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...
World oil prices weakened and headed for a second weekly decline. Market concerns about oversupply are considered greater than potential distribution disruptions. West Texas Intermediate (WTI) crude is trading near US$56 per barrel and has fallen more than 2% this week, while Brent crude closed below US$60 per barrel in trading on Thursday. Several of the world's largest oil traders believe the market will be oversupplied by early next year. Energy trading firm Trafigura even predicts Brent prices will hover around US$50 per barrel until mid-2026, as global supply continues to be...
Gold prices were stable in the morning trading session in Asia. This precious metal was supported by the prospect of a US Federal Reserve (Fed) interest rate cut, which typically makes gold more attractive because it offers no interest yield. Fawad Razaqzada, a Global Macro market analyst at FOREX.com, stated that the current US interest rate environment opens the door to policy changes. He believes that with the US annual key interest rate hovering around 2.7%, the Fed's rate cut could occur earlier, even as early as 2026. He also believes that the short-term outlook for gold remains...
Gold (XAU/USD) erases earlier gains on Thursday after the non-yielding metal hit $4,374 and approached the all-time high of $4,381 following the release of a weaker-than-expected inflation report in the US. At the time of writing, XAU/USD trades at $4,335. Bullion retreats as markets question inflation data reliability, keep January Fed cut odds unchanged. The core US Consumer Price Index (CPI) print in November fell to its lowest level since early 2021, according to the US Bureau of Labor Statistics (BLS). Both headlined and core CPIs dipped, but economists warned that the 43-day...
Silver edged down to $65.8 per ounce, after a 3.8% surge to a new all-time high of $66.175 in the previous session, as investors reacted to softer-than-expected US inflation data. Core CPI rose at the slowest YoY pace since early 2021, reinforcing expectations that the Federal Reserve could continue cutting interest rates next year. Markets are pricing about a 25% chance of a cut in January and are almost fully expecting one by April. Meanwhile, geopolitical risks remained in focus, as the US moved to halt sanctioned Venezuelan oil shipments following last week's tanker seizure and military...
Gold prices briefly fell following the release of US inflation (CPI) data. The initial market reaction was driven by concerns that high inflation could force the Federal Reserve to maintain a tighter stance on interest rates. This condition boosted the US dollar and depressed gold prices in the short term. However, after the market more thoroughly digested the CPI data, gold rebounded. Investors assessed that inflation was not as high as feared or was showing signs of slowing, thus limiting the likelihood of further policy tightening. The weakening dollar and falling US bond yields then...