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Gold Spot

Gold prices gained on Wednesday following a steep fall in previous sessions as concerns over the coronavirus outbreak and its impact on global economy raised hopes of interest rate cuts by major central banks.

Technical Resistance: 1654/1675

Technical support: 1634/1621

 

Market headlines:

  • Wall Street falls more slowly as investors parse coronavirus fears
  • South Korea central bank keeps rates on hold despite coronavirus risks
  • Hong Kong flags record budget deficit as virus, protests cripple economy
  • USDMYR traded at 4.2235

 

Economic data:

  • 27 February 2020 Malaysia time 3:30 pm – U.K. Nationwide HPI (YoY)
  • 27 February 2020 Malaysia time 9:30 pm – U.S. Core Durable Goods Orders (MoM) (Jan)
  • 27 February 2020 Malaysia time 9:30 pm – U.S. GDP (QoQ) (Q4)

 

Wall Street falls more slowly as investors parse coronavirus fears

The S&P 500 fell for a fifth straight day on Wednesday and while its decline was slower than the last few days, the session was volatile as investors reacted to headlines about coronavirus and sought to gauge its economic fallout.

 

South Korea central bank keeps rates on hold despite coronavirus risks

South Korea’s central bank kept interest rates unchanged on Thursday, dashing expectations for a cut, even as the rapid spread of the coronavirus in Asia’s fourth-largest economy threatened to derail growth. The Bank of Korea’s policy board held the base rate steady at 1.25%

 

Hong Kong flags record budget deficit as virus, protests cripple economy

Hong Kong unveiled a record budget deficit on Wednesday, pledging cash handouts to residents and business tax breaks to soften the blow to the recession-hit economy from often-violent protests and the coronavirus. The Chinese-ruled city recorded its first budget deficit in 15 years in 2019-20, at HK$37.8 billion ($4.85 billion), or about 1.3% of gross domestic product (GDP).

 

Source: Bloomberg, CNBC, Reuters