Gold hits record high as US-China ties worsen, Asia stocks helped by technology

News Network
July 27, 2020

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Tokyo, Jul 27: Gold hit an all-time high on Monday as tit-for-tat consulate closures in China and the United States rattled investors, boosting the allure of safe-haven assets, although sentiment was mixed with tech gains supporting some Asian stocks.

MSCI's ex-Japan Asia-Pacific index rose 1.3 percent as Taiwan's TSMC, Asia's third-largest company by market capitalisation, rose almost 10 percent.

The chipmaker's gains boosted other tech stocks in the region and came after rival Intel signalled it may give up manufacturing its own components due to delays in new 7-nanometer chip technology.

Also soothing sentiment, Chinese shares eked out gains after big falls late last week, with CSI300 index rising 0.5 percent.

S&P500 futures were last up 0.4 percent in choppy trade while Japan's Nikkei fell 0.5 percent, resuming trade after a long weekend and catching up with falls in global shares late last week.

Global shares had lost steam last week after Washington ordered China's consulate in Houston to close, prompting Beijing to react in kind by closing the US consulate in Chengdu.

US Secretary of State Mike Pompeo took fresh aim at China last week, saying Washington and its allies must use "more creative and assertive ways" to press the Chinese Communist Party to change its ways.

"US President (Donald) Trump used to say China's President Xi Jinping is a great leader. But now Pompeo's wording is becoming so aggressive that markets are starting to worry about further escalation," said Norihiro Fujito, chief investment strategist at Mitsubishi Securities.

Gold rose 1.0 percent to a record high of $1,920.9 per ounce, surpassing a peak touched in September 2011, as Sino-US tensions boosted the allure of safe-haven assets, especially those not tied to any specific country.

The yellow metal is also helped by aggressive monetary easing adopted by many central banks around the world since the pandemic plunged the global economy into a recession.

Some investors fret such an unprecedented level of money-printing could eventually lead to inflation.

MORE STIMULUS

Hopes of a quick US economic recovery are fading as coronavirus infections showed few signs of slowing.

That means the economy could capitulate without fresh support from the government, with some of earlier steps such as enhanced jobless benefits due to expire this month.

Investors hope US Congress will agree on a deal before its summer recess but there are some sticking points including the size of the stimulus and enhanced unemployment benefits.

US Treasury Secretary Steve Mnuchin said the package will contain extended unemployment benefits with 70 percent "wage replacement".

Democrats, who control the House of Representatives, want enhanced benefits of $600 per week to be extended and look to much bigger stimulus compared with the Republicans' $1 trillion plan.

Investors are looking to corporate earnings from around the world for hints on the pace of recovery in the global economy.

"It looks like rising coronavirus cases are starting to slow down recovery in many countries," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management.

Concerns about the US economic outlook started to weigh on the dollar, reversing its inverse correlation with the economic well-being over the past few months.

The dollar index dropped 0.3 percent to its lowest level in nearly two years.

The euro gained 0.3 percent to $1.1693, hitting a 22-month high of $1.16590 as sentiment on the common currency improved after European leaders reached a deal on a recovery fund in a major step towards more fiscal co-operation.

Against the yen, the dollar slipped 0.5 percent to 105.605 yen, a four-month low while the British pound hit a 4 1/2-month high of $1.2832.

Oil prices dipped on worries about the worsening Sino-US relations.

Brent futures fell 0.46 percent to $43.14 per barrel while US crude futures lost 0.44 percent to $41.11.

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News Network
March 14,2024

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The UN agency for Palestinian refugees (UNRWA) says at least five people, including a staff member, were killed and 22 others wounded after Israeli forces targeted a food distribution centre in Rafah in the southern Gaza Strip.

UNRWA Commissioner General Philippe Lazzarini in a statement on Wednesday said that the strike hit one of the very few remaining UNRWA distribution centers in the eastern part of Rafah.

“Today’s attack on one of the very few remaining UNRWA distribution centers in the Gaza Strip comes as food supplies are running out, hunger is widespread and, in some areas, turning into famine,” Lazzarini said.

“Every day, we share the coordinates of all our facilities across the Gaza Strip with parties to the conflict," he continued.

He said the attack was carried out even though "the Israeli Army received the coordinates including of this facility yesterday."

Lazzarini further urged the protection of the UN, its staff, and its premises and called for an independent investigation.

