English
Market News Financial breakfast on May 27: OPEC+ refused to increase production significantly, oil prices rose more than 3%, the dollar weakened, and gold prices were close to the 1850 mark
Financial breakfast on May 27: OPEC+ refused to increase production significantly, oil prices rose more than 3%, the dollar weakened, and gold prices were close to the 1850 mark
Overnight, U.S. retailers released optimistic profit forecasts, and U.S. Wall Street stocks closed sharply higher on Thursday, causing gold prices to fall to around the 1840 mark for a while, but as the market’s worries about the Fed’s excessive interest rate hikes cooled, the dollar fell back to near a one-month low , the decline in gold prices narrowed and rose to above the 1850 mark. International oil prices rose 3% on Thursday to hit a new high in more than a week. Before the summer driving season in the United States, demand is expected to rebound, supply is tight, and OPEC is only willing to increase production slightly. The ongoing war between Russia and Ukraine has jointly provided upward momentum for oil prices.
2022-05-27
8346
At the beginning of the Asian market on Friday (May 27), spot gold fluctuated slightly, and is currently above the 1850 mark. Overnight, U.S. retailers released optimistic profit forecasts, and U.S. Wall Street stocks closed sharply higher on Thursday, causing gold prices to fall to around the 1840 mark for a time, but as the market’s worries about the Fed’s excessive interest rate hikes cooled, the dollar fell back to near a one-month low , the decline in gold prices narrowed and rose to above the 1850 mark. International oil prices rose 3% on Thursday, hitting a new high in more than a week. Before the arrival of the summer driving season in the United States, demand is expected to pick up, supply is tight, and OPEC is only willing to increase production slightly. The ongoing war between Russia and Ukraine has jointly provided upward momentum for oil prices.
In the commodity close, Brent crude futures rose $3.37, or 3.0%, to settle at $117.40 a barrel, while U.S. crude futures rose $3.76, or 3.4%, to settle at $114.09 a barrel. U.S. gold futures settled up 0.07% at $1,847.6.
In terms of U.S. stocks closing, the Dow Jones Industrial Average rose 516.91 points to close at 32,637.19 points, or 1.61%; the S&P 500 rose 79.11 points, or 1.99%, to close at 4057.84 points; the Nasdaq rose 305.91 points, or 2.68% , reported 11740.65 points.
U.S. Wall Street stocks ended sharply higher on Thursday, as retailers released upbeat profit forecasts and easing worries about an overly aggressive Fed rate hike boosted investor buying sentiment.
All three major U.S. stock indexes posted strong gains, with economically sensitive consumer discretionary and chip stocks outperforming the broader market. The tech-heavy Nasdaq was the biggest gainer, jumping nearly 2.7 percent, boosted by Apple, Tesla and Amazon.
All three major indexes were on track to end their longest weekly losing streak in decades, with the S&P tumbling 14.1%, just one step away from confirming a bear market.
This week, all three major stock indexes are on track for their biggest weekly gain since mid-March.
"The first-quarter earnings season is largely over, better than expected, coupled with the Fed's indications of early tightening and hints that it may pause further growth later in the fall," said Sam Stovall, chief investment strategist at CFRA Research. interest rates, all of which give investors reason to be optimistic.”
Upbeat forecasts from retailers on Thursday appeared to offset gloomy warnings from peers in recent weeks. Macy's surged 19.3% after raising its annual profit forecast.
Discount chains Dollar General and Dollar Tree jumped 13.7% and 21.9%, respectively, after both raised their annual revenue forecasts, a sign that consumers are buying lower-priced items amid multi-decade high inflation.
Minutes from the U.S. Federal Open Market Committee's (FOMC) latest monetary policy meeting calmed fears that the U.S. central bank may become more hawkish, which has fueled market volatility in recent weeks.
"There has been a 65% increase in single-day gains or losses of more than 1% compared to the average since World War II," Stovall said.
"If the Fed is too aggressive, they will curb inflation, but they will also curb growth," he added. "Like in winter, tap the brakes, not slam, to stay in control and avoid getting out of control."
Economic data on Thursday, including initial jobless claims, pending home sales and gross domestic product (GDP), were mixed, suggesting the economy was showing just enough weakness to prompt the Fed to turn dovish before the fall.
