2023-12-06 15:39

HONG KONG - In a significant move to deepen financial ties between Asia and the Middle East, CSOP Asset Management has launched the first-ever CSOP Saudi Arabia ETF on the Hong Kong exchange. The fund, which debuted with an impressive initial capital of $1 billion, is part of broader efforts to foster global investment engagements that align with the economic diversification goals of Saudi Vision 2030. The Public Investment Fund, Saudi Arabia's sovereign wealth fund, played a critical role as a major anchor investor in this pioneering initiative. This launch marks a key milestone for CSOP Asset Management, a subsidiary of China Southern Fund Management, reflecting the growing interest in strengthening economic relationships between regions. Hong Kong's Chief Executive John Lee has been actively pursuing closer ties with Middle Eastern countries, particularly Saudi Arabia, to spur economic growth. The Securities and Futures Commission's Christina Choi emphasized the importance of regulatory collaboration to introduce more Hong Kong funds into the Saudi market. Meanwhile, Tony Wong from CSOP Asset Management noted the balanced origins of investment in the new ETF and anticipated an uptick in market liquidity. In a related development, discussions are underway between the Shenzhen Stock Exchange and Saudi Tadawul Group to create an ETF Connect scheme. This scheme would facilitate cross-listing opportunities for ETFs on Chinese and Hong Kong exchanges, further integrating the financial markets of both regions. The concerted efforts by various stakeholders underscore a strategic push to enhance financial cooperation and market access across continents. The introduction of the CSOP Saudi Arabia ETF is expected to open new avenues for investors and contribute to the dynamic landscape of international finance. https://www.investing.com/news/cryptocurrency-news/csop-asset-management-unveils-1bn-saudi-arabia-etf-in-hong-kong-93CH-3250809

2023-12-06 15:19

LUXEMBOURG - Société Générale has made a significant entry into the digital currency space with the introduction of its own stablecoin, named EUR CoinVertible, on Luxembourg's Bitstamp exchange. This move places the French banking giant within the $130 billion market that is currently led by major players like Tether and Circle. The launch through SocGen Forge marks an important step in providing a euro-denominated stablecoin option amid a landscape largely dominated by USD-based alternatives. Jean-Marc Stenger of SocGen Forge highlighted the importance of EUR CoinVertible in diversifying and strengthening the cryptocurrency ecosystem. The stablecoin distinguishes itself with broad trading availability and is fully backed by the euro, which could make it a valuable tool for settling digital asset trades. This development is part of a broader shift as traditional financial institutions increasingly adopt blockchain technology. EUR CoinVertible is also setting a standard for compliance, aligning with upcoming UK initiatives and the EU's Markets in Crypto-Assets (Mica) regulations, which are set to be enforced next year. Its introduction sets a precedent for compliance that has been missing in many of its peers. In a recent example of institutional engagement with the new stablecoin, Axa Investment Managers completed the purchase of a digital green bond using EUR CoinVertible. One of the key benefits for token holders is the reduced exposure risk, as the collateral euros are held independently from Société Générale’s balance sheet. This ensures that token holders have direct recourse in the event of any issues, without any liabilities falling back on the bank itself. The creation of EUR CoinVertible reflects Société Générale's commitment to innovation and could lead to further integration of stablecoins within traditional financial markets. InvestingPro Insights As Société Générale forays into the digital currency market with its EUR CoinVertible, the bank's financial health and strategic moves are of particular interest to investors. With a Market Cap of approximately $20.34 billion and a P/E Ratio standing at 8.68, the bank presents itself as a potentially undervalued player in the financial sector. Moreover, the bank's revenue over the last twelve months as of Q3 2023 stands at $23.5 billion, despite a notable decline of 16.74% in the same period, signaling a challenging environment for revenue growth. InvestingPro Tips for Société Générale (SOGN) indicate that strong earnings may enable the management to uphold its dividend payments, which have seen an increase for three consecutive years. This commitment to shareholder returns is underscored by the fact that the bank pays a significant dividend to its shareholders, a testament to its financial stability and a potential draw for income-focused investors. In addition, the bank is trading at a low Price / Book multiple, which could signal an attractive entry point for value investors. This is particularly relevant given that Société Générale is a prominent player in the Banks industry and is expected to remain profitable this year, as per analyst predictions. For readers looking to delve deeper into Société Générale's financials and future prospects, InvestingPro offers a wealth of additional insights. There are 13 more InvestingPro Tips available for subscribers, providing a comprehensive analysis of the bank's performance and market position. To access these tips, consider taking advantage of the special Cyber Monday sale, with discounts of up to 60% on a subscription. Plus, use coupon code sfy23 to get an additional 10% off a 2-year InvestingPro+ subscription, enriching your investment strategy with real-time data and expert analysis. https://www.investing.com/news/cryptocurrency-news/societe-generale-debuts-eur-coinvertible-stablecoin-93CH-3250774

