Saudi Aramco with huge quarterly profits
Net income of Saudi Aramco saw surge in profits to $48.4 billion in Q2, which is up from $25.5 billion YoY. The free cash flow rose by 53% as well to $34.6 billion. Aramco has posted the highest profits since it went public in 2019, all connected to rise in oil prices and increasing demand.
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The housing sector is witnessing a dramatic slowdown and rising rates. As a result, lumber futures fell by 7% to $450, a level last seen in September 2021 and down nearly 70% from their March peak. In addition, August saw the seventh straight month of existing house sales declines, reaching their lowest level since May 2020.
On Wednesday, EU natural gas increased to over €200/MWh after falling by 50% in the last month to 170€/MWh. This might be because traders try to evaluate the forecast for gas supplies in winter. At the same time, President Putin signaled an expansion of the war in Ukraine by announcing a partial military mobilization in Russia.
Following a 9% fall last week—the third straight week of declines—EU natural gas prices dropped to €170 per megawatt hour, down 50% from its peak. Due to increased gas inventories and a high supply, natural gas prices have been on a downward trend since reaching record high levels in August.
EU natural gas futures are approaching their third straight week of declines after dropping 12% to 187 € per megawatt hour on Friday. Investors keep an eye on whether the European Commission’s intervention plan will lower the skyrocketing energy prices.
Just like silver, gold is also showing signs of strength in the current market conditions. Amid the growing expectation of inflation peak and its possible retracement, gold is moving higher and attacking $1735 mark. Today’s inflation data release can have a significant impact on the price, which means that volatility can be expected.
Silver futures suddenly jumped 5% above the $19 per ounce level, which is the highest in three weeks. Investors eye bullion assets amid a significant retreat for the US dollar and continue to assess the extent to which the Federal Reserve will tighten policy, which may send Silver and other metals higher.
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China continued its lockdowns that appeared to hurt its economy as the rest of the world said goodbye to COVID. The nation’s real estate market and stock market suffered as a result. Currently, the government has directed state banks to buy equities to stop excessive selling.
Interpol issued a red notice on Do Kwon, the co-founder of Terraform Labs. Do Kwon insists that he is not hiding, but it is unclear where he is because Singaporean authorities claim he is not in the country.
The Nikkei 225 Index dropped 2.66% to 26,430, finishing at its lowest point in more than two months and following the lead of a downbeat Wall Street market. Increased inflationary pressures, increasing interest rates, and concerns of a global recession continue to put pressure on risk assets.
As a result of the Fed’s aggressive rate hikes, Serbian Dinar hits an all-time low against the US Dollar. USD/RSD rose 0.62% to 121.6800 from 120.9300 in the previous trading session.
Russia took the first step toward legalizing crypto, and it benefits everyone. Kommersant reported that the country’s Deputy Finance Minister Alexei Moiseev and the Bank of Russia have settled on using cryptocurrency for cross-border payments. Locals are permitted to process international payments using crypto.
Rate hikes from all central banks worldwide are pushing markets lower. In the last week, DAX 40 fell by 4%, S&P 500 by 6%, and Dow Jones by 5%. Commodities followed, with WTI Crude Oil down 8% and natural gas down 11% for the week.