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...
A Bloomberg gauge of the dollar rose late in New York trading alongside Treasury yields as investors look to the release of CPI data this week to gauge the Fed's rate-cutting path. Earlier, the yen rallied on a report that Bank of Japan officials may raise interest rates again this year regardless of domestic political instability. The Bloomberg Dollar Spot Index gains 0.2%, earlier whipsawing after release of preliminary payroll revisions. USD/JPY drops as much as 0.8% to 146.31, the lowest since Aug. 14, then erases most of the decline. Liberal Democratic...
Gold prices advanced to a record high on Tuesday amid rising optimism that the Federal Reserve is set to kick off what will likely be a series of interest rate reductions. Gold futures rose 0.2% to $3,683.70 per ounce, having traded above $3,700 earlier in the session. Spot gold was last up 0.3% at $3,645.73 per ounce, down from as high as $3,674.09. "Prices have been rising for three consecutive sessions, supported by increased bets on a wave of (Fed) rate cuts this year," ING said in a Tuesday note. The safe haven asset's price has soared about 40% since the start of the year, according...
Oil jumped after an Israeli attack in Qatar escalated the conflict in the Middle East, the source of about a third of the world's supplies, increasing the geopolitical risk premium for crude. West Texas Intermediate climbed about 1.5% to top $63 a barrel after the Israel Defense Forces conducted a strike in Doha targeting the senior leadership of Hamas, which has been declared a terrorist group by the US and Europe. Several blasts were heard in the city, according to media reports, and Qatar said the attack violated international law. The strike is the first...
Gold (XAU/USD) continued its record-breaking rally on Tuesday to a new all-time high near $3,660, marking the third consecutive day of gains and entering uncharted territory. At the time of writing, XAU/USD was trading around $3,650, up nearly 0.50% on the day. A generally weaker US dollar (USD) has fueled the rally, making gold more attractive to foreign buyers. At the same time, a series of disappointing US labor market data has reinforced speculation that the Federal Reserve (Fed) will cut borrowing costs at its September 16-17 meeting. The prospect of looser monetary policy has also...
The dollar hit a seven-week low on Tuesday as investors braced for revised US data that could indicate the labor market is in worse shape than initially estimated, strengthening the likelihood of a deeper Fed rate cut. The dollar weakened 0.7% against the Japanese yen to 146.32, its weakest level since mid-August, while the pound rose 0.2% to $1.3558. The euro weakened to $1.1752 after touching its strongest level since July 24. A Bloomberg news report that Bank of Japan officials believe benchmark interest rates could be raised again this year also contributed to the Japanese currency's...