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 USD/JPY pair declines on Tuesday to around 153.50 at the time of writing, down 0.40% on the day, as the Japanese Yen (JPY) attracts fresh safe-haven flows amid renewed global risk aversion. Fears of potential intervention from Japan's Ministry of Finance and the recent hawkish tone from Bank of Japan (BoJ) Governor Kazuo Ueda lend further support to the JPY. Ueda hinted last week that a rate hike could come by the end of this year or early next year, reinforcing expectations of a gradual policy shift by the BoJ. However, the Japanese Yen's upside remains limited. Uncertainty over the...
Gold slipped slightly Tuesday, pressured by a stronger U.S. dollar and lingering uncertainty over the Federal Reserve's next policy move. Spot gold fell 0.8% to $3,970.08 per ounce and U.S. Gold Futures declined 0.8% to $3,980.31 per ounce. The metal has struggled to hold above the $4,000 mark as the dollar extended gains, making bullion more expensive for overseas buyers. Gold pressured by stronger dollarThe dollar climbed to a three-month high against major currencies on Monday, underpinned by fading bets of another rate cut this year. Fed Chair Jerome Powell last week signaled that...
Silver fell below $48 per ounce on Tuesday, sliding for the third straight session, as investors weighed the outlook for Federal Reserve policy while assessing the impact of easing US-China trade tensions. Last week, the Fed delivered a widely expected 25 bps rate cut, though Chair Powell stressed that another move in December is not guaranteed. Markets now turn to key US data releases, including ADP jobs and ISM PMI reports, for further guidance. Meanwhile, improving trade relations reduced safe-haven demand for precious metals. Over the weekend, the White House announced that China would...
Silver (XAG/USD) weakened on Tuesday to around $47.70 per ounce, down 1.10% on the day, after attempting to extend its recent rally beyond $49.50. Selling pressure increased as the US dollar (USD) strengthened, supported by expectations of tighter monetary policy from the Federal Reserve (Fed). The silver metal weakened amid the firmer tone recently adopted by several Fed officials, including Chairman Jerome Powell, who stated that another interest rate cut in December is "not on the cards." The market currently prices a roughly 65% chance of a rate cut at the December meeting, according...
The US dollar held near a three-month high on Tuesday (November 4th) as a divided Federal Reserve prompted traders to reduce their bets on a rate cut, while the Japanese yen strengthened after a verbal warning from Tokyo officials. The pound approached its lowest level since April after British Finance Minister Rachel Reeves, in a rare speech ahead of her November budget, said the budget would contain "tough choices," signaling the possibility of extensive tax increases. The Australian dollar weakened after the Reserve Bank of Australia kept its benchmark interest rate unchanged at 3.60%,...