The Dow Jones Industrial Average rose 516.91 points to close at 32637.19 points, or 1.61%; the S&P 500 rose 79.11 points, or 1.99%, to close at 4057.84 points; the Nasdaq rose 305.91 points, or 2.68%, to 11740.65 points .
Gold prices edged down 0.15% on Thursday. They fell to around the 1840 mark during the session and closed at around the 1850 mark. The Federal Reserve's aggressive monetary policy tightening plan weakened the appeal of gold, and the stock market rebound added to the pressure. But then the market's concerns about the Fed's excessive interest rate hikes cooled, and the dollar fell near a one-month low, attracting bargain-hunting buying to support gold prices. U.S. gold futures settled up 0.07% at $1,847.6.
"The minutes didn't change anything," said Bart Melek, head of commodity strategy at TD Securities. "The market is starting to realize that the Fed will continue to take strong measures to control inflation. The tightening story isn't over no matter how you imagine it, and It is very safe to say that the interest rate environment will continue to become more restrictive.”
Gold prices were partly under pressure as U.S. stock indexes stabilized this week, Kitco senior analyst Jim Wycoff said in a note.
The number of Americans filing for unemployment benefits fell more than expected last week as the labor market remained tight. Despite rising interest rates and tighter financial conditions, job demand remains strong.
The dollar hovered near a one-month low, limiting losses in gold prices, while U.S. 10-year Treasury yields hit their lowest since April.
Oil prices climbed about 3 percent on Thursday to a two-month high on signs of tight supplies ahead of the U.S. summer driving season and a dispute between the European Union and Hungary over an embargo on Russian oil.
Traders also noted that oil prices rose along with stocks and the dollar weakened against a basket of currencies, making crude oil cheaper to buy in other currencies.
Brent crude futures rose $3.37, or 3.0%, to settle at $117.40 a barrel, while U.S. crude futures gained $3.76, or 3.4%, to settle at $114.09 a barrel.
Brent closed at its highest level since March 25 after six straight days of gains. U.S. crude closed at its highest level since May 16.
"The crude oil market will remain tight as the start of the summer driving season will maintain the trend of declining U.S. inventories, and so crude oil prices rose," said Edward Moya, senior market analyst at data and analytics firm OANDA.
Oil prices were supported by data on Wednesday showing that U.S. crude inventories fell sharply last week.
European Council President Michel said he was confident a deal could be reached before the next Council meeting on May 30.
Hungary remains a stumbling block as EU sanctions require unanimous support. Hungary is asking for about 750 million euros ($800 million) to upgrade its refinery and expand a pipeline from Croatia.
Even without a formal ban, Russia's oil supplies have been greatly reduced as buyers and trading firms shun suppliers in the country.
RIA Novak quoted Deputy Prime Minister Novak as saying that Russia's oil production should fall to 480-500 million tons this year from 524 million tons in 2021.
Six OPEC+ sources said the coalition would stick to the oil output deal reached last year at its June 2 meeting and increase output by 432,000 bpd in July, ignoring Western demands to increase output faster to ease a sharp rise in oil prices. call. OPEC+ is an alliance of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia.
The dollar fell 0.33 percent on Thursday to near a near one-month low at 101.77, as markets pondered whether the Federal Reserve could slow or even pause its tightening cycle in the second half of the year, which would dent the greenback's safe-haven appeal.
Ed Moya, senior market analyst at Oanda, said, "The market has become more optimistic that the Fed will not tighten monetary policy too aggressively, and the sell-off we have seen in some risk assets may be overdone, especially equities."
"That's driving a slight uptick in risk assets, which is very good for risk trades, which is actually bad for the dollar," he said.
The dollar index hit a near 20-year high above 105 earlier this month, but signs that the Fed's aggressive action may already be slowing economic growth prompted traders to scale back bets on tightening and U.S. Treasury yields also Down from multi-year highs.
"While this is not the base view of our economics team...we think the Fed will likely think that reaching a rate level of 1.75%-2% allows for policy normalization and then has an opportunity to pause and assess its impact on employment and inflation," JPMorgan strategists said in a client note.
Implied yields on the June 2023 Eurodollar futures contract — where the market broadly expects rates to be at that point — fell by about 80 basis points this month.
"The dollar is range-bound right now," said Boris Schlossberg, managing director of foreign exchange strategy at BK Asset Management.