2023-12-06 09:38

Copyrighted Image by: Reuters. Investing.com - The U.S. dollar edged lower in early European trade Wednesday, but remained near a two-week high, ahead of key employment data, while the euro headed lower after weak German factory orders. At 04:35 ET (09:35 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.1% lower at 103.925, having climbed 0.3% overnight. The index is up 0.5% this month, after sliding 3% in November, its steepest monthly decline in a year. Labor market data in focus Recent data has generally pointed towards a slowing U.S. economy, although signs still point to a likely soft landing. Tuesday’s release showed U.S. job openings fell to more than a 2-1/2-year low in October, the strongest sign yet that higher interest rates were dampening demand for workers. The labor market will remain in focus Wednesday, with the ADP employment report later in the day, setting up Friday's monthly payrolls report. “We suspect markets are holding a more cautious stance as we head into the key U.S. payroll figures on Friday and the Fed meeting next week, where there is a good probability the FOMC will deliver a protest against rate cut bets – especially if data fails to turn lower,” said analysts at ING, in a note. Euro continues to weaken In Europe, EUR/USD edged lower to 1.0794, close to Tuesday’s three-week low, after German factory orders slumped 3.7% on the month in October, a sharp drop after gaining 0.7% the prior month. Recent data has pointed to the eurozone heading into a recession in the final quarter of the year, as its economy contracted 0.1% in the third quarter, according to official data. Eurozone retail sales are seen rising 0.2% monthly in October later in the session, an annual drop of 1.1%, as consumers in the region continue to struggle, ahead of the festive period. This economic slowdown, coupled with inflation across the euro zone falling more quickly than most anticipated, has led many to think that the European Central Bank could deliver its first rate cut by March. “Shorting the euro appears to be one of the most popular bets in FX at the moment,” ING added. GBP/USD rose 0.1% to 1.2604, ahead of the release of the latest Bank of England financial stability report. Yuan hit by Moody’s downgrade In Asia, AUD/USD rose 0.4% to 0.6576, recovering from two days of steep losses even as data showed Australia’s economy grew less than expected in the third quarter, hit chiefly by declining export demand in China. USD/JPY traded 0.1% higher to 147.21, steadying after the yen recorded a sharp recovery against the dollar in recent sessions. USD/CNY traded 0.2% higher at 7.1589, with sentiment towards the yuan battered by ratings agency Moody’s, which downgraded the country’s credit outlook to negative and flagged increased economic risks from a property market downturn. https://www.investing.com/news/forex-news/dollar-edges-lower-euro-hit-by-weak-german-factory-orders-3250337

2023-12-06 05:35

Copyrighted Image by: Reuters. Investing.com-- Gold prices moved little in Asian trade on Wednesday after falling sharply from record highs this week, with traders now seeking more cues on when the Federal Reserve will begin trimming interest rates. A softer-than-expected JOLTs job openings reading for October pushed up some hopes over a cooling labor market. But focus remained squarely on an upcoming nonfarm payrolls reading for November, due this Friday. The yellow metal had started the week at record highs of over $2,100 an ounce, boosted by seemingly less hawkish comments from Fed Chair Jerome Powell, as well as increased safe haven demand following a spike in Middle East tensions. But it had then retreated sharply from the record peaks, as uncertainty over the Fed helped the dollar recover some lost ground. Gold prices were still trading well above the $2,000 an ounce level. Spot gold rose 0.1% to $2,021.61 an ounce, while gold futures expiring February rose 0.1% to $2,039.00 an ounce by 00:08 ET (05:08 GMT). Markets uncertain over Fed rate cuts While investors were convinced that the Fed will raise interest rates no further, they remained uncertain over just when the central bank planned to begin trimming rates. Fed Funds futures prices show traders pricing in an over 50% chance the Fed could begin trimming rates by as soon as March 2024. Futures also indicated an over 90% chance the Fed will keep rates on hold in December. But the central bank has given no such indication, and has stated that rates will largely remain higher for longer, barring further, pronounced declines in inflation. U.S. inflation is still well above the Fed’s annual 2% target, while the job market remains relatively strong. The U.S. economy also remained largely resilient in the third quarter, amid steady consumer spending. Uncertainty over the Fed’s plans for rate cuts kept further gains in gold somewhat doubtful, given that high interest rates push up the opportunity cost of investing in the yellow metal. But signs of deteriorating economic conditions across the globe- particularly in China and the euro zone- could still drive some safe haven flows into gold. Copper recovers after China fears spur two days of losses Among industrial metals, copper prices rose on Wednesday, recovering from a two-day rout spurred by increased concerns over top importer China. Copper futures expiring in March rose 0.6% to $3.8068 an ounce, after losing nearly 4% in the past two sessions. Concerns over China surged this week after ratings agency Moody’s flagged a potential downgrade to the country’s credit rating, citing increased risks from a property market downturn, as well as a lack of clear policy support from Beijing. The warning, coupled with signs of continued economic weakness in China, pushed up concerns over declining copper demand in 2024. https://www.investing.com/news/commodities-news/gold-prices-pull-back-further-from-record-highs-fed-cuts-in-focus-3250212

