Nov 14, 2023: Gold prices fell below key levels in Asian trade on Tuesday, as traders pivoted into the dollar before U.S. inflation data due later in the day, which is widely expected to determine the path of interest rates. The yellow metal saw a heavy degree of profit taking in the past two weeks, which pushed prices to an over three-week low as the prospect of higher-for-longer U.S. rates dampened gold’s outlook. Spot gold fell 0.1% to $1,944.71 an ounce, while gold futures expiring in December fell 0.1% to $1,948.25 an ounce by 00:32 ET (05:32 GMT). US CPI…
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Nov 14, 2023: Most Asian stocks rose slightly on Tuesday, recovering a measure of recent losses as investors hunkered down before key U.S. inflation data, while Chinese markets lagged following weak lending activity data. Asian markets were nursing steep losses from the prior week, where a string of hawkish Federal Reserve signals and weak earnings had battered sentiment towards risk-driven assets. Concerns over an economic slowdown in China also weighed, as weak data prints from the country continued to batter sentiment. The technology sector was the worst hit by this trend, and saw the largest degree of buying on Tuesday.…
Nov 13, 2023: The dollar climbed to its highest levels in over a year against the Japanese yen on Monday, supported by a scaling back of expectations for U.S. Federal Reserve interest rate cuts next year. Japanese authorities were unusually quiet as the yen, down almost 14% this year, weakened again although markets remained alert to potential intervention to shore up the Japanese currency. Markets also digested news late on Friday that Moody’s (NYSE:MCO) has lowered its outlook for the U.S. credit rating to “negative,” while focus turned to Tuesday’s U.S. consumer price index. Fed policymakers, including Chair Jerome Powell,…
Nov 13, 2023: The U.S. dollar edged lower in early European trade Monday, with traders wary ahead of the release of key U.S. inflation data that could offer further clues on future Federal Reserve policies. At 03:20 ET (07:20 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, edged 0.1% lower to 105.627. U.S. consumer price data looms largeThe new week has started with the dollar on the backfoot as traders await the release, on Tuesday, of the U.S. consumer price data for October, for an update on the Fed’s progress in its battle…
Nov 13, 2023: Oil prices fell on Monday, erasing gains from Friday as renewed concerns over waning demand in the United States and China, coupled with mixed signals from the U.S. Federal Reserve, dented market sentiment. Brent crude futures for January were down 61 cents, or 0.75%, at $80.82 a barrel at 0800 GMT, while the U.S. West Texas Intermediate (WTI) crude futures for December were at $76.56, down 61 cents, or 0.79%. Prices gained nearly 2% on Friday as Iraq voiced support for oil cuts by OPEC+, but lost about 4% for the week, notching their third weekly losses…
Nov 13, 2023: Morgan Stanley said on Monday it expects the S&P 500 to end 2024 at 4,500, and predicted earnings recovery through the year. The target represents a 2% upside from current levels. The index on Friday closed 1.6% higher at 4,415.24. Strategists at the brokerage led by Michael Wilson expect a 7% uptick in earnings per share (EPS) for index companies next year, along with a 4-5% revenue growth and “modest” margin expansion amid easing labor costs. However, near-term earnings headwinds will persist into early next year before a “durable” recovery takes hold, Wilson said. Wilson sees strong…
Nov 10, 2023: Gold prices fell slightly on Friday and were set for steep weekly losses after a string of hawkish comments from Federal Reserve officials saw markets rethink bets for a pause in more interest rate hikes. Diminishing safe haven demand, in the face of waning concerns over the Israel-Hamas war, also kept appetite for gold largely muted. After a 10% jump in October, gold prices were hit with a heavy degree of profit taking in early-November, pulling the yellow metal to over three-week lows this week. But prices still remained around the mid-$1900 mark. Spot gold fell 0.1%…
Nov 10, 2023: The U.S. dollar slipped higher in early European trade Friday, but was heading for healthy weekly gains after Fed Chair Jerome Powell raised the possibility of further rate hikes to combat inflation. At 03:20 ET (07:20 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, edged 0.1% lower to 105.727, remaining on course for a gain of almost 1% this week. Hawkish Powell boosts dollarThe dollar has received a boost after Fed chief Powell warned on Thursday that the U.S. central bank stood ready to hike rates further to combat inflation,…
Nov 10, 2023: Major Asian chipmaking stocks sank on Friday, tracking a steep decline in Semiconductor Manufacturing International Corp (HK:0981) after China’s biggest chipmaker logged a 80% slide in its quarterly profit amid worsening demand. SMIC’s profit attributable to owners fell to about $94 million in the three months to September 30, tumbling from the $470.8 million seen in the same period last year. Quarterly revenue only fell 15% to $1.62 billion, while the chipmaker’s gross margin nearly halved to 19.8% from 38.9% last year. The firm forecast an even lower gross margin in the fourth quarter, and flagged much…
Nov 10, 2023: Thursday saw a dip in Brent crude prices due to reduced energy demand in the United States. However, robust global consumption continues to counterbalance this slump. This information comes amidst ongoing risks to production stability due to tight supply strategies from key producers and potential disruptions from the Israel-Hamas conflict. Despite the current weakness in oil prices, a rebound is expected. Mark Haefele of UBS Global Wealth Management views the current situation as an opportunity for risk-takers. He suggests leveraging long positions on longer-dated Brent contracts, aiming to capitalize on the predicted price rise. The oil market…
