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 Japanese Yen (JPY) weakened against its US counterpart for the fourth straight day, pushing the USD/JPY pair to the 151.00 range, or a three-week high during the Asian session on Tuesday (3/25). Global risk sentiment remained supported by hopes that US President Donald Trump's so-called tit-for-tat tariffs would be narrower and less stringent than previously feared. Additionally, optimism over a possible Russia-Ukraine peace deal and reports that China is considering including services in a subsidy program to stimulate consumption further boosted investor confidence, weakening the...
The Australian dollar (AUD) extended its gains for the second straight session on Tuesday (3/25). However, the AUD/USD pair faces downward pressure amid a stronger US dollar (USD). Strong S&P Services PMI data and cautious comments from the Fed likely fueled the greenback's gains. The AUD is supported as investors anticipate the Reserve Bank of Australia (RBA) to leave rates unchanged in April, following its first rate cut in four years in February. Additionally, expectations of Chinese stimulus continue to bolster the Australian economy, given the strong trade ties between the two...
Gold consolidated early in the Asian session, but may be weighed down by easing concerns over U.S. tariffs that have dented the precious metal's appeal as a safe haven. President Trump said overnight that he may soften the reciprocal tariffs he plans to impose on U.S. trading partners next month, and that some countries may be exempted. "Gold looks quite pressured," given its recent rally through the $3,000/oz level, Fawad Razaqzada, market analyst at City Index and FOREX.com, said in an email. "A long-overdue cooling-off period may be in the offing," the analyst added. Spot gold was little...
Oil prices rose after President Donald Trump threatened to punish any country that buys crude from Venezuela, raising concerns about a potential tightening of global supplies. West Texas Intermediate crude was trading above $69 a barrel after rising 1.2% on Monday, while Brent settled at $73. Trump has vowed to impose 25% tariffs on buyers of the South American nation's oil and gas on April 2, which could cut off supplies to refiners in China, India, Spain and the U.S. Trump's trade policies and retaliatory actions have led to increased volatility across global markets, with benchmark...
Japanese Yen (JPY) is underperforming most major currencies and USD/JPY is up near technical resistance at 150.00, BBH's FX analysts report. BoJ is unlikely to tighten the policy by more than is currently priced"Private sector activity in Japan deteriorated in March. The composite PMI fell from a six-month high of 52.0 in February to 48.5 in March, to signal a renewed reduction in business activity. The services PMI fell to a three-year low at 49.5 vs. 53.7 in February and the manufacturing PMI plunged to a multi-year low at 48.5 vs. 52.0 in February." "Meanwhile, Japan Finance Minister...