Data on Thursday confirmed that the U.S. economy shrank in the first quarter, hurt by a record trade deficit and a slightly slower pace of inventory builds than in the fourth quarter. A separate report showed that the number of Americans filing for unemployment benefits fell last week, a sign of continued labor market tension.
On Thursday, euro-dollar was up 0.4% at 1.0731 and dollar-yen was down 0.15% at 127.07. Risk-related currencies fluctuated and rose slightly. The Australian dollar rose 0.14% against the US dollar to close at 0.7096, and the New Zealand dollar rose 0.09% against the US dollar to close at 0.6478.
Sterling rose to a three-week high of $1.26165 against the dollar as Britain announced a 25 percent windfall tax on oil and gas producers' profits while offering a 15 billion pound ($18.9 billion) package for households struggling to pay soaring energy bills support. GBP/USD was last up 0.21% at 1.2602.
【U.S. labor market remains strong, but corporate profits decline across the board makes economic outlook uncertain】
The number of Americans filing for unemployment benefits fell more than expected last week as the labor market remained tight. Despite rising interest rates and tighter financial conditions, job demand remains strong. Initial jobless claims fell by a seasonally adjusted 8,000 to 210,000 for the week ended May 21, the Labor Department said. But the outlook for the economy remains unclear. The Commerce Department released a report showing that companies’ current production profits fell by $66.4 billion, or 2.3 percent, in the first quarter, the first decline in nearly two years. The Commerce Department also announced that the U.S. first-quarter gross domestic product (GDP) fell by a revised 1.5% year-on-year rate, compared with a 1.4% decline in the initial value.
[OPEC+ is expected to continue to increase production slightly in July, ignoring calls from the West to speed up production]
Six OPEC+ sources said the coalition would stick to the oil output deal reached last year at its June 2 meeting and increase output by 432,000 bpd in July, ignoring Western demands to increase output faster to ease a sharp rise in oil prices. call. OPEC+ members insist that the oil market is balanced and that the recent price rise has nothing to do with fundamentals.
[UK monkeypox cases rise to 90]
The UK Health Security Agency said on May 26 local time that the number of monkeypox cases in the UK has increased to 90. Among them, there were 8 new cases of monkeypox in England, and a total of 85 cases of monkeypox; 3 cases of monkeypox in Scotland, 1 in Wales and 1 in Northern Ireland.
[Russian troops make progress in eastern Ukraine, close to encircling the Ukrainian army]
A Ukrainian official said advancing Russian forces came close to encircling Ukrainian forces in the east, at one point capturing positions on a road outside two key Ukrainian-held cities, before being pushed back. Thousands of soldiers are attacking from three sides in an attempt to surround Ukrainian troops in Severo-Donetsk and Lisichansk. If the two cities, which straddle the North Donets River, fall, almost all of Luhansk's Donbas region will be under Russian control. Western military analysts see the battle for the two cities as a potential turning point in the war, as Russia has redefined its main goal as occupying the east.
[Ukraine has acquired advanced long-range weapons, and the United States and Ukraine discuss the risk of escalating the situation by hitting the Russian hinterland]
Washington has discussed with Kyiv the danger of escalation if it strikes the Russian heartland, U.S. diplomats told Reuters, as the United States and its allies provide Ukraine with increasingly sophisticated weapons. These highly sensitive, closed-door discussions, which had never been reported before, did not impose clear geographic restrictions on the use of weapons supplied to the Ukrainian army. But three U.S. officials and diplomatic sources said the talks were aimed at reaching a consensus on the risk of escalation.
[Deputy Defense Minister of Ukraine: The fighting in the Donbas region has reached the highest intensity]
According to Russian media reports, on the evening of the 26th local time (GMT+8 in the early morning of the 27th), Arestovich, an adviser to the Chief of the Office of the President of Ukraine, confirmed that the Ukrainian army had lost the strategic location of Donetsk, Bonliman. The military administrator of Luhansk confirmed that the Russian army has occupied 95% of the territory of Luhansk. Ukraine's Deputy Defense Minister Mariar said the fighting in the Donbas region had reached "the highest intensity".
