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 EUR/USD pair trades at 1.1745 during Monday's European session, recovering from a pullback to 1.1720 earlier in the day. The common currency opened the week on a hesitant tone but is gathering momentum as the market shifts its focus from France's political crisis to the US Federal Reserve (Fed) monetary policy meeting due on Wednesday. On Friday, the Fitch rating agency downgraded France's debt ranking to A+, its lowest level on record, citing its uncertain political situation – President Emmanuelle Macron named Sebastien Lecornu as the third Prime Minister of his term last week –, and...
Gold (XAU/USD) struggles to capitalize on its intraday bounce from the $3,627-3,626 region and trades with a negative bias through the first half of the European session on Monday. Rising bets for a more aggressive policy easing by the Federal Reserve (Fed) keep the US Dollar (USD) depressed near its lowest level since July 24 and might continue to act as a tailwind for the non-yielding yellow metal. Apart from this, rising geopolitical tensions turn out to be another factor lending some support to the safe-haven commodity. The XAU/USD pair, however, remains confined in a one-week-old...
Gold (XAU/USD) attracts some dip-buyers near the $3,627-3,626 region during the Asian session on Monday, though it lacks follow-through and remains confined in a one-week-old range. Rising bets for a more aggressive policy easing by the US Federal Reserve (Fed) keep the USD depressed near its lowest level since July 24 and continue to act as a tailwind for the non-yielding yellow metal. Apart from this, rising geopolitical tensions turn out to be another factor lending support to the safe-haven precious metal. The XAU/USD bulls, however, seem reluctant to place aggressive bets and opt to...
Silver traded above $42 per ounce on Monday, staying close to 14-year highs as investors braced for an expected US Federal Reserve interest rate cut this week. Markets are pricing in about a 96% chance of a 25 basis point cut on Wednesday and roughly a 4% probability of a larger half-point move, following US data that signaled a cooling labor market and subdued inflation. Central banks in Canada and China are also expected to ease policy this week, while counterparts in Japan and the UK are likely to stand pat. On the geopolitical front, US and Chinese officials began talks in Madrid on...
The dollar was steady in early Asian trading as US-China trade talks entered a second day, with investors focused on this week's Federal Reserve policy decision. The greenback was mixed against major currencies and US equity-index futures were little changed after the benchmark S&P 500 closed flat on Friday. Asian contracts signaled declines at the open, while Japan's markets are closed for a holiday. Oil edged lower after President Donald Trump urged Group of Seven allies to impose tariffs on India and China for buying Russian crude. The key question for...