Economies

Doubts have emerged over the precious metals rally after a steep sell-off driven by a dollar rebound, but long-term structural demand drivers continue to support further upside.

Australia’s central bank raised rates for the first time since late 2023 amid strengthening price pressures, sending the Aussie higher.

The pair reached new highs after firm Australian inflation, but erases gains as the greenbacks recovers, with rate decisions by the Fed and the RBA looming.

The pair drops as the Japanese central bank see strong wage growth for next year, bolstering the chances of tightening just a week after the Fed cut rates.

The pair finds support as the contraction of the UK economy bolters the case for a rate cut by the Bank of England, but persistent inflation can keep it in cautious mode.

HKG33 finds support after consumer prices accelerated in November, but deflation fears persist

Oil prices fell over 4% as Israeli airstrikes in Iran avoided oil facilities, calming supply fears. Rising production levels have also added to oversupply pressures on the market.

Copper gets a double boost, since after the Fed’s jumbo cut, its Chinese counterpart announced a series of stimulus measures, including support for the ailing property sector

The Federal Reserve is expected to lower interest rates today, but there’s still debate about how much they’ll cut. Markets are leaning towards a half-point cut, with a 63% chance according to the CME FedWatch Tool. This decision comes at a tricky time, as stocks are near record highs, and a smaller cut could create uncertainty. JPMorgan says a quarter-point cut might dampen investor confidence, while BlackRock believes a larger…

Inflation data is taking centre stage this week as attention shifts from the slowing labour market. Economists expect the producer price index (PPI) for July to rise by 0.2%, similar to June's figures, indicating a modest annual increase. This stability suggests the Federal Reserve might consider cutting rates in September.

Last week saw significant market volatility due to worries over economic growth, yen carry trade issues, and a tech stock selloff. The S&P 500 initially dropped but recovered slightly, ending the week down 0.04% while maintaining a 12.04% gain for the year. Oil prices rose on geopolitical tensions, copper fell due to growth concerns, and gold slipped as traders took profits. Key upcoming data, including July’s CPI and Retail Sales,…