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 current price action is likely part of a consolidation phase, most likely between 0.6435 and 0.6475. In the longer term, the risks to the AUD have shifted to the downside; the 0.6380 level is expected to provide significant support, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note. After the AUD fell to a low of 0.6399 two days ago, we highlighted yesterday that ‘AUD weakness could retest the 0.6400 level before stabilisation is likely.' This should remain below 0.6460, with minor resistance at 0.6445. Our view remains unchanged, as the AUD traded within a 0.6422/0.6455 range,...
Gold (XAU/USD) prices struggled to capitalize on their decent intraday uptick from one-and-a-half-week lows touched early Friday (6/12), albeit managed to hold modest gains through the first half of the European session. The US Treasury bond yields remained depressed amid bets that the Federal Reserve (Fed) will lower borrowing costs in December. This, in turn, pushed the US Dollar (USD) near multi-week lows and acted as a tailwind for the non-yielding yellow metal. Additionally, a slight deterioration in the global risk sentiment, geopolitical tensions, and trade war fears turned out to be...
Silver prices held steady above $31 an ounce on Friday, near a one-month high as traders bet the U.S. Federal Reserve will cut interest rates again this month. The probability of a 25 basis point rate cut in December jumped to about 72%, up from 66% last week. The expectations grew even after Fed Chair Jerome Powell signaled that the central bank was in no rush to cut rates, citing strong growth, a robust labor market and persistent inflation pressures. Additionally, speculation is growing that China could announce more stimulus measures during a key political meeting this month, which...
Gold (XAU/USD) prices recovered from hitting a one-and-a-half-week low during the Asian session on Friday and climbed to an intraday high, above $2,640 levels in the last hour. However, any meaningful appreciating move seems elusive ahead of the US Nonfarm Payrolls (NFP) report, which will be closely watched for the outlook on US interest rates and provide a fresh impetus to the non-yielding bullion. Despite this, the commodity remains on track for a second straight weekly decline. The closely watched US jobs data will guide the Federal Reserve (Fed) policymakers in their next monetary...
US West Texas Intermediate (WTI) crude oil prices remained under selling pressure for the third straight day on Friday and traded near the lower end of the weekly range, around the $67.80 region during the Asian session. The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, on Thursday delayed a planned supply increase by three months to April and extended a full halt to cuts by one year to the end of 2026. The announcements indicated that the cartel is concerned about a potential supply glut and slowdown in global demand, especially in China – the world's...