2024-12-20 12:02
Key takeaways The UK economy contracted again in October … …and higher wage growth and inflation stoked stagflation fears. Bank of England left Bank Rate unchanged but placed more weight on the weak activity data. Source: HSBC A sombre mood to end 2024 As expected, the UK economy has seen a resurgence of some old fears – reaccelerating inflation and slowing economic growth – in what may feel like a nightmare before Christmas for policymakers. For a second consecutive month, the economy contracted in October by 0.1% m-o-m, driven by broad-based weakness across all three sectors: services, industrial production, and construction. Indeed, that means growth for Q4 has started on soft footing, although activity surveys still pointed to expansion in November and December. We now expect the UK economy to grow 0.1% q-o-q in Q4 and by 0.8% overall in 2024, while the Bank of England expects 0.0% Q4 growth. In contrast, momentum in private sector wage growth reaccelerated to 5.6% 3m/3m annualised in October while the headline rate of inflation rose to 2.6% in November. However, we judge these prints to be less worrisome than they seem at first glance. To some degree, both were driven by base effects while inflation was impacted by higher motor fuel and tobacco duty announced in the October Budget. More positively for inflation, services price inflation held steady at 5.0% and broader labour market metrics have pointed to a continued slowing in labour demand. Surveys showed firms opting to not replace voluntary leavers, vacancies continued to fall, and surveyed pay expectations for 2025 remain at 4.1%. At its latest meeting the Monetary Policy Committee (MPC) saw the labour market as broadly in balance – suggesting that the Committee thinks the labour market is no longer placing upward pressure on inflation. Three turtle doves Those challenging data dynamics, and uncertainty ahead, were reflected in the 6-3 vote split from the MPC which opted to keep the Bank Rate on hold at 4.75% at the latest policy meeting. The three members who voted for a rate cut cited that current high interest rates were restricting activity, while another member saw the possibility of a more activist (faster) approach if activity data continued to disappoint. Bank Rate has been reduced by 0.5ppt in 2024 and markets expect only a further 0.5ppt drop in 2025. However, we think the MPC, at least for now, sticks with a stance whereby it cuts the Bank Rate by 0.25ppt cut per quarter. And from mid-2025, we think that pace of cuts can pick up, with Bank Rate ending next year at 3.25%. Ultimately, the speed of rate cuts in 2025 will depend on the balance of risks – specifically, the risk of fiscal policy changes helping keep inflation sticky, versus the possibility of persistent weak demand and continued labour market loosening. https://www.hsbc.com.my/wealth/insights/market-outlook/uk-in-focus/2024-12/
2024-12-20 08:06
Key takeaways As expected, the Federal Reserve cut the Fed funds rate by 0.25% to a range of 4.25 - 4.50%. However, its economic and rate projections, the meeting statement and Mr. Powell’s press conference were all more hawkish than expected. The Fed surprised markets as it now projects to cut rates only two times next year, as opposed to the four times it had forecasted in September. We now forecast a 0.25% rate cut at its March, June and September policy meetings in 2025. Fixed income returns could remain more muted and volatile given the reduction in rate cuts we expect, and the likely volatility in rate assumptions as we get more economic data and clarity about the policies of the next administration. When the dust settles, our view is that yields will be lower. The fundamentals remain constructive for US equities. Given the strong economy and secular drivers of profit growth, volatility could create an opportunity. However, with a less aggressive Fed easing cycle, the upside clearly has to come from earnings, not valuation multiples. The good news is that earnings expectations – especially outside of the Magnificent 7 – are low, providing a low bar to exceed. What happened? As expected, the Federal Reserve cut the Fed funds rate by 0.25%, taking the Fed funds rate range to 4.25 - 4.50%. However, for 2025, the Fed now projects to cut rates only two times, as opposed to the four times it had earlier forecasted in September. The FOMC has made it clear that they will ease more slowly, extending the Fed easing cycle into 2027. As per Summary of Economic Projections (SEP), inflation is expected to accelerate in 2025 to 2.5% from 2.4% in 2024. Moreover, the FOMC believes inflation risks are now more skewed to the upside. It now believes to achieve its 2% target in 2026, as opposed to 2025 that it forecasted at its September meeting. Median of the FOMC economic projections, December 2024 Source: Bloomberg, HSBC Global Private Banking and Wealth as at 18 December 2024. The Committee judges that the risks to achieving its employment and inflation goals are roughly in balance. Balance sheet reduction should continue as the FOMC will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities. The