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 recovered from a dip around 146.80 during the early Asian session on Thursday (September 18th). The US dollar (USD) rebounded from a six-week low near 146.00 after the Federal Reserve (The Fed) cut interest rates by a quarter of a percentage point. The Fed decided to cut its benchmark interest rate at its September meeting on Wednesday, the first time since December, and hinted at the possibility of further cuts this year. Fed Chairman Jerome Powell highlighted growing signs of weakness in the labor market to explain why officials decided it was time to cut interest rates...
Oil prices weakened on Wednesday after data showing rising US diesel stockpiles fueled demand concerns and the US Federal Reserve cut interest rates as expected. Brent crude futures closed 52 cents, or 0.76%, lower at $68.22 a barrel, while US West Texas Intermediate crude fell 47 cents, or 0.73%, to $64.05. US crude inventories fell sharply last week, driven by a surge in exports and a sharp decline in imports, according to the Energy Information Administration (EIA) on Wednesday. However, rising distillate stockpiles fueled demand concerns and kept prices in check, analysts said. "It...
Gold prices surged to a record high on Wednesday (September 18) after the Federal Reserve cut interest rates by 25 basis points and signaled steady easing through the end of the year. Spot gold fell 0.2% to $3,681.39 an ounce, as of 2:31 PM EDT (18:31 GMT), after hitting a record high of $3,707.40 earlier in the session. U.S. gold futures for December delivery closed 0.2% lower at $3,717.80. The U.S. dollar continued its decline, making dollar-priced gold more attractive to holders of other currencies. "Gold's recent record highs continue to be a result of expectations for lower interest...
Oil prices weakened after three consecutive sessions of gains as traders assessed the latest US stockpiles data and awaited the Federal Reserve's interest rate decision later Wednesday. West Texas Intermediate (WTI) prices held around $64 per barrel after rising 3.4% in the previous three sessions. The commodity weakened as traders shrugged off the latest US stockpiles data, which showed crude inventories fell by 9.29 million barrels amid a significant increase in exports. However, adjustment factors surged and distillate inventories rose to their highest level since January, adding to the...
The US Dollar (USD) is showing signs of stabilization heading into Wednesday's FOMC, with modest gains against most of the G10 currencies as it attempts to claw back a portion of this week's losses, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report. USD clawing back a portion of this week's losses"The moves are lacking any clear catalyst and are suggestive of position squaring into the 2pm ET rate decision. Markets are broadly expecting a well telegraphed 25bpt cut that will need to be accompanied by a statement, forecast, and press conference that will justify...