banks are doing what they can to stabilize the situation. The volatility reflects the range of views out there and the uncertainty that surrounds the economic outlook.”

Officials from the world’s biggest economies meet in Shanghai from Friday to discuss the recent turmoil in Chinese markets and ways to bolster a safety net for the global financial system, according to people familiar with the agenda for the talks. U.S. Treasury Secretary Jacob J. Lew downplayed expectations for “crisis response” in a Bloomberg TV interview, saying the world was currently in a “non-crisis environment.” AMP’s Oliver agreed.

“It would be nice to see some collective statement from the major central banks that they’re aware of the problems and that they can’t operate in isolation in this environment,” Oliver said. “I don’t hold out a lot of hope. We’re not in enough of a crisis yet to see a crisis response.”

Regional Gauges

Japan’s Topix index rose 1 percent, with construction companies leading gains. Japan is considering an extra budget worth about 5 trillion yen ($45 billion), TV Asahi reported, citing several unidentified ruling party officials.

South Korea’s Kospi index advanced 0.6 percent and Australia’s S&P/ASX 200 Index lost 0.2 percent. New Zealand’s S&P/NZX 50 Index slid 0.1 percent.

Futures on Hong Kong’s Hang Seng Index fell 1.4 percent in most recent trading, while contracts on the Hang Seng China Enterprises Index retreated 1.5 percent. Futures on the FTSE China A50 Index dropped 0.2 percent.

E-mini contracts on the Standard & Poor’s 500 Index gained 0.4 percent. The underlying gauge rose 0.4 percent in New York, reversing a drop of as much as 1.6 percent as oil and gas producers climbed. The Stoxx Europe 600 Index fell 2.3 percent.

Chesapeake Energy Corp. surged 23 percent in New York after saying it will pay off the remainder of a half-billion dollar debt that’s coming due in three weeks with proceeds from asset sales that were twice as large as the company expected.

Bloomberg

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Continue Reading
Comments

Energy

Unlocking Investments into Africa’s Renewable Energy Market

Published

on

green energy - Investors King

The African Energy Guarantee Facility (AEGF) is launching a virtual roadshow of free webinars allowing a deeper understanding of risk issues for renewable energy projects on the continent, and conversations around risk mitigation solutions. The first webinar will take place on Thursday, 23 September from 14:30-16:00 hrs. EAT. 

The session will be oriented on how to get more energy projects from the drawing board to the grid. While the energy demand in African economies is expected to nearly double by 2040, and although the potential for renewable energy is 1,000 times larger than the demand, only 2GW out of almost 180GW of this new renewable power were added on the African continent.

Clearly not good enough! To improve the situation within the next two decades, new solutions need to be implemented urgently. De-risking and promoting private sector investments will play a crucial part of it.

In this 90-min interactive session, AEGF partners: the European Investment Bank (EIB), KfW Development Bank, Munich Re and the African Trade Insurance Agency (ATI) will share their experience and provide valuable insights on how they were able to come together and design practical solutions for investors and financiers of green energy projects in Africa aligned with SDG7 objectives.

Across Africa, the complexity of renewable energy projects and their long tenors hold back crucial energy investment. Tailored to the specific needs and risk profiles of sustain­able energy projects, AEGF will tackle the investment challenge by providing underwriting expertise and capacity tailored to market needs.

The AEGF will significantly boost private investment in sustainable energy projects, both expanding access to clean energy and contribute to achieving UN Sustainable Development Goals. The scheme supports new private sector investment in eligible renewable energy, energy efficiency and energy access projects in sub-Saharan Africa.

Continue Reading

Energy

Shell Signs Agreement To Sell Permian Interest For $9.5B to ConocoPhillips

Published

on

Shell profit drops 44 percent

Shell Enterprises LLC, a subsidiary of Royal Dutch Shell plc, has reached an agreement for the sale of its Permian business to ConocoPhillips, a leading shales developer in the basin, for $9.5 billion in cash. The transaction will transfer all of Shell’s interest in the Permian to ConocoPhillips, subject to regulatory approvals.

“After reviewing multiple strategies and portfolio options for our Permian assets, this transaction with ConocoPhillips emerged as a very compelling value proposition,” said Wael Sawan, Upstream Director. “This decision once again reflects our focus on value over volumes as well as disciplined stewardship of capital. This transaction, made possible by the Permian team’s outstanding operational performance, provides excellent value to our shareholders through accelerating cash delivery and additional distributions.”

Shell’s Upstream business plays a critical role in the Powering Progress strategy through a more focused, competitive and resilient portfolio that provides the energy the world needs today whilst funding shareholder distributions as well as the energy transition.

The cash proceeds from this transaction will be used to fund $7 billion in additional shareholder distributions after closing, with the remainder used for further strengthening of the balance sheet. These distributions will be in addition to our shareholder distributions in the range of 20-30 percent of cash flow from operations. The effective date of the transaction is July 1, 2021 with closing expected in Q4 2021.

Shell has been providing energy to U.S. customers for more than 100 years and plans to remain an energy leader in the country for decades to come.

Continue Reading

Crude Oil

Oil Gains 1 Percent on Possible Tight Supply 

Published

on

Oil prices - Investors King

Oil prices rose on Tuesday as analysts pointed to signs of U.S. supply tightness, ending days of losses as global markets remain haunted by the potential impact on China’s economy of a crisis at heavily indebted property group China Evergrande.

Brent crude gained 95 cents or 1.3% to $74.87 a barrel by 0645 GMT, having fallen by almost 2% on Monday. The contract for West Texas Intermediate (WTI) , which expires later on Tuesday, was up 91 cents or 1.3% at $71.20 after dropping 2.3% in the previous session.

Global utilities are switching to fuel oil due to rising gas and coal prices, and lingering outages from the Gulf of Mexico after Hurricane Ada that imply less supply is available, ANZ analysts said.

“While slowing Chinese economic growth and uncertainty around the (U.S.) Fed’s tapering timetable weighed on market sentiment, other developments still point to higher oil prices,” ANZ Research said in a note.

Still, investors across financial assets have been rocked by the fallout from heavily indebted Evergrande (3333.HK) and the threat of a wider market shakeout in the longer term.

“Evergrande’s woes are threatening the outlook for the world’s second-largest economy and making some investors question China’s growth outlook and whether it is safe to invest there,” said Edward Moya, senior market analyst at OANDA.

While that view of the state of China’s economy is weighing on markets, the U.S. Federal Reserve is also expected to start tightening monetary policy – likely to make investors warier of riskier assets such as oil.

Continue Reading




Advertisement
Advertisement
Advertisement

Trending