The Hang Seng Index reversed its downward trend in Hong Kong on Thursday (February 12th), weakening by around 0.9% to around 27,000 after a strong session earlier. This decline halted the momentum of the short term rally, as investors began to reduce risk in large cap stocks. Among the index's contributors, Tencent was a major drag, with its shares falling by around 2.3%, putting pressure on the technology sector, which has recently been a driving force behind market gains. Weakness in large cap companies like this typically quickly impacts sentiment due to their significant weighting in...
The French prime minister's decision to hold a confidence vote next month carries heavy risks for the economy, bringing back fears of recession, business leaders said on Wednesday. Opposition parties have said they will bring down the minority government in the September 8 vote which Prime Minister Francois Bayrou unexpectedly announced on Monday, throwing the euro zone's second economy back into crisis. Opinion polls carried out after Bayrou's announcement show most French people now want new national elections, pointing to deepening dissatisfaction with politics and a risk of lasting...
President Donald Trump's unprecedented and intensifying attacks on the Federal Reserve risk backfire by hitting financial markets and the economy with higher long-term borrowing costs. For weeks, he has been slamming Chairman Jerome Powell for not significantly cutting interest rates to stimulate the economy and as Trump sees it lower the government's debt bill. He has nominated the head of his Council of Economic Advisers to the central bank's board and is now seeking to oust Governor Lisa Cook, paving the way for a legal battle over the institution's political autonomy. Yet, despite all...
Russia launched a massive drone attack on energy and gas transportation infrastructure in six Ukrainian regions overnight, leaving more than 100,000 people without power, Ukrainian officials said on Wednesday (August 27). Russian forces significantly damaged gas transportation infrastructure in the Poltava Region and attacked equipment at a major substation in the Sumy Region, the Energy Ministry said via the Telegram messaging service. The attack left more than 100,000 people without power in the Poltava, Sumy, and Chernihiv regions, Ukrainian President Volodymyr Zelenskiy said. Ukraine's...
The Indian government estimates that the newly imposed 50% US tariff will affect exports worth USD 48.2 billion. Officials have warned that the additional duties could make shipments to the US commercially unviable, potentially leading to job losses and slower economic growth. To soften the impact, the government is working on a multi-pronged strategy, including Goods and Services Tax (GST) reforms aimed at boosting domestic demand. The 50% tariff, effective from Wednesday (August 27), is expected to hit exports of textiles, shrimp, leather, and gems and jewellery the hardest. The US...
Australian inflation (CPI) rose 2.8% year-on-year in July, the fastest pace since July 2024. The housing cost component jumped 3.6% year-on-year, highlighting price pressures from rents and utilities. This figure was slightly above market expectations, signaling that the disinflation process is underway, but not yet complete. In the bond market, Australian 3-year bond futures fell (yields rose) shortly after the hotter-than-expected CPI release. However, this reaction is expected to be temporary. The global picture still points to the Federal Reserve moving toward interest rate cuts, a key...