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...
Brent crude oil futures fluctuated between small gains and losses at around $64 per barrel on Monday, as traders awaited fresh reports on a possible global oil surplus. OPEC will release its monthly outlook Wednesday, alongside the IEA's annual forecast, which already projects a record glut for 2026. A monthly update from the IEA follows on Thursday. Crude has struggled this year, weighed down by expectations of oversupply as OPEC+ loosens production cuts while non-member producers keep adding barrels. Earlier this month, the alliance approved a 137,000 bpd increase for December, matching...
Silver surged on expectations of interest rate cuts Silver surged more than 5% to around $51 per ounce so far this week, supported by expectations of a near-term Federal Reserve rate cut amid signs of US economic weakness. US data last week pointed job losses in October, particularly in government and retail sectors, while consumer sentiment fell to a 3½-year low in early November. Traders are pricing in roughly a 64% chance of a 25-basis-point Fed cut in December, with Fed Governor Stephen Miran advocating a larger half-point reduction amid falling inflation and rising...
Silver prices (XAG/USD) have risen for three consecutive sessions and are hovering around $50.90/oz in Asia this morning. This "non-interest-bearing" metal is gaining traction as US economic uncertainty heightens expectations of a Fed interest rate cut. Fed Governor Stephen Miran's comments to CNBC that inflation is starting to ease—even opening up the option of a 50 bps cut in December (or at least 25 bps)—have further strengthened silver's bullish sentiment. Less than favorable data has also added fuel: October job losses (especially in the government and retail sectors) and consumer...
The US dollar strengthened slightly for the first time in a week. The trigger: the high probability that the US shutdown will end soon, so the market is hoping for economic data releases (such as NFP, CPI, etc.) to resume. The Bloomberg Dollar Spot Index rose 0.1%, while Treasury futures contracts were relatively flat as bond markets were closed for the US holiday. The yen was the weakest among the G10. The 1-month option price for the Bloomberg Dollar Spot Index rose to its highest level in almost a week, a sign the market is bracing for volatility when the data returns. The Senate has...
Gold edges higher in the early Asian session amid signs of a possible end to the U.S. government shutdown. The Senate cleared a key hurdle late Sunday after Democrats provided just enough votes to advance a measure designed to end the impasse. The Senate's next big step will be to send the measure back to the Republican-led House. If the resolution to end the shutdown materializes, a slew of delayed U.S. data could soon be released, says Fawad Razaqzada, market analyst for Global Macro at FOREX.com, in an email. This could provide greater clarity for the outlook of another Fed rate cut,...