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...
EUR/USD moved lower near 1.0550 during the Asian trading hours on Thursday. The pair's decline could be attributed to the US Dollar (USD) improvement amid cautious sentiment surrounding the Federal Reserve's (Fed) December interest rate decision, following Wednesday's solid inflation data. Markets may witness thin trading due to the US Thanksgiving holiday. The latest US inflation report indicated solid growth in consumer spending in October, but also highlighted stagnation in the progress towards lowering inflation, keeping the Fed on guard. The US Personal Consumption Expenditures (PCE)...
Gold fell below $2,630 an ounce on Thursday (11/28), paring recent gains as investors continued to assess the latest U.S. economic data. Both PCE and core PCE prices showed that inflation has stalled, reinforcing the Federal Reserve's cautious stance on further interest rate cuts. Additional data suggested the economy remains strong, with the release of the second estimate of third-quarter GDP, while employment data pointed to continued resilience in the labor market, with the number of Americans filing for unemployment benefits falling below expectations. The data further limits the Fed's...
Silver price (XAG/USD) extends its losses for the second consecutive day, trading around $29.90 per troy ounce during the Asian session on Thursday. The decline in Silver prices can be attributed to safe-haven flows diminishing amid easing geopolitical tensions in the Middle East. A ceasefire between Israel and the Lebanese armed group Hezbollah was successfully upheld on Wednesday, following a deal mediated by the United States (US) and France. This truce has allowed people in the border areas, devastated by 14 months of conflict, to begin returning to their homes. Source: FXStreet
The Japanese Yen (JPY) weakens slightly against its American counterpart during the Asian session on Thursday and erodes a part of the recent strong gains to a five-week top touched the previous day. In the absence of a fresh fundamental catalyst, the intraday JPY slide is more likely to remain limited amid speculation that the Bank of Japan (BoJ) may hike interest rates again in December. Furthermore, US President-elect Donald Trump's tariff threats and geopolitical risks could underpin the safe-haven JPY. Meanwhile, traders have been dialling back on the so-called "Trump trades"...
The Australian Dollar (AUD) holds steady against the US Dollar (USD) following the release of stronger-than-expected Private Capital Expenditure on Thursday. Australia's total new capital expenditure rose by 1.1% quarter-on-quarter in the third quarter, surpassing market expectations of a 0.9% increase and rebounding from a 2.2% decline in the previous quarter. However, the AUD/USD pair may face downward pressure as the United States (US) is set to unveil additional measures on Monday aimed at curbing China's ability to advance in artificial intelligence technology. Given the close trade...