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 dollar weakened on Tuesday ahead of a series of central bank meetings that are likely to lead to interest rate cuts in the US and as investors continued to monitor President Donald Trump's visit to Asia, hoping for a trade deal with China. The yen strengthened more than 0.6% to 151.855 per dollar ahead of this week's Bank of Japan meeting, where the central bank is expected to keep interest rates unchanged, but focus will be on whether it provides any clues about the timing of the next hike. Comments from US Treasury Secretary Scott Bessent boosted the yen as he called for "sound...
Gold plunged more than 2% to a three-week low on Tuesday (October 28th), as optimism over easing trade tensions boosted risk appetite and dented demand for bullion as a safe-haven asset, while investors shifted their attention to this week's Federal Reserve policy meeting. Spot gold prices fell 2% to $3,899.94 per ounce at 08:57 GMT, hitting their lowest level since October 6th. US gold futures for December delivery fell 2.6% to $3,915.30 per ounce. "Hopes to avoid a full-blown trade war between the US and China... (are) driving a rally in risk assets like stocks. On the other hand, this...
Oil prices plunged 2% on Tuesday (October 28th), marking a third straight day of declines as investors assess the impact of US sanctions on Russia's two largest oil companies, as well as a potential OPEC+ plan to increase production. Brent crude fell $1.29, or 2%, to $64.33 per barrel at 08:56 GMT. US West Texas Intermediate crude fell $1.20, or 2%, to $60.11. "Traders are weighing progress in US-China trade talks and the broader supply outlook," ANZ said in a morning note. The lower prices come after Brent and WTI posted their biggest weekly gains since June last week, in response to US...
The Australian dollar (AUD) rose to around $0.656 on Tuesday, its highest level in nearly three weeks. This increase was primarily due to the weakening US dollar (greenback). US market participants await the Fed's decision on Wednesday, and many have already set expectations that the benchmark interest rate will be cut by 25 basis points. Positive sentiment regarding the possibility of a US-China trade deal has also slightly reduced demand for safe-haven assets like the US dollar, giving the AUD more room to move. Domestically, the Australian market is now awaiting two important data:...
Gold clawed back some losses after plunging below $4,000 an ounce on Monday as progress in US-China trade talks sapped demand for haven assets. Bullion edged higher on Tuesday after tumbling 3.2% in the previous session as negotiators from Washington and Beijing said they'd struck a series of agreements on issues including tariffs and export controls. Treasuries moved lower even as traders stuck to bets that the Federal Reserve is set to loosen monetary policy this week, with the higher yields weighing on demand for non-interest bearing gold. Gold has pulled...