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 Bloomberg Dollar Index is flat after previously rising slightly by around 0.1%. This slight gain came after US Department of Labor data showed that job openings in October rose to a five-month high. Market participants are now adopting a wait-and-see approach ahead of the Fed's decision, while assessing the direction of interest rate policy next year. This Wednesday, the market expects the Fed to cut interest rates for the third consecutive time. However, the main focus is not just on whether to cut or not, but rather on the latest dot plot, economic projections, and Jerome Powell's...
Silver prices are strengthening after breaking through the $60 per ounce level for the first time. On Wednesday morning, silver briefly reached a record high of around $60.92 per ounce, continuing its 4.3% surge in the previous session. This rapid rise has led many market players to increasingly look to silver as a leading asset amidst sentiment regarding interest rate easing. From a fundamental perspective, silver's rally is largely supported by expectations that the Federal Reserve will cut its benchmark interest rate by another 0.25% at the conclusion of its December 9-10 meeting. Lower...
Japanese stocks are higher due to a weaker yen despite continued uncertainty over the U.S. interest rate outlook next year. Auto, brokerage and metals stocks are leading gains. Honda Motor is up 4.8%, Nomura Holdings is 2.4% higher and Mitsui Kinzoku is up 5.4%. USD/JPY is at 156.81, up from 156.08 as of Tuesday's Tokyo stock market close. Investors are closely watching any progress in Prime Minister Sanae Takaichi's measures to support the economy ahead of the Bank of Japan's policy meeting next week. The Nikkei Stock Average is up 0.9% at 51106.23. Source: Bloomberg
Gold prices strengthened slightly in the early Asian session ahead of today's FOMC meeting results. Spot gold rose around 0.1% to around $4,210.85 per troy ounce, with investors opting for caution while awaiting the Fed's decision, which could trigger a new direction for the precious metal. Generally, the market has already expected a 25 basis point interest rate cut, so the main focus is no longer on the figure, but on the latest economic projections and the communication style of Fed Chairman Jerome Powell. Analyst Daniel Takieddine of Sky Links Capital Group believes that Powell's...
Oil held the biggest two-day drop in a month as concerns about global oversupply continued to weigh on sentiment. West Texas Intermediate rose above $58 a barrel after losing 3% over the previous two sessions, while Brent crude closed near $62. The US said domestic crude production would hit a record high 13.6 million barrels a day this year, adding to a flood of supply hitting the global market. "Whether it's a glut or a super-glut, it's kind of hard to get away from," Saad Rahim, the chief economist of global commodities trader Trafigura Group, said on...