Israel acknowledged an airstrike on a food aid distribution center in southern Gaza, which it claimed targeted and killed a high-ranking member of Hamas. 

Meanwhile, the statement by the UNRWA head added that since October 7, at least 165 team members have been killed while in the line of duty and more than 400 people sheltering in UN buildings also lost their lives due to Israel's attacks.

More than 150 of the agency’s facilities, including schools and shelters, have been hit in the war, with some destroyed, and UNRWA staff have reportedly been mistreated and humiliated while in Israeli detention centers, according to the UNRWA.

Six aid seekers killed in Israeli attack

Separately, the health ministry in the Gaza Strip said six people were killed in the latest attack on Palestinians waiting for humanitarian aid at the Kuwait Roundabout in Gaza City.

The Wafa news agency said some 83 people who were wounded in the attack have been transferred to the al-Shifa Medical Complex in the city.

Over the past weeks, Israeli forces have increased their offensives on the Kuwait Roundabout, an area where large groups gather to wait for aid deliveries.

Israeli forces killed 11 people waiting for food aid at the roundabout on Monday night.

The Israeli military has restricted the delivery of humanitarian supplies to northern Gaza for weeks, and thousands of children are going without sufficient food and medication.

The prevention of aid convoys comes as humanitarian officials have already issued a dire warning, stating that unless a ceasefire is implemented and aid is significantly increased, the toll of malnutrition and disease is expected to rise, leading to an alarming loss of lives.

So far, the Tel Aviv regime has killed at least 31,272 Palestinians, mostly women and children, and injured 73,024 others.

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News Network
March 14,2024

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The high-level committee on simultaneous elections, chaired by Ram Nath Kovind, on Thursday met President Droupadi Murmu at Rashtrapati Bhavan and submitted its report on 'One Nation, One Election'. The report comprises 18,626 pages.

Home Minister Amit Shah was also present at Rashtrapati Bhawan when Kovind led panel submitted the report.

"Simultaneous polls to Lok Sabha and state assemblies can be held in first step, followed by local body polls within 100 days in second step," reported PTI quoting the panel.

"Synchronised polls for all three tiers of government to improve governance architecture, in line with quest of aspirational India," it added.

The report has been submitted 191 days after the constitution of the panel on September 2, 2023.

It's further reported that the proposal also puts focus on having a singular electoral roll for holding Lok Sabha, state assembly and local body polls.

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News Network
March 11,2024

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The Karnataka government on Monday prohibited the use of artificial colours in 'Gobi Manchurian' and 'Cotton Candy' in the state, citing presence of cancer causing chemicals. The state government has also said that its usage can cause adverse effects on public health, especially children. 

Violation of the ban can lead to imprisonment and fine, said the food safety and quality department.

Samples of Gobi Manchurian and Cotton Candy sold across Karnataka were collected by the department and analysed in laboratories. 

Based on the results, the Food Safety Commissioner ordered a ban on usage of any artificial colours in preparation of 'Gobi Manchurian'. While for 'Cotton Candy', the Commissioner prohibited the use of artificial colours, like 'Rhodamine B', over and above the prescribed limits. 

Karnataka Health Minister Dinesh Gundu Rao said that banned chemicals are being used in many food products. 

"We have done a survey across Karnataka and found that these chemicals (Rhodamine-B food colouring agent) are still being used so we are issuing another notice that nothing which is banned should be used and if used strict action will be taken," he added.

The order stated that "prolonged usage of artificial colours in food and its consumption can lead to deadly diseases like cancer". So, the public has been advised not to use any artificial colours in food or to use them in limited quantities.

According to an official, in case of any violation of the Food Safety and Standards Act – 2006 rule 59, the department can file a case in court which can lead to imprisonment from seven years to life term and fine up to ₹10 lakh.

In February this year, Tamil Nadu also banned the sale of cotton candy after finding Rhodamine B and textile dye in it.

What is Rhodamine B?

Rhodamine B is synthetic compound and a fluorescent dye. It is commonly used in microscopy, flow cytometry, dye lasers and fluorescence imaging. It is also used as a colouring agent in products like inks and cosmetics. It is pink to reddish-brown powder or crystals.

However, it is usually associated with health concerns and regulatory restrictions. Some reports suggest prolonged exposure to this chemical may make it carcinogenic for humans.

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