[Putin said that he is willing to facilitate grain exports on the condition that the West lifts sanctions against Russia]
As global concerns over food shortages and soaring prices intensify, Russian President Vladimir Putin has said he is willing to boost exports of food and fertilizers, but only if sanctions are lifted. Putin did not indicate whether he was referring to Russian exports or Ukrainian exports blocked by the country's blockade of Ukrainian ports. The United States and its allies, however, are unlikely to agree to lift broad sanctions on Russia. Putin spoke with Italian Prime Minister Mario Draghi on Thursday, and a statement from Draghi's office did not mention discussing the lifting of sanctions with Putin, saying the focus of the dialogue was on finding a common solution to the food crisis.
[Belarus plans to establish the Southern Combat Command]
Belarusian President Alexander Lukashenko said on the 26th that Belarus plans to establish the Southern Combat Command. Lukashenko said that the US-led Western countries continue to pursue policies that worsen the situation in the world. They have fiercely confronted countries such as Russia and held large-scale military exercises around Belarus. Events in Belarus' neighbors show that the threats to Belarus' military security have changed dramatically. Lukashenko said that the current situation, more than ever, requires Belarusian forces to be ready to respond adequately to military aggression.
[Turkey says it is negotiating with Russia and Ukraine to open up grain export channels]
Turkey is negotiating with Russia and Ukraine to open a passage for exporting grains from Ukraine through the Bosphorus strait, multiple Turkish media reported, citing Reuters. Negotiations are currently under wraps. Turkish officials have not confirmed the news. Since the outbreak of the Russian-Ukrainian conflict, Ukraine's 7 million tons of wheat, 14 million tons of corn kernels, 3 million tons of sunflower oil and other agricultural products have been unable to enter the world market due to the blockade of seaports.
[Syrian media: The United States sent a batch of military supplies into Syria]
U.S. troops stationed in Syria used armored vehicles to escort a convoy into Syria through the illegal border crossing between Syria and Iraq, SANA reported on May 26, local time. It is reported that the convoy consists of 50 trucks and oil tankers, which are equipped with US military equipment, military ammunition and other logistical materials and munitions to supply the US troops stationed in northeastern Syria.
[New York Fed survey shows U.S. consumers expect inflation shock to pass]
① A report released by the Federal Reserve Bank of New York on Thursday showed that American consumers still mostly believe that the current inflation shock is only temporary, and that price increases will remain low and stable in the long run.
② The survey confirms earlier findings by the New York Fed that while short-term inflation expectations are rising, consumers expect prices to rise by only about 3 percent on average over the next five years. This suggests consumers expect the recent price surge to cool over time, the researchers said.
③ "While short-term inflation expectations continue to trend upward, medium-term inflation expectations appear to have plateaued over the past few months, while longer-term inflation expectations remain fairly stable," the researchers wrote in a blog post. New York Fed President John Williams is a co-author.
④ The Fed's inflation target is 2%. The Fed's preferred inflation measure, the Commerce Department's personal consumption expenditures price index, rose 6.6% in March from a year earlier; the Labor Department's consumer price index rose 8.3% in April.
⑤ The article points out that people's views on the medium-term price trend are more divided. The proportion of respondents who expect both high inflation and low inflation (or even deflation) in three years time has risen. "Somewhat surprisingly, consumers are divided in their medium-term inflation expectations."
In the commodity close, Brent crude futures rose $3.37, or 3.0%, to settle at $117.40 a barrel, while U.S. crude futures rose $3.76, or 3.4%, to settle at $114.09 a barrel. U.S. gold futures settled up 0.07% at $1,847.6.
In terms of U.S. stocks closing, the Dow Jones Industrial Average rose 516.91 points to close at 32,637.19 points, or 1.61%; the S&P 500 rose 79.11 points, or 1.99%, to close at 4057.84 points; the Nasdaq rose 305.91 points, or 2.68% , reported 11740.65 points.
Friday ahead
List of main market conditions in the world
U.S. Wall Street stocks ended sharply higher on Thursday, as retailers released upbeat profit forecasts and easing worries about an overly aggressive Fed rate hike boosted investor buying sentiment.
All three major U.S. stock indexes posted strong gains, with economically sensitive consumer discretionary and chip stocks outperforming the broader market. The tech-heavy Nasdaq was the biggest gainer, jumping nearly 2.7 percent, boosted by Apple, Tesla and Amazon.
All three major indexes were on track to end their longest weekly losing streak in decades, with the S&P tumbling 14.1%, just one step away from confirming a bear market.
This week, all three major stock indexes are on track for their biggest weekly gain since mid-March.
