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World Today: “OPEC+ Cuts Oil Production by 1.16 Million Barrels per Day, Upsetting US Government’s Desire”

OPEC+ surprised the market by announcing a further cut in oil production by 1.16 million barrels per day, a move that analysts believe will result in a sharp increase in oil prices. This decision could also upset the US government’s desire for OPEC Plus to increase oil production. Most analysts previously expected OPEC Plus to maintain its oil production policy by reducing output by 2 million barrels per day until the end of 2023. With this latest decision, OPEC Plus’ overall oil production cuts now amount to 3.66 million barrels per day or 3.7% of global oil demand. According to a statement from OPEC Plus, this voluntary production reduction will take effect from May until the end of 2023.

“Chinese Stock Market Predicted to Rise as Domestic Consumption Recovers”

The Chinese stock market is expected to gain new support in the second quarter of 2023 as domestic consumption recovers and economic growth prospects strengthen. According to a survey of 21 analysts and money managers by Bloomberg News, most expect China’s CSI300 index to rise 5.2% by the end of June, outpacing other stock markets around the world due to China’s strong economy and the status of the Chinese stock market as a safe investment place.

“European Commission President Rumored to Run for NATO Secretary-General”

Diplomatic sources say that European Commission President Ursula von der Leyen is set to run for the post of secretary-general of the North Atlantic Treaty Organization (NATO), according to The Sun newspaper. While some NATO members have confirmed this, Britain is likely to oppose von der Leyen’s candidacy due to her poor record as Germany’s former defense minister in charge of the military. The current NATO secretary-general is expected to end his planned tenure in October, after renewing the position three times and holding it for almost nine years.

“US Commercial Bank Deposits Fall to Lowest Level Since August”

For the week ending March 22, all US commercial bank deposits fell to their lowest level since August but declined at a slower rate than the previous week. However, deposit balances are stabilizing for smaller banks, which are vulnerable to deposit rallies following the collapse of Silicon Valley Bank (SVB). The Federal Reserve reported that total bank deposits in the US declined by $1,257 billion for the week ended March 22, less than the record $1,745 billion decline the previous week after the collapse of SVB and Signature Bank (SB), which amounted to about $50 billion.

“China Launches Safety Review of Computer Chips Imported from Micron Technology Inc.”

Amid the ongoing conflict between the US and China over computer chips, the Chinese government has launched a safety review of computer chips imported from Micron Technology Inc., the largest US memory chip maker. The review aims to ensure security for China’s computer networks and protect national security. Micron Technology shares closed Friday 4.4% lower on the New York Stock Exchange, marking the biggest drop in three months, as Micron accounts for about 11% of its chips to China.

“Important Economic Data to Watch Today”

Several countries are set to release important economic data today. Japan will release the Confidence Index of Japan’s Major Manufacturers (Tankan) for Q1/2023, Indonesia will release March inflation, and China will release Purchasing Managers Index (PMI) produced in March from Caixin. Meanwhile, S&P Global will release the Purchasing Managers’ Index (PMI) for March manufacturing for several countries, including South Korea, India, France, the EU, Germany, the UK, and the US.

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