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According to Hong Kong Stock Exchange filings, HSBC Holdings (00005.HK) repurchased 358,400 shares on the Hong Kong Stock Exchange on September 2 for HK$57.7 million; on the same day, it repurchased a total of 10,000 shares on other exchanges for £153,889.54.On September 3rd, it was reported that South Koreas semiconductor exports surged 209% year-on-year in August, reaching a record $46.65 billion, accounting for 47.5% of total merchandise exports that month. This was mainly driven by demand for artificial intelligence infrastructure. However, such rapid growth has also raised concerns about future trends. Moodys Analytics economist Dave Chia stated, "A gradual slowdown is manageable, but a sudden halt is another matter, because the South Korean economy is already operating at two speeds, and the industries that will need to fill the growth gap are precisely those currently under pressure." Monetary policy may also limit the buffer. The Bank of Korea raised interest rates for the second consecutive month in August, and Chia warned that if monetary policy continues to tighten while chip demand cools, then "this windfall will fade when domestic demand is insufficient to take over." Other more traditional industries are also struggling with the pressure, with automobile exports falling 29.8% year-on-year in August. Chia also stated that factors such as US tariffs and the shift of production to US factories constitute more persistent headwinds.The China Earthquake Networks Center automatically determined that an earthquake of approximately magnitude 4.2 occurred near Gar County, Ngari Prefecture, Tibet, at 16:16 on September 3. The final result is subject to the official rapid report.The final reading of the UKs August services PMI will be released in ten minutes.On September 3, local time, Ding Xuexiang, member of the Standing Committee of the Political Bureau of the CPC Central Committee and Vice Premier of the State Council, co-chaired the 13th meeting of the China-Russia Investment Cooperation Committee with Russian First Deputy Prime Minister Manturov in Vladivostok. Ding Xuexiang offered suggestions for further deepening bilateral cooperation: First, strengthen planning and policy guidance, conduct in-depth industrial alignment and project promotion, and jointly support the deepening and solidifying of investment cooperation between enterprises of both sides. Second, promote the implementation and effectiveness of key projects, effectively leverage their demonstrative role, and continuously enhance the scale and level of investment cooperation between the two countries. Third, expand the breadth and depth of cooperation, continuously consolidate cooperation in processing and manufacturing, engineering and infrastructure, and strengthen pragmatic cooperation in more areas such as green industries and the digital economy. Fourth, strive to resolve outstanding difficulties and problems, properly address the practical concerns of enterprises of both sides, and jointly create a better business environment.

Gold Price Prediction: XAU/USD bears at $1,650 on Fed hawkishness and China news

Daniel Rogers

Sep 19, 2022 14:34

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During early Monday morning in Europe, the gold price (XAU/USD) maintains a position close to the intraday low at $1,670. In doing so, metal prices endure the weight of a stronger U.S. dollar amidst a sluggish session caused by Japanese and British vacations. The cause may be related to the Fed's hawkish bets and China-related news stories.

 

US Dollar Index (DXY) reverses a two-day slump while posting intraday gains of 0.18 percent at 109.85 as of press time. Indicators of the U.S. dollar's value versus the six major currencies have recently been buoyed by the University of Michigan's September consumer sentiment report and the market's positive expectations on the Fed's next move. Consequently, the probability of a 75-basis-point (bps) rate hike by the Federal Reserve increased to 80%, while the market's estimates of a one-percentage-point increase in the Fed rate rose to 20% at the latest.

 

US President Biden stated elsewhere, "I'm more positive than I've been in a long time." The national leader also claimed that inflation will be brought under control. On the same line are the covid updates from China, which have unlocked Dalian and Chengdu while observing zero coronavirus cases in Beijing and one, as opposed to zero the day before, outside of Shanghai's quarantine zone. However, US President Biden's willingness to support Taiwan in the event that China assaults Taiwan and hawkish expectations for the Federal Reserve appear to weigh on the steel price ahead of the major monetary policy pronouncements.

 

In addition, the People's Bank of China (PBOC) reduces the 14-day reverse repo rate by 10 basis points to 2.15 percent. "With no maturing reverse repos on Monday, the Chinese central bank injects 12 billion yuan," reports Reuters. The same might have indicated that the dragon nation is not in recovery mode and requires more rate cuts than rate raises, which could have caused the gold price to plummet. The cause is China's position as one of the world's largest gold consumers.

 

In light of this, the S&P 500 Futures post modest losses while mirroring Wall Street's Friday close. Notably, the selling in Japan curbs bond movements in Asia, but yields are robust near the multi-day high due to fears of a recession and hawkish Fed views.

 

Moving forward, a light economic calendar and important market holidays may limit intraday XAU/USD price fluctuations. However, bears are expected to maintain control because to aggressive Fed expectations, which, if dashed, might defy the bearish chart pattern and spark the long-awaited rally.

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