Gold and Silver Prices Rebound After Volatile Week Triggered by Fed Nomination 
ECB’s Cipollone Backs Digital Euro as Europe Pushes for Payment System Independence 
Gold Prices Slide Below $5,000 as Strong Dollar and Central Bank Outlook Weigh on Metals 
BOJ Rate Decision in Focus as Yen Weakness and Inflation Shape Market Outlook 
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election 
Bank of Japan Signals Cautious Path Toward Further Rate Hikes Amid Yen Weakness 
U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains 
China Extends Gold Buying Streak as Reserves Surge Despite Volatile Prices 
RBA Expected to Raise Interest Rates by 25 Basis Points in February, ANZ Forecast Says 
Fed Governor Lisa Cook Warns Inflation Risks Remain as Rates Stay Steady 
Japanese Pharmaceutical Stocks Slide as TrumpRx.gov Launch Sparks Market Concerns 
HIBOR or the Hong Kong Interbank Offer Rate became infamous earlier this year in January when overnight rate touched above 68 percent as the People’s bank of China (PBoC) drew liquidity from the offshore market via state-owned banks to discourage speculators from pushing the yuan lower and keep a check on yuan volatility.
The rate is gaining prominence in the mainstream media again as it rises but this time around, it may not be for the same reason. This time, it could be risks; risks of a fresh slowdown in the U.S. as well as global economy and the increased possibility of a rate hike from the U.S. Federal Reserve.
On Thursday, there was a sudden spike in the HIBOR funding cost. The rate jumped by 388 basis points to 5.45 percent on Thursday from just 1.57 percent. However, as rates were sliding down on Friday, it was thought to be a one-time phenomenon. But today it is up by more than 80 basis points from Friday’s close to 5.515 percent and that is above the high seen on Thursday.
This spike is coinciding with the turmoil in the capital market that has been materializing since Friday. Since Friday, US benchmark stock index is down more than 70 points, which is more than 3 percent for the index. DAX is down more than 400 points. While equities are sliding, bonds have joined in too. UK 10-year yield is up more than 20 basis points since Friday.
As of now, it is far from clear on what has been creating the turmoil; most remarks are suggesting nervousness surrounding the increased possibility of a rate hike from Fed.