"The first-quarter earnings season is largely over, better than expected, coupled with the Fed's indications of early tightening and hints that it may pause further growth later in the fall," said Sam Stovall, chief investment strategist at CFRA Research. interest rates, all of which give investors reason to be optimistic.”
Upbeat forecasts from retailers on Thursday appeared to offset gloomy warnings from peers in recent weeks. Macy's surged 19.3% after raising its annual profit forecast.
Discount chains Dollar General and Dollar Tree jumped 13.7% and 21.9%, respectively, after both raised their annual revenue forecasts, a sign that consumers are buying lower-priced items amid multi-decade high inflation.
Minutes from the U.S. Federal Open Market Committee's (FOMC) latest monetary policy meeting calmed fears that the U.S. central bank may become more hawkish, which has fueled market volatility in recent weeks.
"There has been a 65% increase in single-day gains or losses of more than 1% compared to the average since World War II," Stovall said.
"If the Fed is too aggressive, they will curb inflation, but they will also curb growth," he added. "Like in winter, tap the brakes, not slam, to stay in control and avoid getting out of control."
Economic data on Thursday, including initial jobless claims, pending home sales and gross domestic product (GDP), were mixed, suggesting the economy was showing just enough weakness to prompt the Fed to turn dovish before the fall.
The Dow Jones Industrial Average rose 516.91 points to close at 32637.19 points, or 1.61%; the S&P 500 rose 79.11 points, or 1.99%, to close at 4057.84 points; the Nasdaq rose 305.91 points, or 2.68%, to 11740.65 points .
precious metal
Gold prices edged down 0.15% on Thursday. They fell to around the 1840 mark during the session and closed at around the 1850 mark. The Federal Reserve's aggressive monetary policy tightening plan weakened the appeal of gold, and the stock market rebound added to the pressure. But then the market's concerns about the Fed's excessive interest rate hikes cooled, and the dollar fell near a one-month low, attracting bargain-hunting buying to support gold prices. U.S. gold futures settled up 0.07% at $1,847.6.
"The minutes didn't change anything," said Bart Melek, head of commodity strategy at TD Securities. "The market is starting to realize that the Fed will continue to take strong measures to control inflation. The tightening story isn't over no matter how you imagine it, and It is very safe to say that the interest rate environment will continue to become more restrictive.”
Gold prices were partly under pressure as U.S. stock indexes stabilized this week, Kitco senior analyst Jim Wycoff said in a note.
The number of Americans filing for unemployment benefits fell more than expected last week as the labor market remained tight. Despite rising interest rates and tighter financial conditions, job demand remains strong.
The dollar hovered near a one-month low, limiting losses in gold prices, while U.S. 10-year Treasury yields hit their lowest since April.
crude
Oil prices climbed about 3 percent on Thursday to a two-month high on signs of tight supplies ahead of the U.S. summer driving season and a dispute between the European Union and Hungary over an embargo on Russian oil.
Traders also noted that oil prices rose along with stocks and the dollar weakened against a basket of currencies, making crude oil cheaper to buy in other currencies.
Brent crude futures rose $3.37, or 3.0%, to settle at $117.40 a barrel, while U.S. crude futures gained $3.76, or 3.4%, to settle at $114.09 a barrel.
Brent closed at its highest level since March 25 after six straight days of gains. U.S. crude closed at its highest level since May 16.
"The crude oil market will remain tight as the start of the summer driving season will maintain the trend of declining U.S. inventories, and so crude oil prices rose," said Edward Moya, senior market analyst at data and analytics firm OANDA.
Oil prices were supported by data on Wednesday showing that U.S. crude inventories fell sharply last week.
European Council President Michel said he was confident a deal could be reached before the next Council meeting on May 30.
Hungary remains a stumbling block as EU sanctions require unanimous support. Hungary is asking for about 750 million euros ($800 million) to upgrade its refinery and expand a pipeline from Croatia.
Even without a formal ban, Russia's oil supplies have been greatly reduced as buyers and trading firms shun suppliers in the country.
RIA Novak quoted Deputy Prime Minister Novak as saying that Russia's oil production should fall to 480-500 million tons this year from 524 million tons in 2021.
Six OPEC+ sources said the coalition would stick to the oil output deal reached last year at its June 2 meeting and increase output by 432,000 bpd in July, ignoring Western demands to increase output faster to ease a sharp rise in oil prices. call. OPEC+ is an alliance of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia.
foreign exchange
The dollar fell 0.33 percent on Thursday to near a near one-month low at 101.77, as markets pondered whether the Federal Reserve could slow or even pause its tightening cycle in the second half of the year, which would dent the greenback's safe-haven appeal.
