HK Stock Market Move | Inflation concerns impact the Fed's rate cut expectations. Chifeng Jilong Gold Mining (06693) drops more than 5%, EVEREST GOLD (01815) drops more than 4%.

Gold stocks fell again, as of the time of writing, Chifeng Jilong Gold Mining (06693) fell 5.22% to HK$41.4; EVEREST GOLD (01815) fell 4.64% to HK$1.44; ZIJIN GOLD INTL (02259) fell 3.29% to HK$196.9; Shandong Gold Mining (01787) fell 3.22% to HK$38.42. On the news front, oil prices breaking $100 once again intensified inflation concerns, with the US dollar index nearing the 100 mark. In light of the prospect of rising energy costs, market expectations for a rate cut by the Federal Reserve are diminishing. According to Caixin, the latest probability data from FedWatch by CME Group shows that traders in the fed funds futures market have now largely ruled out the possibility of a rate cut in September, and now believe that the Fed may only cut rates once in December. Interest rate swap contracts linked to the Fed's policy meeting dates also indicate that swap traders are no longer entirely confident that the Fed will cut rates this year.