Tagi - outlook
Anti-fiat hedges like gold may surrender in the third quarter if a second wave of the coronavirus hits the global economy and dampens future inflation prospects. Demand for haven-linked assets like the US Dollar may amplify XAU/USDs losses as traders re-allocate capital from relatively illiquid commodities to more frequently-traded currencies like the Greenback.To get more news about WikiFX, you can visit wikifx news official website.
Rising unemployment numbers and uncertainty embedded in labor statistics could also magnify the appeal of holding haven-linked assets. The prospect of another lockdown in numerous localities around the United States could further dampen price growth and erode the appeal of gold. Fed Chairman Jerome Powell warned that the road to recovery will be arduous and "long".
Furthermore, financial fragility in the corporate debt sector could also hurt gold prices if the market for leveraged loans and other credit derivatives undermine interbank stability. The dramatic widening of spreads on credit default swaps (CDS) for sub-investment grade corporate debt during the global selloff in equity markets in March saw gold prices crater with risk-oriented assets.
An erosion of the fundamental circumstances - like reinstates or extended lockdown measures - could destabilize highly-leveraged companies and increase the likelihood of widespread default if their already-thin revenue streams are dried up. In this environment, gold prices could suffer while a premium may be put on the anti-risk US Dollar.
As 2020 draws to a close, prospects for economic recovery next year are emerging. The IMF projects that the global economy will shrink by 4.4% in 2020, followed by a 5.2% rebound in 2021, supporting a V-shaped recovery.To get more news about WikiFX, you can visit wikifx official website.
For the moment, whether the global economy will grow beyond 5% in 2021 depends on the following uncertainties:
So far, Covid-19 infections are increasing to varying degrees in Asia, America, and Europe, with the epicenter shifting from developed countries to emerging markets. Surging cases have raised fears of another downturn in the world economy and put pressure on central banks and governments. Economists from Wall Street believed another recession will rage the US, Eurozone, and Japan, both this quarter and next. Global economic growth in 2021 could be far below expectations if mass vaccinations won't be available soon.
As the US election winds down, challenges remain ahead of China-US trade. While Trump likes to use tariffs as a weapon in trade wars, Biden believes that tariff wars are not a good method and may use trade dispute resolution mechanisms, collective bargaining, and domestic tax policies to support American companies, said Imogen Page-Jarrett, a research analyst at the Economist Intelligence Unit. With this in mind, the bilateral relations are bound to deteriorate over time as the trade war will continue in various forms.
Any adverse changes in the above two concerns may turn drag 2021s global economic recovery below expectations, turning the V-shaped trajectory to a U-shaped or Nike swoosh pattern. Under such an economic backdrop, investors should be alert to potential risks. As a leading media in the forex industry, WikiFX has integrated forex news feed, forums, exposures, broker information query, and other functions. Please download the WikiFX App for detailed financial information: bit.ly/wikifxIN
In the manufacturing sector, polyisobutylene is widely used in the production of tires, internal tubes, and rubber components. The need for PIB rises as the auto sector develops, driving the market ahead.
In lubricants and fuel additives, PIB is used as a viscosity modifier and dispersant. The need for PIB in this market is fuelled by the developing automotive and manufacturing industries, as well as the rising demand for highly efficient lubricants and fuel-efficient additives.
Polyisobutylene is a desirable material in numerous adhesives and sealants due to its superior binding characteristics and chemical stability. The expanding demand for PIB-based adhesives and sealants is influenced by the expanding construction and packaging sectors.
Drug methods for administration like transdermal patches and sticky gels use polyisobutylene, particularly in the pharmaceutical industry. Due to its lubricating and thickening characteristics, it is also used in cosmetics, lotions, and creams for personal care.
Due to their capacity to improve lubricant performance and satisfy regulatory criteria, lubricant additives dominate the industry. They increase lubricants' overall performance, allowing them to survive harsh circumstances and offer the best lubrication and protection. Also, via promoting cleaning the engines, lowering emissions, and improving engine performance, lubricant additives help with adhering to industrial and environmental laws.
In order to fulfil the growing demands of manufacturing machines and automobile engines, lubricant additives are now absolutely necessary due to the expanding industrialization and machinery utilization across numerous industries.
Modern additives with enhanced functionality have been introduced as a result of ongoing research and development activities in lubricant additive technology. To fulfill the changing requirements of contemporary machinery and lubrication systems, additives including friction modifiers, anti-wear agents, and antioxidants are continuously developing.
APAC is the fastest-growing polyisobutylene market. Approximately 70% of the APAC market's revenues came from China in 2022, and throughout the forecast period, its revenue contribution is anticipated to expand at a strong CAGR of around 6%.
This is so that the government's plans for infrastructure development can help the building, automotive, and cosmetics industries as well as economic growth. However, these are not long-term predictions, and moderate industrial growth is expected to continue, which will impact the nation's use of polyisobutylene in the ensuing years.