2023-12-06 04:59

TOKYO - The USD/JPY currency pair showcased resilience in Asian session on Wednesday, stabilizing above its three-month lows in the mid-147 range. This steadiness comes as US Treasury yields experience slight increases and the Bank of Japan's (BoJ) Deputy Governor Ryozo Himino maintains a dovish stance, emphasizing the continuation of easy monetary policies until Japan's price stability targets are achieved. The dollar's position was bolstered by a modest uptick in US Treasury yields, which often influence the currency's value. Despite this, the greenback displayed signs of weakness due to growing investor expectations of a potential Federal Reserve rate cut in early 2024. These expectations are fueled by a mix of economic reports that suggest a shifting economic landscape. Adding to the complex economic picture, Tokyo’s Core Consumer Price Index (CPI) rose by 2.3% in November. This increase has led to market speculation about a possible shift away from the BoJ's longstanding negative interest rate policy. Tuesday's trading session was marked by significant volatility for the USD/JPY pair, which dipped to a low of 146.56 but managed to recover, closing nearly flat at 147.20. The initial drop in the US dollar was triggered by lower-than-expected JOLTS Job Openings data, hinting at a cooling labor market. However, the currency found support following a robust US ISM Services PMI report, which came in at 52.7. Market participants now look ahead with keen interest to the upcoming ADP Employment Change data, seeking further evidence of labor market conditions. This data is considered a precursor to Friday's crucial Non-Farm Payroll (NFP) figures, which could provide additional insights into the health of the US economy and influence Federal Reserve policy decisions moving forward. https://www.investing.com/news/forex-news/usdjpy-stabilizes-amid-mixed-economic-signals-and-boj-policy-outlook-93CH-3250205

2023-12-06 04:31

Copyrighted Image by: Reuters. Investing.com-- Most Asian currencies rose slightly on Wednesday as weak U.S. labor data spurred continued bets on early interest rate cuts by the Federal Reserve, helping investors look past persistent concerns over China’s economy. JOLTs data showed U.S. job openings declined in October, pushing up hopes for a prolonged cooling in the labor market which could limit the space the Fed has to keep rates higher for longer. The reading pulled down Treasury yields, and comes just a few days before closely-watched nonfarm payrolls data. Optimism over a less hawkish Fed helped most Asian currencies clock some gains on Wednesday. The Taiwan dollar and South Korean won rose 0.1% each, while the Japanese yen steadied after marking a sharp recovery against the dollar in recent sessions. The Australian dollar jumped 0.7%, recovering from two days of steep losses even as data showed Australia’s economy grew less than expected in the third quarter, hit chiefly by declining export demand in China. But local demand and spending remained robust. A less hawkish Reserve Bank was the key source of pressure on the Australian dollar, after the bank kept interest rates on hold on Tuesday and flagged a largely data-driven approach to future hikes. The Indian rupee remained an outlier among its peers, hovering around record lows of over 83.3 as the country’s massive trade deficit largely offset optimism over stellar economic growth. Chinese yuan sinks despite govt support as Moody’s warning weighs The Chinese yuan fell 0.2%, tracking a weaker daily midpoint fix by the People’s Bank of China. But media reports showed that Chinese state-owned banks were selling dollars and buying yuan on the open market to support the Chinese currency. Sentiment towards China was battered by ratings agency Moody’s, which downgraded the country’s credit outlook to negative and flagged increased economic risks from a property market downturn. Moody’s also said that Beijing needed to roll out more stimulus to shore up economic growth. The warning came on the heels of several weak economic readings for November, as a post-COVID recovery failed to materialize this year. Chinese trade data is due on Thursday, and is expected to show persistent weakness in the economy. Dollar steady as timing of Fed rate cuts remains uncertain The dollar index and dollar index futures fell 0.1% each in Asian trade, but were trading comfortably above recent lows. While markets were convinced that the Fed will raise interest rates no further, uncertainty over exactly when the central bank will begin cutting rates in 2024 remained a major point of uncertainty. This notion offered the dollar some support in recent sessions, as did anticipation of Friday's nonfarm payrolls reading. The U.S. economy remains resilient, which is expected to keep inflation sticky, while the labor market may also take longer to cool than expected. Traders are pricing in an over 50% chance the Fed will cut rates by as soon as March 2024. But the central bank has largely maintained its higher-for-longer rhetoric. Upgrade your investing with our groundbreaking, AI-powered InvestingPro+ stock picks. Use coupon INVSPRO2024 to avail a limited time discount on our Pro and Pro+ subscription plans. Click here to know more, and don't forget to use the discount code when checking out! https://www.investing.com/news/forex-news/asia-fx-edges-past-china-woes-as-markets-look-to-less-hawkish-fed-3250202