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Posts tagged as U.S. Federal Reserve

Chinese shares slip over Fed dovish stance at next meet

Chinese shares edged lower on Tuesday as investors took profits after major stock indexes closed near 6-1/2 month highs in the previous session, but the downside was limited by the expectation that the U.S.
Image Credit: Pixabay investors took profits after major stock indexes closed near 6-1/2 month highs in the previous session, but the downside was limited by the expectation that the U.S. Federal Reserve would take a dovish stance at its meeting this week.At the midday break, the Shanghai Composite index was down 0.22 per cent at 3,089.50. China’s blue-chip CSI300 index was down 0.37 per cent. Both indexes closed near 6-1/2 month highs on Monday.
Hong Kong fell 0.46 per cent to 11,620.81, while the Hang Seng Index was down 0.25 per cent at 29,334.61. The smaller Shenzhen index was unchanged for the day and the start-up board ChiNext Composite index was higher by 0.12 per cent. Investors are looking to the Fed policy meeting to see whether policymakers have sufficiently lowered their interest rate forecasts to more closely align their “dot plot”, a diagram showing individual policymakers’ rate views for the next three years.
In contrast to broader market declines, nuclear power-related stocks surged after environmental impact assessments (EIA) for two nuclear power plant projects were submitted for approval to regulators on Monday, a vital stage in the resumption of China’s atomic energy programme after a three-year halt in new approvals. State-owned China National Nuclear Power jumped as much as 10 per cent to its highest since April 2018, before trimming gains.
It was last up 2.29 percent.Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.05 per cent, while Japan’s Nikkei index was down 0.16 per cent. The yuan was quoted at 6.7162 per U.S.dollar, 0.04 per cent weaker than the previous close of 6.7135. The largest percentage gainers on the main Shanghai Composite index were Lanzhou LS Heavy Equipment Co Ltd, up 10.09 per cent, followed by Hunan Chen Dian International Development Co Ltd, gaining 10.04 per cent, and Beijing Teamsun Technology Co Ltd, up by 10.04 per cent.CGN Power Co LtdChina Gas Holdings Ltd, which has fallen 4.44 per cent, Guangzhou Automobile Group Co Ltd, which has lost 2.8 per cent, and Shenzhou International Group Holdings Ltd, down by 2.6 per cent.In Hong Konggainer on the Hang Seng was Sino Biopharmaceutical Ltd, up 5.27 per cent, while the biggest loser was Shenzhou International Group Holdings Ltd, which was down 2.65 per cent.

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Palladium breaks $1500 level on supply troubles; weak dollar lifts gold

Palladium prices broke above $1,500 for the first time on Wednesday due to a prolonged supply deficit, while gold rose to a fresh 10-month high as the dollar struggled before the U.S.
Minutes of Fed’s Jan meeting due at 1900 GMT.Palladium up 19 percent this year, among best performing metals.ReutersGetty ImagesPalladium prices broke above $1,500 for the first time on Wednesday due to a prolonged supply deficit, while gold rose to a fresh 10-month high as the dollar struggled ahead of the U.S. Federal Reserve’s policy meeting minutes.Palladium is crucial in the making of catalytic converters used in exhaust systems of vehicles, and an improvement in demand from the auto sector has supported the metal’s surge.”Demand (for palladium) is increasing year by year because of catalyst demand for gasoline engines.
Environmental requirements are getting stronger, which means more palladium is needed in (manufacturing) a car,” said Yuichi Ikemizu, Tokyo branch manager at ICBC Standard Bank.Furthermore, the supply deficit is likely to widen this year as stricter emissions standards increase demand for catalytic converters, Britain-based autocatalyst manufacturer Johnson Matthey said last week.
Spot palladium rose to an all-time high of $1,500.50 per ounce and was 0.7 percent higher at $1,490 as of 0800 GMT. The autocatalyst metal has gained almost 19 percent so far this year, making it one of the best performing metals.Gold prices hit their highest since April 19, 2018 as the dollar was capped on falling U.S.
Treasury yields and optimism surrounding trade talks between the United States and China.U.S. President Donald Trump said on Tuesday that trade talks with China were going well and suggested he was open to pushing off the March 1 deadline to complete negotiations.
Most investors expect uncertainties over U.S.China trade talks to end this week, which will weaken the dollar and support gold, said Hareesh V, head of commodity research at Geojit Financial Services.Progress in trade discussions between the world’s top two economies has whisked off the safe-haven appeal for the dollar, making gold more attractive to investors.Spot gold was up 0.1 percent at $1,342.46 per ounce after rising to a high of $1,346.73 earlier in the session.U.S.gold futures were steady at $1,345.40.Investors are now looking ahead to the release of U.S.Federal Open Market Committee’s minutes from its Jan. 29-30 policy meeting at 1900 GMT.”The dovish shift in U.S.Federal Reserve language over the year-to-date has improved the fundamental outlook for gold prices,” Fitch Solutions said in a note.”A less steep trajectory for U.S. rate hikes bolsters our existing view that U.S. dollar gains are behind us and that this will help put a floor under gold prices.”Spot gold may peak around a resistance at $1,351 per ounce, as suggested by a projection analysis and a rising trendline, according to Reuters market analyst Wang Tao.Among other precious metals, platinum was down 0.2 percent at $815.63 per ounce, while spot silver was up 0.2 percent at $16.01.

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