International News 30/09
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The volume of gold imported into China through Hong Kong has decreased by 76% in August 2024
China's net gold imports through Hong Kong declined significantly in August 2024, reaching the lowest level observed in over two years. The decline was primarily attributed to the surge in gold prices, which had the effect of dampening buying interest in China, the world's largest gold consumer. In August, China imported just 6,245 tonnes of gold, a significant decline from the 25,659 tonnes imported in July. This represents the lowest level since April 2022. Furthermore, total gold imports through Hong Kong decreased by 48% to 16,377 tonnes in August. The aforementioned trends in China's gold imports have been influenced by factors such as the Federal Reserve's interest rate cuts and geopolitical uncertainties, resulting in a 29% increase in spot gold prices this year.
https://internasional.kontan.co.id/news/impor-emas-china-melalui-hong-kong-anjlok-76-di-agustus-2024
The US dollar has fallen as the initial boost from the data has receded, while the Swiss franc has gained following the rate cut.
Following an initial boost from strong economic data, the US dollar weakened, while the Swiss franc strengthened following a rate cut by the Swiss National Bank. The number of US weekly jobless claims fell to a four-month low, while corporate profits and gross domestic product demonstrated stronger growth than anticipated. However, the dollar index, which measures the US dollar against a basket of currencies, fell by 0.42%, while the euro rose by 0.41%. The Federal Reserve has indicated a change in focus away from inflation, but has implemented a larger-than-usual 50 basis point rate cut. The market anticipates a further reduction in interest rates at the Federal Reserve's November meeting. Following the rate cut by the Swiss National Bank, the dollar weakened by 0.55% against the Swiss franc, disappointing some who had expected a larger cut. Meanwhile, the Japanese yen demonstrated resilience against the US dollar, reflecting a divergence of views among Bank of Japan policymakers on the optimal timing for an additional interest rate hike.
https://www.cnbc.com/2024/09/26/dollar-firm-following-sharp-rebound-as-fed-speakers-eyed.html
Oil prices fall on prospects Saudi Arabia to raise output
On Thursday, oil prices declined following the announcement by Saudi Arabia that it would abandon price targets and increase production. Brent oil prices declined by 2.57% to $71.57 per barrel, while US oil prices fell by 2.63% to $67.86 per barrel. Saudi Arabia is preparing to increase production and will no longer pursue the price target of $100 per barrel for crude oil. Russia has indicated that it will not increase oil production unless there is a demand for it. Russia's Deputy Energy Minister has indicated that the cost of oil production is likely to increase, and that the country's oil production target may be subject to adjustment. The Chinese government has also committed to implementing additional fiscal spending measures in order to achieve its economic growth target of approximately 5%. This is in addition to the previously announced stimulus measures.