FOMC reported, “Recent indicators suggest that economic activity has continued to expand at a solid pace. Labour market conditions have generally eased, and the unemployment rate has moved up but remains low.” The SEP points to even faster, and above-trend economic growth. “Inflation has made progress towards the Committee's 2 percent objective but remains somewhat elevated”. The SEP points to elevated inflation, which can take longer to achieve its target inflation range. Changes were made to the FOMC forecasts, mostly reflecting the reality of faster economic growth and stickier inflation. Market-implied Fed policy expectations for 2025 Source: Bloomberg, HSBC Global Private Banking and Wealth as at 18 December 2024. Significantly, the FOMC changed its outlook for 2025 for the Fed funds rate. It now forecasts only 0.5% of further easing in 2025 as opposed to the 1% of easing it expected in September. For 2026, they kept a similar profile of rate cuts, reducing the Fed funds rate by 0.5%. Then in 2027, they have now included another 0.25% rate cut, taking the longer-term Fed funds rate to 3%, which is similar to their September forecast. We forecast 0.75% of rate cuts from the Fed in 2025, delivered in 0.25% steps at the March, June and September policy meetings. The FOMC forecast for 2024 real economic growth was revised up to 2.5% from 2.0% at the September meeting. Longer-term growth forecasts remain unchanged. Investment implications Dollar strength should continue as other central banks could ease more aggressively, causing USD to benefit from an attractive rate differential. The fundamentals remain supportive for US dollar-denominated investors. Economic growth remains healthy and well above the long-term trend. The technology revolution is just beginning and the productivity enhancing technologies that will diffuse throughout the economy should lift growth, reduce costs and expand profitability. The re-industrialisation of the US continues, and construction of new manufacturing facilities remains quite strong. Near/onshoring of jobs and the securing of supply chain remain a major theme for US corporations. This will continue to be a factor in stabilising the labour markets and creating wealth. Fixed income returns could remain more muted as rates should now fall more slowly with the extension of the monetary policy easing cycle. The fundamentals for US equities remain quite constructive. The recent fall can be a good opportunity to increase exposure. However, with a less aggressive Fed easing cycle, the slightly more hawkish tone on the monetary policy will have to be offset by increased fiscal stimulus (lower income tax rates) and better economic growth, which the Fed is forecasting. This would allow the earnings-led bull market to broaden out. From a sector perspective, interest rate relief will probably be less dramatic, and the growth imperative remains. Interest rate-sensitive sectors should see a less emphatic stimulus from lower market rates. The growth emanating from a technology revolution should be positive for the Technology, Communications Services, and Healthcare sectors. The increased demand for energy should be positive for Industrials. Lower interest rates, a positive slope to the yield curve, and less regulation should culminate in better economic growth, increased M&A and possibly more IPOs, all of which would be positive for the Financial sector. https://www.hsbc.com.my/wealth/insights/market-outlook/special-coverage/2024-12-19/
2024-12-19 12:02
Key takeaways The FOMC cut the US policy rate by 25bp but signaled fewer rate cuts in 2025; this likely means a “skip” in January. While the rate cut was widely anticipated, other aspects of the meeting were more hawkish than expected. We continue to look for a strong USD through 2025, a stance reaffirmed by the outcome of the December FOMC meeting. The Federal Open Market Committee (FOMC) cut rates by 25bp in their December meeting to a range of 4.25-4.50%, as widely anticipated, but other aspects of the meeting were more hawkish than expected. These included new dots projections, a new hawkish dissenter, a notable tweak to the statement, and a press conference that revealed the decision to cut today had been a close call. The USD was justifiably stronger in the wake of the meeting. The decision by the Federal Reserve to lower the policy rate by 25bp was unsurprising. In a Bloomberg survey of economists, 88% expected a 25bp cut, 10% expected unchanged policy, and an outlier 2% forecast a 50bp easing. The market was fully priced for 25bp also. However, in his press conference, Chair Powell indicated that this decision was a “close call”, suggesting the market’s near certainty may have overestimated the FOMC’s appetite for today’s cut. The accompanying statement was little changed, whether looking at the paragraph describing recent economic developments, or to the committee’s view that “the risks to achieving its employment and inflation goals are roughly in balance”. However, the statement now refers to the “extent and timing” of additional rate cuts whereas previously, it merely talked of the “extent”. Chair Powell noted that this change “signals that we are at or near a point at which it will be appropriate to slow the pace of further adjustments” (Bloomberg). The statement also revealed that the Fed’s Beth Hammack dissented from the decision to cut by 25bp, lending a somewhat hawkish footnote to the statement. The new set of dots projections adds to the less dovish tone. The median dot for 2025 was raised to 3.875% from 3.375% in the September release, higher than the median expectation of economists (Bloomberg), including HSBC’s. The Fed’s median projected path during 2025 was in line with market pricing ahead of the meeting, though the market has since repriced hawkishly. It was also shared by 10 members of the FOMC, a solid consensus. The long run dot was raised to 3.00%. Chair Powell was quizzed about whether the new dots incorporated expectations for policy change during President-elect Donald Trump’s second term. He said some FOMC members had begun to weave in possible policy changes, but others had not, and others chose not to reveal whether they had or not. His main takeaway though was that policy uncertainty is another reason for moving cautiously. Another interpretation, in our opinion, is that there may be some upside risks to the dots as other FOMC members update their forecasts in the months and quarters ahead. We retain our view of USD strength in 2025. This is still largely built on US exceptionalism, notably when compared to Europe. In 2024, that was captured in the shifts in interest rate differentials and echoed in a stronger USD. That has been evident again in the wake of the December FOMC. In 2025, other factors are also likely to play a part, including any developments in US trade policy, US deregulation, relative fiscal policy, and geopolitics. In the end, it may still come down to the data, but drivers may become more varied, and we expect the USD to remain on top. https://www.hsbc.com.my/wealth/insights/fx-insights/fx-viewpoint/flash-2024-12-19/
2024-12-17 12:02
Key takeaways China’s Central Economic Work Conference suggests more proactive policy support to come, especially on consumption. Stabilising housing and stock markets, a higher fiscal deficit, and moderately loose monetary policy will help. Business sentiment may be boosted by upholding the rule of law while fierce competition may see some relief. China data review (November 2024) Retail sales softened to 3.0% y-o-y in November from a high base from last year and an earlier launch of the 11.11 Singles Day this year. Durable goods sales from the trade-in programs were robust (home appliances: 22.2% y-o-y; car sales: 6.6%%), but not enough to turn around the slowing momentum in overall retail sales. Industrial production rose by 5.4% y-o-y in November, while manufacturing investment stayed generally buoyant, up 9.3% y-o-y. Some of the improvement in manufacturing production was likely helped by an ongoing boost from trade-in programs for equipment upgrading as well as some front-loading from exporters in anticipation of increased tariffs from the US next year. Infrastructure investment (ex-utilities) lost some strength in November, up 3.3% y-o-y vs 5.8% in October, given new guidance to allow a proportion of special local government bond funding to go towards debt swaps (RMB800bn each year for the next five years). The debt swap program may be stimulative for the economy as it can put cash into the hands of enterprises and employees. CPI inflation softened to 0.2% y-o-y in November despite a low base, as supply increases weighed on food prices. Meanwhile, core CPI remained muted at 0.3% y-o-y. On the producer front, PPI inflation rose to -2.5% y-o-y amid a demand pick up for industrial products, though more time and effort may still be needed to tackle excess capacity in some sectors. Exports rose by 6.7% y-o-y in November, including by 8% to the US, partly attributed to front-loading given risks of higher tariffs next year, and by 15% to ASEAN, likely helped by supply chain shifts. However, import growth dropped to -3.9% y-o-y in November, with iron and copper ore imports down 0.9% and 8.1% y-o-y in volume terms, and the import value of crude oil down 4.7% y-o-y. China’s Central Economic Work Conference 2024: Building resolve China’s top policymakers met for the annual Central Economic Work Conference (CEWC), 11- 12 Dec, to discuss the progress on economic growth and to set policy priorities for next year. The tone echoed the stronger policy stance taken at the Politburo meeting on 9 Dec which called for “extraordinary countercyclical” measures to support growth. Policymakers noted that external pressures have risen while the domestic environment faces its own challenges. They also reiterated their resolve to meet longer-term goals of transitioning the economy. No hard figures: As expected, the CEWC didn’t set quantitative economic and policy targets for 2025, which are often unveiled during the annual Two Sessions in March. Qualitatively, the goal is to ‘maintain steady economic growth’, which suggests the growth target may not deviate much from this year’s c5%. Fiscal policy