Ed Moya, senior market analyst at Oanda, said, "The market has become more optimistic that the Fed will not tighten monetary policy too aggressively, and the sell-off we have seen in some risk assets may be overdone, especially equities."
"That's driving a slight uptick in risk assets, which is very good for risk trades, which is actually bad for the dollar," he said.
The dollar index hit a near 20-year high above 105 earlier this month, but signs that the Fed's aggressive action may already be slowing economic growth prompted traders to scale back bets on tightening and U.S. Treasury yields also Down from multi-year highs.
"While this is not the base view of our economics team...we think the Fed will likely think that reaching a rate level of 1.75%-2% allows for policy normalization and then has an opportunity to pause and assess its impact on employment and inflation," JPMorgan strategists said in a client note.
Implied yields on the June 2023 Eurodollar futures contract — where the market broadly expects rates to be at that point — fell by about 80 basis points this month.
"The dollar is range-bound right now," said Boris Schlossberg, managing director of foreign exchange strategy at BK Asset Management.
Data on Thursday confirmed that the U.S. economy shrank in the first quarter, hurt by a record trade deficit and a slightly slower pace of inventory builds than in the fourth quarter. A separate report showed that the number of Americans filing for unemployment benefits fell last week, a sign of continued labor market tension.
On Thursday, euro-dollar was up 0.4% at 1.0731 and dollar-yen was down 0.15% at 127.07. Risk-related currencies fluctuated and rose slightly. The Australian dollar rose 0.14% against the US dollar to close at 0.7096, and the New Zealand dollar rose 0.09% against the US dollar to close at 0.6478.
Sterling rose to a three-week high of $1.26165 against the dollar as Britain announced a 25 percent windfall tax on oil and gas producers' profits while offering a 15 billion pound ($18.9 billion) package for households struggling to pay soaring energy bills support. GBP/USD was last up 0.21% at 1.2602.
international news
【U.S. labor market remains strong, but corporate profits decline across the board makes economic outlook uncertain】
The number of Americans filing for unemployment benefits fell more than expected last week as the labor market remained tight. Despite rising interest rates and tighter financial conditions, job demand remains strong. Initial jobless claims fell by a seasonally adjusted 8,000 to 210,000 for the week ended May 21, the Labor Department said. But the outlook for the economy remains unclear. The Commerce Department released a report showing that companies’ current production profits fell by $66.4 billion, or 2.3 percent, in the first quarter, the first decline in nearly two years. The Commerce Department also announced that the U.S. first-quarter gross domestic product (GDP) fell by a revised 1.5% year-on-year rate, compared with a 1.4% decline in the initial value.
[OPEC+ is expected to continue to increase production slightly in July, ignoring calls from the West to speed up production]
Six OPEC+ sources said the coalition would stick to the oil output deal reached last year at its June 2 meeting and increase output by 432,000 bpd in July, ignoring Western demands to increase output faster to ease a sharp rise in oil prices. call. OPEC+ members insist that the oil market is balanced and that the recent price rise has nothing to do with fundamentals.
[UK monkeypox cases rise to 90]
The UK Health Security Agency said on May 26 local time that the number of monkeypox cases in the UK has increased to 90. Among them, there were 8 new cases of monkeypox in England, and a total of 85 cases of monkeypox; 3 cases of monkeypox in Scotland, 1 in Wales and 1 in Northern Ireland.
[Russian troops make progress in eastern Ukraine, close to encircling the Ukrainian army]
A Ukrainian official said advancing Russian forces came close to encircling Ukrainian forces in the east, at one point capturing positions on a road outside two key Ukrainian-held cities, before being pushed back. Thousands of soldiers are attacking from three sides in an attempt to surround Ukrainian troops in Severo-Donetsk and Lisichansk. If the two cities, which straddle the North Donets River, fall, almost all of Luhansk's Donbas region will be under Russian control. Western military analysts see the battle for the two cities as a potential turning point in the war, as Russia has redefined its main goal as occupying the east.
