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 EUR/USD pair traded flat on Thursday, trading around 1.1596, as market liquidity thinned during the US Thanksgiving holiday. Despite the limited movement, pressure on the US dollar remained as expectations mounted that the Federal Reserve would cut interest rates soon. The combination of declining inflation, weak retail sales data, and declining consumer confidence has made the market increasingly confident that borrowing costs in the US will fall. According to the CME FedWatch Tool, the market now prices around an 85% chance of the Fed cutting interest rates by 25 basis points. This...
Global oil prices are still trending lower and are now heading for their longest monthly decline in more than two years. West Texas Intermediate (WTI) is hovering around $59 per barrel, slightly above Wednesday's close before the Thanksgiving holiday in the US, while Brent is holding above $63 per barrel. The US oil benchmark is already on track for its fourth consecutive monthly decline in November, the longest since the first quarter of 2023. This price pressure reflects market concerns about demand and future supply policies. Meanwhile, market participants' attention is also focused on...
Gold prices have been stable but remain on track to rise for the fourth consecutive month. In Friday morning trading in Asia, gold bullion was trading around $4,163 per ounce, having risen more than 2% so far this week. Positive sentiment stems from expectations that the Federal Reserve will cut interest rates next month. Comments from several Fed officials and the delayed release of economic data have made the market increasingly confident that borrowing costs will fall. Currently, swap market participants even assess a greater than 80% chance of a 0.25% interest rate cut in December. For...
Oil prices rose on Thursday (November 27) as market participants weighed the possibility of reaching a deal in negotiations to end the war in Ukraine, with trading volumes thin due to the Thanksgiving holiday in the US. Brent crude futures closed up 21 cents, or 0.2%, at $63.34 a barrel. U.S. West Texas Intermediate crude futures rose 45 cents, or 0.8%, to $59.10 a barrel at 1:46 p.m. ET (18:46 GMT). The market is torn between hope and skepticism over renewed peace efforts in Ukraine, said SEB commodities analyst Ole Hvalbye. U.S. and Ukrainian delegations will meet this week to work on a...
Gold prices weakened slightly on Thursday (November 27th), after hitting a nearly two-week high in the previous session, as investors weighed the possibility of a US interest rate cut in December. Spot gold fell 0.2% to $4,157.29 per ounce, as of 16:01 GMT. US gold futures for December delivery fell 0.2% to $4,154.30 per ounce. "We still expect the consolidation that began with the price decline in October to continue as the impact of that price decline has not yet fully subsided," said Julius Baer analyst Carsten Menke. Bullion prices have fallen 5% since hitting a record high of...