to be proactive: The CEWC continued to give clear forward guidance around fiscal policy, noting that the fiscal deficit should be widened, while also increasing the issuance of ultra-long dated special central and local government bonds. This suggests a stronger fiscal stance is likely to come through next year. More aggressive monetary policy to come through: Echoing the language from the December Politburo meeting, the CEWC called for ‘moderately loose’ monetary policy, with cuts to required reserve ratios (RRR) and interest rates to be made at the appropriate time, while liquidity should remain ample. The People’s Bank of China (PBoC) may also purchase treasury bonds in the secondary market to inject liquidity. Stepped-up support for consumption: The CEWC press release noted that ‘special actions to boost consumption’ would be taken. These include boosting support for durable goods tradein and equipment upgrading programs, enhancing social safety nets (including employment support), and increasing basic pensions and financial subsidies for medical insurance. The CEWC also pledged to protect people’s livelihood and safeguard social stability. Stabilising housing and equity markets: As policymakers now see the housing market as systemically important to the economy, more forceful measures can be expected if current policies fail to shore up the market. As for the equity market, the latest development is the expansion of the private pension scheme from pilot cities to the entire nation starting from 15 Dec, while making index equity funds and government bonds eligible pension products. Preventing ‘involutionary competition’: The CEWC mentioned that a policy priority is to“comprehensively manage involution-style competition and regulate the behaviour of local governments and enterprises”. We believe this refers to fierce competition in several sectors which has contributed to the profit margin squeeze, over-supply, and deflationary pressure. Taken together, this could mean the government will prioritise consumption support to mitigate supply-demand imbalances, before considering more decisive measures to reduce capacity. New law to boost business sentiment: The Private Economy Promotion law will be enacted to help regulate local government behaviour, particularly regarding extraterritorial and profitdriven law enforcement. The ongoing RMB10trn debt swap has, to some extent, relieved local government debt repayment pressure, and thus reduced incentives for profit-driven law enforcement, but this new law will add an important layer of protection to private enterprises. What about the potentially increasing trade tensions? In addition to more policy support for domestic demand, China is determined to stay open and plans to expand unilateral opening-up in an orderly manner. Notably, China has expanded unilateral visa-waiver programs for more countries and visa-free transit policy to more ports. The next step of opening-up may progress towards fewer restrictions on trade and investment flows. Source: LSEG Datastream * Past performance is not an indication of future returns Source: LSEG Datastream. As of 13 December 2024 market close https://www.hsbc.com.my/wealth/insights/market-outlook/china-in-focus/2024-12/
2024-12-16 08:06
Key takeaways Rate differentials remain key to the broad USD; the Fed’s new dot plot likely in focus. The SNB surprises with a 50bp cut; the CHF weakened. The ECB delivers a dovish 25bp cut; EUR to weaken in 2025. Rate differentials remain key to the broad USD (Chart 1). With US CPI data for November coming in line with consensus expectations (rising 0.3% from a month ago) and the Federal Reserve (Fed) in its blackout period ahead of its policy meeting on 17-18 December, the USD is likely to take its cue from developments outside of the US. This includes a surprise 50bp cut by the Swiss National Bank (SNB), and a widely expected 25bp cut by the European Central Bank (ECB). On 12 December, the SNB delivered a bigger-than-expected rate cut of 50bp, lowering its key rate to 0.5%. The CHF weakened by as much as c0.8% against the USD and c0.7% against the EUR after the announcement before recovering some of the loss as SNB chief Martin Schlegel downplayed the likelihood of negative rates (Bloomberg, 12 December 2024). However, the SNB’s reluctance to cut rates below zero means the policy floor may be closer than previously thought. In turn, this means that, should economic conditions warrant further easing at that rate policy floor, FX intervention to weaken the CHF could be deployed. The SNB also repeated its willingness to do so. In the end, the SNB’s dovish stance and fundamentals may point to further CHF weakness. Source: Bloomberg, HSBC Source: Bloomberg, HSBC On the same day, the ECB delivered its fourth 25bp cut this year, bringing its key deposit rate to 3%. In a dovish move, the ECB removed the reference to policy needing to be “sufficiently restrictive for as long as necessary”, and it also lowered its GDP growth and inflation forecasts slightly (Bloomberg, 12 December 2024). While ECB President Christine Lagarde said the past analysis suggested the neutral rate could be in a range of 1.75-2.50%, our economists think if growth continues to disappoint and inflation is at target, the ECB might feel comfortable taking rates lower without necessarily having to agree on where the neutral rate is. That is why we think EUR-USD could face downside risks in 2025. The key for markets now is what will happen in 2025. If the Fed delivers a 25bp cut at its December meeting, as widely expected, market reaction is likely to be driven by its policy guidance, notably a new round of the Fed’s dot plot. Geopolitics could lend spikes of support to the “safe haven” currencies, like the USD, JPY, and CHF. https://www.hsbc.com.my/wealth/insights/fx-insights/fx-viewpoint/2024-12-16/
