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 US dollar found support on Thursday (December 11) from a broad risk-averse market mood, but failed to recover overnight losses against other currencies such as the euro, yen, and pound sterling after the Federal Reserve offered a less aggressive outlook than some had expected. Investors in Asia sold riskier assets such as stocks and cryptocurrencies after disappointing earnings from US cloud computing giant Oracle rekindled concerns that soaring AI infrastructure costs could outpace profitability. This helped stem the decline in the safe-haven US dollar, which initially faced selling...
Gold (XAU/USD) maintains its offered tone below the weekly high touched earlier this Thursday, though it manages to defend the $4,200 mark heading into the European session. The US Dollar (USD) stalls its post-FOMC decline and stages a modest recovery from its lowest level since October 24. This, along with the underlying bullish sentiment, turns out to be a key factor exerting some downward pressure on the precious metal. However, the Federal Reserve's (Fed) dovish outlook might keep a lid on any meaningful USD appreciation and act as a tailwind for the non-yielding Gold. Apart from this,...
The U.S. dollar fell against major peers including the euro, Swiss franc, and Japanese yen on Wednesday after the Federal Reserve lowered interest rates in a widely-expected move, but indicated it will likely pause its easing cycle at the next policy meeting in January. The greenback was further weighed down by comments Fed Chair Jerome Powell in a press briefing after the rate decision, saying that the U.S. central bank's next move is unlikely to be a rate hike. He added that a rate increase is not the base case reflected in new projections from policymakers. The Fed's decision to lower...
Oil extended an advance after the US seizure of a sanctioned tanker off Venezuela heightened geopolitical concerns. West Texas Intermediate rose to near $59 a barrel after advancing as much as 1.4% on Wednesday. Brent crude closed above $62. US forces intercepted and seized the very large crude carrier in a move that will likely deter others from shipping crude from OPEC member Venezuela. Meanwhile, Ukraine attacked a shadow-fleet tanker linked to Russia's oil trade, even as the US pushes for a ceasefire. The increased geopolitical tensions come against a...
Gold prices consolidated at the start of the Asian session at around $4,228/oz as the market still digested the latest FOMC decision. The Fed cut interest rates, but at the same time signaled that it was unwilling to promise an aggressive easing path next year. For market participants, this was a unique combination: on the one hand, there was support from lower interest rates, on the other, a "strong warning" that the next cut would not be automatic and could be slower than expected. In theory, a Fed rate cut eases short-term financial conditions: borrowing costs are cheaper, bond yields...