CSOP Double Long Gold (07299) saw a sharp decline of more than 7% in Thursday trading, dropping 7.65% to HK$24.62 at the time of writing, with turnover reaching HK$74.63 million.
The selloff comes as Federal Reserve Chair Kevin Warsh delivered a hawkish debut speech at the Jackson Hole Economic Symposium. Warsh reaffirmed that the Fed's 2% PCE inflation target remains "firm and fixed," and stated that if the Fed cannot be confident that underlying inflation is returning to target at a "clear and sufficiently fast" pace, "there is more work to do."
Market data showed the two-year Treasury yield surged more than 10 basis points during intraday trading, hitting a one-month high. Concurrently, market pricing for a September rate hike has intensified notably.
In a research note, CITIC Securities observed that Warsh's Jackson Hole address primarily reinforced the Fed's commitment and determination to combat inflation, striking a decidedly more hawkish tone than his remarks at the July FOMC meeting. While market expectations for a September rate increase have risen considerably, CITIC maintains its baseline forecast that the Fed will hold rates steady at its September meeting, based on its projections for U.S. inflation and economic growth trends. The firm notes that upcoming inflation and employment data will be critical in determining the policy path.
Comments