2024-12-16 07:05
Key takeaways Following the recent political drama in Europe, the ECB did its best not to add to the volatility and delivered the expected 0.25% rate cut, shunning any pressure to follow the Bank of Canada and Swiss National Bank which delivered 0.50% moves. Small-cap stocks are traditionally popular with investors looking for rapid earnings growth and superior returns. But at the index level, US small-caps have underperformed large-caps since 2008. Trade tariffs are back on the table post-US election – but depending on the details, not all economies will feel the impact equally. Chart of the week – EM policy divergence in 2025 The stars aligned for a broad range of EM asset classes to perform well in 2024, propelled by the prospect of Fed rate cuts, Chinese policy stimulus, and a backdrop of big valuation discounts. While this could continue in 2025, the outlook for EMs has recently become less certain, meaning investors need to be selective. In terms of risks, active fiscal policy, global trade uncertainty, and geopolitical tensions can stoke market volatility, and mean concerns over inflation are likely to persist for a bit longer in 2025. This unsettled backdrop is already creating policy divergence across major EM economies. China, for instance, has maintained a gradual approach to policy easing this year, with authorities last week formally shifting the monetary policy stance from “prudent” to “moderately loose”, helping to buoy stocks. This move came as policymakers debated the economic agenda for 2025 at the annual Central Economic Work Conference, paving the way for further easing. By contrast, India faces a more complicated trade-off between growth and inflation amid a cyclical slowdown and volatile inflation driven by food prices. While growth is expected to recover, and inflation normalise, policymakers currently remain cautious, with a “neutral” policy stance. And at the other end of the spectrum, Brazil’s central bank was forced to make a higher-than-expected 1% rate hike last week in its efforts to stabilise inflation. Put together, we think this divergent policy backdrop – with regions performing differently and facing different sets of challenges – means investors need to do their homework when deciding EM allocations. Market Spotlight Saints and sinners An interesting divergence in fiscal policy has emerged between a number of frontier and mainstream emerging markets – with previous fiscal “saints” and “sinners” switching roles. Some formerly fragile frontier economies have been embracing reforms, and boosting their sustainability metrics, just as several EMs have seen a deterioration. Frontier markets like Argentina, Ecuador, Ethiopia, Kenya, Nigeria, Pakistan, Sri Lanka, and Turkey have adopted reforms (often supported by IMF programs) aimed at mitigating vulnerabilities. Policies have included ending FX market distortions, reining in public debt by targeting primary surpluses, and accumulating foreign exchange reserves. Meanwhile, some mainstream EMs usually associated with stronger macroeconomic fundamentals and better institutional credibility have been pursuing looser fiscal policies – leading to a widening of budget deficits. Prominent examples include Brazil, Hungary, Indonesia, Mexico, Poland, and Thailand. In many cases, these looser policies have been deployed to stimulate domestic growth, and active fiscal policy will be a key feature of the global macro environment in 2025. For investors, it’s a further reminder that selectivity will be important in finding opportunities in EM and FM markets. The value of investments and any income from them can go down as well as up and investors may not get back the amount originally invested. Past performance does not predict future returns. For informational purposes only and should not be construed as a recommendation to invest in the specific country, product, strategy, sector or security. Any views expressed were held at the time of preparation and are subject to change without notice. Any forecast, projection or target where provided is indicative only and is not guaranteed in any way. Diversification does not ensure a profit or protect against loss. Source: HSBC Asset Management. Macrobond, Bloomberg. Data as at 7.30am UK time 13 December 2024. Lens on… ECB cuts again Following the recent political drama in Europe, the ECB did its best not to add to the volatility