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...
Gold prices are holding steady after dropping nearly 1% in the previous session. The market is now holding its ground while awaiting two major events: the release of US employment data and the annual commodity index rebalancing process. On Thursday morning, gold held around US$4,460 per troy ounce. This "calm" movement is understandable, as many market participants are choosing to wait for a new direction before taking large positions. The main focus comes from the rebalancing of the global commodity index. A number of passive tracking funds are expected to begin selling precious metal...
Oil prices edged higher as the market digested the United States' latest moves regarding Venezuela. WTI held steady at US$56/barrel after a sharp drop, while Brent remained below US$60/barrel. This slight increase occurred as traders weighed the US's purported plan to control Venezuelan oil sales going forward. This meant more than just sanctions, but also the question of who would "regulate" the flow of Venezuelan oil to the market. US Energy Secretary Chris Wright stated that the US government would begin by offering stored crude oil, then move on to selling Venezuelan oil supplies. The...
Brent crude prices sank in volatile trading on Wednesday after U.S. President Donald Trump said Venezuela will supply tens of millions of barrels of oil to Washington. Oil prices were nursing losses from earlier this week after the U.S.' incursion into Venezuela spurred bets on a broad lifting of sanctions against the country's oil industry. Such a move could release tens of millions of barrels of supply back into markets. While heightened geopolitical uncertainty saw traders price in some risk premium, oil remained largely on the backfoot amid growing concerns over a supply glut in 2026....
The precious metals market was briefly depressed following the release of the JOLTS Job Openings data (US job openings), but in the following trading session, gold prices recovered and rose again, reflecting the volatile market dynamics ahead of the next major economic data. Initial Reaction: Decline after JOLTS Data Stronger-than-expected JOLTS data is often seen as a sign that the US labor market remains strong. This has the following impact: A strengthening US dollar, as strong data often raises expectations for a Fed interest rate hike. A rise in US bond yields, which makes...
Gold prices fell as market participants began to ignore geopolitical escalation and instead focused on a busy slate of US economic data this week. Gold weakened after rallying more than 4% in the last three sessions, now hovering near the $4,455/oz area. On the geopolitical front, tensions remain high: President Donald Trump said Venezuela would hand over 50 million barrels of oil to the US, while the White House also ruled out the use of force to control Greenland. In Asia, China imposed export controls to Japan on goods potentially used for military purposes. However, instead of...