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...
Oil remained in the green zone on Tuesday (February 10th), as the market refused to abandon the Middle East risk premium. As of 13:07 GMT (20:07 WIB), Brent rose +0.4% to $69.32/barrel, while WTI rose +0.2% to $64.51/barrel. The primary fuel source remains the same: the Strait of Hormuz. US maritime authorities have issued guidance for US-flagged vessels passing through to stay as far away from Iranian territorial waters as possible and to verbally refuse any requests for boarding from Iranian authorities. Although only "guidance," the market interpreted it as a risk signal as Hormuz is a...
Gold held above the psychological $5,000 level at the start of the week, supported by a combination of factors that are "right" for the precious metal : physical demand from China, expectations of lower US interest rates, and a weakening dollar. The main trigger came from weekend data showing the People's Bank of China (PBOC) again adding to its gold reserves. This means China has recorded gold purchases for the 15th consecutive month, indicating that demand remains strong amid fiscal concerns and global economic shutdowns. From the US side, the market is also increasingly betting that the...
Oil prices fell about 1% on Monday as concerns about conflict in the Middle East eased slightly. The market calmed after the US and Iran agreed to resume talks on Tehran's nuclear program, reducing fears of imminent supply disruptions. Brent fell about 67 cents to $67.38 per barrel, while WTI weakened 61 cents to $62.94 per barrel. Market participants believe that as long as the dialogue remains active, the likelihood of sudden supply disruptions is smaller at least temporarily. The talks in Oman were described as "positive" by both sides, although significant differences remain. Most...
Gold prices are still struggling to turn an intraday rebound into a sustained rally. After briefly falling to $4,654 (a four day low) and rebounding, prices were again rejected near $4,900. In the European session on Friday (February 6), spot gold was trading around $4,859 per ounce. Today's gold rally came from a shift in global risk sentiment. As stock markets moved erratically and investors tended to be defensive, capital flows to safe-haven assets returned and gold was the beneficiary. At the same time, signs of weakness in the US labor market maintained market expectations that the Fed...
Oil prices moved slightly higher in a volatile session on Friday, as investors assessed the direction of nuclear negotiations between the United States and Iran. Price movements appeared sensitive to every headline, reflecting a market that remains "vulnerable to change direction" amid geopolitical tensions. In New York, West Texas Intermediate (WTI) traded above $63 per barrel. The market briefly rallied after Iranian Foreign Minister Abbas Araghchi called the negotiations a "good start." However, the euphoria was short-lived, as a Wall Street Journal report indicated that Tehran still...