[Ukraine has acquired advanced long-range weapons, and the United States and Ukraine discuss the risk of escalating the situation by hitting the Russian hinterland]
Washington has discussed with Kyiv the danger of escalation if it strikes the Russian heartland, U.S. diplomats told Reuters, as the United States and its allies provide Ukraine with increasingly sophisticated weapons. These highly sensitive, closed-door discussions, which had never been reported before, did not impose clear geographic restrictions on the use of weapons supplied to the Ukrainian army. But three U.S. officials and diplomatic sources said the talks were aimed at reaching a consensus on the risk of escalation.
[Deputy Defense Minister of Ukraine: The fighting in the Donbas region has reached the highest intensity]
According to Russian media reports, on the evening of the 26th local time (GMT+8 in the early morning of the 27th), Arestovich, an adviser to the Chief of the Office of the President of Ukraine, confirmed that the Ukrainian army had lost the strategic location of Donetsk, Bonliman. The military administrator of Luhansk confirmed that the Russian army has occupied 95% of the territory of Luhansk. Ukraine's Deputy Defense Minister Mariar said the fighting in the Donbas region had reached "the highest intensity".
[Putin said that he is willing to facilitate grain exports on the condition that the West lifts sanctions against Russia]
As global concerns over food shortages and soaring prices intensify, Russian President Vladimir Putin has said he is willing to boost exports of food and fertilizers, but only if sanctions are lifted. Putin did not indicate whether he was referring to Russian exports or Ukrainian exports blocked by the country's blockade of Ukrainian ports. The United States and its allies, however, are unlikely to agree to lift broad sanctions on Russia. Putin spoke with Italian Prime Minister Mario Draghi on Thursday, and a statement from Draghi's office did not mention discussing the lifting of sanctions with Putin, saying the focus of the dialogue was on finding a common solution to the food crisis.
[Belarus plans to establish the Southern Combat Command]
Belarusian President Alexander Lukashenko said on the 26th that Belarus plans to establish the Southern Combat Command. Lukashenko said that the US-led Western countries continue to pursue policies that worsen the situation in the world. They have fiercely confronted countries such as Russia and held large-scale military exercises around Belarus. Events in Belarus' neighbors show that the threats to Belarus' military security have changed dramatically. Lukashenko said that the current situation, more than ever, requires Belarusian forces to be ready to respond adequately to military aggression.
[Turkey says it is negotiating with Russia and Ukraine to open up grain export channels]
Turkey is negotiating with Russia and Ukraine to open a passage for exporting grains from Ukraine through the Bosphorus strait, multiple Turkish media reported, citing Reuters. Negotiations are currently under wraps. Turkish officials have not confirmed the news. Since the outbreak of the Russian-Ukrainian conflict, Ukraine's 7 million tons of wheat, 14 million tons of corn kernels, 3 million tons of sunflower oil and other agricultural products have been unable to enter the world market due to the blockade of seaports.
[Syrian media: The United States sent a batch of military supplies into Syria]
U.S. troops stationed in Syria used armored vehicles to escort a convoy into Syria through the illegal border crossing between Syria and Iraq, SANA reported on May 26, local time. It is reported that the convoy consists of 50 trucks and oil tankers, which are equipped with US military equipment, military ammunition and other logistical materials and munitions to supply the US troops stationed in northeastern Syria.
[New York Fed survey shows U.S. consumers expect inflation shock to pass]
① A report released by the Federal Reserve Bank of New York on Thursday showed that American consumers still mostly believe that the current inflation shock is only temporary, and that price increases will remain low and stable in the long run.
② The survey confirms earlier findings by the New York Fed that while short-term inflation expectations are rising, consumers expect prices to rise by only about 3 percent on average over the next five years. This suggests consumers expect the recent price surge to cool over time, the researchers said.
③ "While short-term inflation expectations continue to trend upward, medium-term inflation expectations appear to have plateaued over the past few months, while longer-term inflation expectations remain fairly stable," the researchers wrote in a blog post. New York Fed President John Williams is a co-author.
④ The Fed's inflation target is 2%. The Fed's preferred inflation measure, the Commerce Department's personal consumption expenditures price index, rose 6.6% in March from a year earlier; the Labor Department's consumer price index rose 8.3% in April.
⑤ The article points out that people's views on the medium-term price trend are more divided. The proportion of respondents who expect both high inflation and low inflation (or even deflation) in three years time has risen. "Somewhat surprisingly, consumers are divided in their medium-term inflation expectations."
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