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 index held steady around 99.5 on Tuesday (November 18), halting the moderate gains recorded over the previous two sessions, as traders remained cautious and refrained from taking large positions ahead of key economic data releases. The latest data from the US Department of Labor showed initial jobless claims at 232,000 for the week ending October 18, while continuing claims reached 1.957 million, the highest level since August. The US statistical agency has begun releasing data delayed by the government shutdown, with the employment report scheduled for Thursday. Investors...
Gold prices fell to their lowest in more than a week on Tuesday (November 18th) as fading bets on a Federal Reserve interest rate cut next month weighed on demand ahead of the release of delayed US economic data this week. Spot gold fell 0.3% to $4,033.29 an ounce, as of 09:09 GMT, after earlier hitting its lowest level since November 10. US gold futures for December delivery fell 1% to $4,032.60 an ounce. "Market participants are expecting a US rate cut following more aggressive comments from Fed officials," said UBS analyst Giovanni Staunovo. "I expect gold prices to bottom soon, as I...
Silver fell below the $50 per ounce threshold, pressured by a stronger US dollar and fading expectations of a Federal Reserve interest rate cut next month. Traders are now focusing on a series of key US data releases following the end of the country's longest government shutdown, including the September employment report on Thursday, for clearer insight into labor market conditions. The market is pricing in a roughly 40% chance of another Fed rate cut in December, down sharply from nearly 100% immediately after the September decision, amid a lack of recent government data and growing...
The Japanese yen briefly touched its lowest level since early February before recovering slightly in Tuesday morning's Asian trading session. This slight recovery occurred without strong buying momentum, but was helped by comments from Japanese Finance Minister Satsuki Katayama, who signaled intervention to curb the yen's weakening. Furthermore, the risk-off market sentiment has restored support for the yen as a safe haven asset. Meanwhile, weakening demand for the US dollar has pushed the USD/JPY pair back below 155.00. On the domestic policy front, market vigilance has been renewed...
Gold held a three-day drop, hurt by fading expectations for another US interest-rate reduction next month. Bullion traded near $4,020 an ounce, after losing almost 4% over the prior three sessions. With investors awaiting a backlog of data after the recent US government shutdown, several Federal Reserve officials have cautioned against another cut, although Governor Christopher Waller came out in favor. Interest-rate swaps now imply a less-than-50% likelihood of a December cut after all but pricing in a quarter-point reduction less than a month ago. The shift in...