Gold-related stocks were among the biggest decliners in the Hong Kong market. At the time of writing, LINGBAO GOLD (03330) fell 3.88% to HK$21.3; ZIJIN MINING (02899) dropped 3.61% to HK$37.42; CHINAGOLDINTL (02099) declined 3.27% to HK$171.3; SD GOLD (01787) was down 3.16% to HK$28.84.
The sell-off was triggered by a hotter-than-expected U.S. Producer Price Index (PPI) report, which has intensified market expectations for further Federal Reserve interest rate hikes. Market pricing now indicates a roughly 50% probability of a 25-basis-point rate increase this year.
Data released by the U.S. government on Wednesday showed that the PPI for April rose 6% year-over-year, marking the highest level since December 2022. The core PPI increased 5.2% year-over-year, with both figures significantly surpassing market forecasts. The surge was driven by rising energy and transportation costs, while services inflation hit a four-year high.
In a separate development, the U.S. Senate has approved the appointment of a new Federal Reserve Governor for a 14-year term. Following the completion of the White House signing process, the appointee will officially assume the role, succeeding the current Chair whose term concludes on May 15th.
Gold-related stocks were among the biggest decliners in the Hong Kong market. At the time of writing, LINGBAO GOLD (03330) fell 3.88% to HK$21.3; ZIJIN MINING (02899) dropped 3.61% to HK$37.42; CHINAGOLDINTL (02099) declined 3.27% to HK$171.3; SD GOLD (01787) was down 3.16% to HK$28.84.
The sell-off was triggered by a hotter-than-expected U.S. Producer Price Index (PPI) report, which has intensified market expectations for further Federal Reserve interest rate hikes. Market pricing now indicates a roughly 50% probability of a 25-basis-point rate increase this year.
Data released by the U.S. government on Wednesday showed that the PPI for April rose 6% year-over-year, marking the highest level since December 2022. The core PPI increased 5.2% year-over-year, with both figures significantly surpassing market forecasts. The surge was driven by rising energy and transportation costs, while services inflation hit a four-year high.
In a separate development, the U.S. Senate has approved the appointment of a new Federal Reserve Governor for a 14-year term. Following the completion of the White House signing process, the appointee will officially assume the role, succeeding the current Chair whose term concludes on May 15th.