Iron Ore Prices Retrace 12% from Two Year Highs, Dragging Aussie Dollar Down

Iron ore prices have fallen over 12% from a two year high earlier this month over $US145 a tonne to $US127.5 on Tuesday. Prices had risen on expectations of healthy iron ore demand for winter restocking amongst growing optimism that Beijing’s latest round of stimulus to revive China’s troubled property market. China has continued to struggle; shipping has been impacted by the Red Sea attacks as a result commodity prices including iron ore have sold off. Commodity price sensitivity is … Continue reading “Iron Ore Prices Retrace 12% from Two Year Highs, Dragging Aussie Dollar Down”

Stocks Up 20% Globally, Best Since 2019, Can They Continue?

The MSCI’s world share index, a broad measure of global developed market equities, posted a 21.56% gain in 2023, its most in four years. The move was established in the run since October as investors bet central banks will begin cutting interest rates in 2024. The buying triggered short covering which exasperated the move higher. The big question as always with stocks, can they continue higher? There are many factors, the main one at this time is interest rates given … Continue reading “Stocks Up 20% Globally, Best Since 2019, Can They Continue?”

New China Draft Rules for Online Gaming Send Chinese Stocks Sharply Lower

Chinese gaming stocks are sharply lower Friday after the Chinese government announced new draft rules for online gaming industry. Tencent’s stock fell -12.35% to HK$274, NetEase dumped -24.60% to HK$122, and Bilibili (BILI) fell around 10% on the Hong Kong Stock exchange. The stocks continued to slide heading into the US opening. Netease fell to 81.69 -22.72 (-21.76%) Pre-Market. BILI 10.32 -1.25 (-10.80%) Pre-Market. The new rules are aimed curbing the amount of money and time players spend playing the … Continue reading “New China Draft Rules for Online Gaming Send Chinese Stocks Sharply Lower”

Iron Ore at Eighteen Month Highs as China Walks a Tightrope Trying to Save Property Market

Iron ore prices climbed to eighteen-month highs on expectations of healthy iron ore demand for winter restocking amongst growing optimism that Beijing’s latest round of stimulus will revive China’s troubled property market. December futures prices for iron ore cargoes with a 63.5% iron ore content for delivery in Tianjin rose to $139 per tonne the highest since June 2022. The benchmark January iron ore on the Singapore Exchange rose 1.4% to $US137.55 a tonne, up 2.7% for the week. The … Continue reading “Iron Ore at Eighteen Month Highs as China Walks a Tightrope Trying to Save Property Market”

Hong Kong’s Monetary Authority Keeps Rates in Lockstep with Fed at 16 Year High 5.75%

The Hong Kong Monetary Authority (HKMA), Hong Kong’s de-facto central bank, left its base rate charged through the overnight discount window unchanged at 5.75%, tracking action by the U.S. Federal Reserve. The latest move kept borrowing costs in the city to the highest level since January 2008. Hong Kong raises rates in line with the Fed due to the Hong Kong Dollar’s peg to the US Dollar. Immediately after the announcement the Hong Kong’s one-month interbank offered rate (Hibor) soared … Continue reading “Hong Kong’s Monetary Authority Keeps Rates in Lockstep with Fed at 16 Year High 5.75%”

Hong Kong’s Monetary Authority Raises Interest Rates in Lockstep with Fed to 16 Year High

The Hong Kong Monetary Authority (HKMA), Hong Kong’s de-facto central bank, raised its base interest rate charged through its overnight discount window unchanged at 5.75 per cent, tracking action by the U.S. Federal Reserve. Last meeting it raised its benchmark interest rate for a tenth time, following the US Federal Reserve. The latest move kept borrowing costs in the city to the highest level since January 2008. Hong Kong raises rates in line with the Fed due to the Hong … Continue reading “Hong Kong’s Monetary Authority Raises Interest Rates in Lockstep with Fed to 16 Year High”

Australia Trade Surplus Rises More Than Expected in May to $12.237 Billion

Australia posted a larger than expected trade surplus of A$11.791 billion in May, up from a downwardly revised AUD 10.45 billion in April, beating market forecasts of A$10.5 billion the Australian Bureau of Statistics reported. Exports rose more than imports. Shipments grew by 4.4% from April to A$57.77 billion, boosted by increases in non-monetary gold, with total exports to Australia’s largest trade partner China. rising by 9%. Imports rose 2.5% to a four-month high of A$45.98 billion powered by robust … Continue reading “Australia Trade Surplus Rises More Than Expected in May to $12.237 Billion”

Hong Kong’s One-Week Hibor Interest Rate Rises to Highest in 16 Years

Hong Kong interbank interest rates rose across all tenors on Friday. The overnight interbank offered rate rising the most, to the highest in four weeks. Overnight Hong Kong interbank offered rates (Hibor) jumped 63.5 basis points (bps) to 4.88%. One-week Hibor rose 62 bps to 4.92% its highest in nearly 16 years. The day before the Hong Kong Monetary Authority (HKMA), Hong Kong’s de-facto central bank, left its base interest rate charged through its overnight discount window unchanged at 5.50 … Continue reading “Hong Kong’s One-Week Hibor Interest Rate Rises to Highest in 16 Years”

Hong Kong’s Monetary Authority Kept Interest Rates in Lockstep With Fed, Hibor Continues to Rise

The Hong Kong Monetary Authority (HKMA), Hong Kong’s de-facto central bank, left its base interest rate charged through its overnight discount window unchanged at 5.50 per cent, tracking action by the U.S. Federal Reserve. Last meeting it raised its benchmark interest rate for a tenth time, following the US Federal Reserve. The latest move kept borrowing costs in the city to the highest level since January 2008. Hong Kong interbank offered rate (Hibor) continues to rise. Hong Kong raises rates … Continue reading “Hong Kong’s Monetary Authority Kept Interest Rates in Lockstep With Fed, Hibor Continues to Rise”

Chinese Electric Car Maker Xpeng Reports Bigger Loss, Puts Hopes on G6

Chinese electric vehicle maker Xpeng, who are based in Guangzhou announced disappointing Q1 earnings Tuesday sending the stock 5% lower. $XPEV reported a bigger Non-GAAP loss of -$0.37 EPS for each ADS, missing by $0.04. Revenue of $587.31 million (-45.9% Y/Y) missed by $125.36 million. Forecast deliveries and revenue are all forecasted to be over 35% lower than last year. Xpeng Q1 2023 Earnings Highlights XPEV -ADR Stock Market Reaction (Updated) “During the first quarter of 2023, I took actions … Continue reading “Chinese Electric Car Maker Xpeng Reports Bigger Loss, Puts Hopes on G6”