and delivered the expected 0.25% rate cut, shunning any pressure to follow the Bank of Canada and Swiss National Bank which delivered 0.50% moves. With Chair Powell having said recently that the Fed could afford to be “a little more cautious” in delivering rate cuts, it was unlikely that the ECB would throw caution to the wind. While recent eurozone survey data have shown renewed signs of weakness, they have not been the best guide to growth in the past few years. And although the latest CPI data suggest previously sticky service sector inflation may now be softening, more progress on this front would have been needed to prompt an aggressive move by the ECB. However, further easing is coming. With an uncertain political landscape and the potential for the US to impose trade tariffs, downside risks to growth mean the cutting cycle could either extend into H2 or happen faster. This supports the outlook for Bunds, even if a narrowing of the yield gap versus Treasuries would likely be required for a big rally to take hold. Selectivity in small-caps Small-cap stocks are traditionally popular with investors looking for rapid earnings growth and superior returns. But at the index level, US small-caps have underperformed large-caps since 2008. Today, valuation divergence between them has reached historic extremes, with average price-to-book valuations of 5.0 and 2.0 respectively. One factor driving this is company profitability. Research shows that, at more than 15%, the spread of Return on Equity (a measure of profitability) has opened up between them in recent years. Large caps have become more profitable, which is reflected in higher valuations, whereas small-caps have deteriorated. For investors, it’s a reminder that small-cap investing demands nuance. Looking globally to regions like Europe and China, smaller-cap stocks are more closely tied to macro-economic cycles and activity. That can make them volatile, but it also offers potentially attractive exposure to economic recoveries. Tariffs in perspective Trade tariffs are back on the table post-US election – but depending on the details, not all economies will feel the impact equally. In emerging markets, major exporters to the US like Mexico and Vietnam could face some of the greatest risks. But across Asia, the picture is mixed. Technology and electronics centres like South Korea, Taiwan, Malaysia, and Thailand don’t have the same US exposure as Vietnam, but they are more reliant on US trade than India and Indonesia. Perhaps surprisingly, the share of China’s value-added accounted for by US domestic demand is lower than India’s although the threatened tariffs on China are larger. Perversely, the potential for China-related US tariffs could help other Asian economies. First, they could benefit from trade diversion. Second, Chinese policy easing in the face of increased tariffs could have modest positive spillovers regionally. Combined with reasonable valuations in much of Asia, the fact that tariffs are not a given and, even if they are delivered, could take some time. Past performance does not predict future returns. The level of yield is not guaranteed and may rise or fall in the future. For informational purposes only and should not be construed as a recommendation to invest in the specific country, product, strategy, sector or security. Any views expressed were held at the time of preparation and are subject to change without notice. Index returns assume reinvestment of all distributions and do not reflect fees or expenses. You cannot invest directly in an index. Any forecast, projection or target where provided is indicative only and not guaranteed in any way. Source: JP Morgan, HSBC Asset Management. Macrobond, Bloomberg, Datastream. Data as at 7.30am UK time 13 December 2024. Key Events and Data Releases Last week The week ahead Source: HSBC Asset Management. Data as at 7.30am UK time 13 December 2024. For informational purposes only and should not be construed as a recommendation to invest in the specific country, product, strategy, sector or security. Any views expressed were held at the time of preparation and are subject to change without notice. Market review Risk markets lacked clear direction, with the US DXY dollar index strengthening on continued “US exceptionalism”. US Treasuries lagged eurozone government bonds on rising inflation jitters. The ECB lowered rates by 0.25%, dropping their reference to “sufficiently restrictive” monetary policy. US equities retreated from their highs, with the tech-driven Nasdaq outperforming. The Euro Stoxx 50 edged down, as the Nikkei climbed on a weaker Japanese yen, with technology stocks leading. China’s Shanghai Composite reversed early gains last week as investors digested the policy signals from the key meetings, while Hong Kong’s Hang Seng closed higher. South Korea’s Kospi index rebounded, whereas India’s Sensex declined. In Latin America, the Bovespa ended almost flat as Brazil’s central bank hiked rates by 1%. In commodities, oil prices and gold rallied, but copper edged lower. https://www.hsbc.com.my/wealth/insights/asset-class-views/investment-weekly/2024-12-16/
