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Gold and silver continue their sharp sell-off following last Friday’s historic plunge, driven by market confidence in Kevin Warsh as the next Fed chair, which raises expectations for continued monetary tightening. Asian equities are under pressure, notably South Korea’s Kospi index triggering a circuit breaker after a 4% drop amid regional risk aversion. Meanwhile, China’s factory activity shows unexpected strength, supporting selective risk appetite in emerging markets despite global geopolitical tensions and rising fiscal concerns in India.
Key News Summary: The nomination of Kevin Warsh as Fed chair has strengthened the USD on expectations of a hawkish Fed stance. China highlights risks of a strong currency amid ongoing HKMA interventions to defend the Hong Kong dollar peg.
| Analysis Items | Analysis Content |
|---|---|
| Bullish/Bearish | USD bullish; CNY/HKD pressured but stable due to intervention |
| Market Impact | USD strength pressures gold/silver; HKD interventions limit downside; CNY cautious amid policy signals |
| Core Logic | Hawkish Fed outlook boosts USD; China’s currency controls temper RMB volatility despite growth data |
Key News Summary: South Korea stocks plunged over 4%, triggering a sidecar on the Kospi index, reflecting heightened regional risk aversion. US stock futures fell after sharp sell-offs in silver and bitcoin, adding uncertainty to tech and AI-related trades. Selective buying noted in US large caps ahead of key earnings (Amazon, Alphabet).
| Analysis Items | Analysis Content |
|---|---|
| Bullish/Bearish | South Korea bearish; US futures cautious with downside bias; selective US tech bullish near earnings |
| Market Impact | Korean market volatility may spill over Asia; US tech earnings week critical for sentiment; silver/crypto sell-off weighs on risk assets |
| Core Logic | Regional geopolitical and commodity shocks drive Asian equity weakness; US earnings focus creates bifurcated sentiment |
Key News Summary: China’s factory activity expanded at fastest pace since October per private PMI survey, beating official data, suggesting export sector resilience post-Lunar New Year. India projects modest fiscal consolidation amid increased infrastructure spending, but hikes in transaction taxes dampen local equity markets. European cities brace for transport strikes adding to economic disruption risks.
| Analysis Items | Analysis Content |
|---|---|
| Bullish/Bearish | China macro bullish for exports; India mixed with fiscal discipline but market negative reaction; Europe faces short-term disruption risks |
| Market Impact | Positive Chinese industrial data supports EM currencies and commodities; Indian fiscal policy leads to equity pressure; European strikes add uncertainty |
| Core Logic | Strong Chinese manufacturing counters global slowdown fears; India balances growth with fiscal prudence causing market jitters |
Key News Summary: Gold and silver prices plunged further by 5% after last Friday’s historic rout, triggered by Fed chair nomination easing fears over central bank independence and future rate cuts. Silver experienced its worst day since 1980 with a 30% drop previously reported. Oil remains supported above $70/bbl on Iran-related supply concerns but faces geopolitical uncertainties.
| Analysis Items | Analysis Content |
|---|---|
| Bullish/Bearish | Gold/silver strongly bearish short term; oil cautiously bullish but volatile |
| Market Impact | Precious metals sell-off pressures miners’ stocks (e.g., Newmont down); oil supported by Middle East tensions but vulnerable to demand concerns |
| Core Logic | Hawkish Fed expectations reduce safe-haven demand for gold/silver; oil driven by geopolitical supply risk premium |
Important News Summary: UK PM Starmer’s business delegation visit to China is seen as pragmatic engagement amid rising US-China tensions and Trump’s warnings against UK-China trade ties. EU-India free trade deal signed amidst shifting global trade alliances post-US influence decline. Mexico continues diplomatic talks to maintain oil exports to Cuba despite regional frictions. Japan accelerates deep-sea mining efforts to reduce rare-earth dependence amid strategic resource concerns.
| Analysis Items | Analysis Content |
|---|---|
| Bullish/Bearish | UK-China engagement cautiously bullish for regional trade; EU-India deal positive for global trade flows; geopolitical risks remain elevated in Latin America and Asia-Pacific |
| Market Impact | Trade realignments favor emerging markets integration; resource security drives Japan’s strategic initiatives affecting commodity sectors; political frictions sustain risk premiums globally |
| Core Logic | Global trade landscape evolving away from US dominance toward diversified blocs, influencing FX flows and sectoral commodity demand |
Disclaimer: This report is solely for information aggregation and market analysis and does not constitute any specific investment advice.