EQUITIES
Asia-Pacific markets were mixed on Monday. In Hong Kong, the Hang Seng index tumbled -1.64% while the Shanghai composite was down -1.18%. In Japan, the Nikkei 225 index declined -0.61%, and the South Korea’s KOSPI slipped -0.71%.
The Singapore’s Straits Times index jumps, to trade at 2.03% higher, while the Australia’s S&P/ASX 200 added 0.43%, and the India’s S&P BSE Sensex index rose 0.30%.
OIL
Oil prices jumped more than 2% and international benchmark Brent topped $70 a barrel after Saudi Arabia said its oil facilities were targeted by missiles and drones on Sunday. The Brent crude futures traded to $70.74 per barrel, while the U.S. crude futures at $67.40 per barrel.
On Friday, Brent closed at $69.36 while WTI futures ended at $66.09 per barrel.
CURRENCIES
The dollar index held near a 3-month peaks, was last at 91.99, well above its recent trough of 89.677.
Currencies of major commodity exporters pulled back as a broader risk-on trade lost momentum.
The U.S. currency fell against the Norwegian crown and Canadian dollars as traders bought the currencies of oil exporters.
GOLD
Gold prices rose on Monday, recovering from a near 9-month low hit in the previous session, as a passage of the long awaited $1.9 trillion U.S. coronavirus relief package boosted the metal's appeal, though the jump in yields weighed on the bullion.
Gold spot added to trade at $1,708.40 an ounce, while rose around $1,704.90 per ounce for gold futures. Previously closed at $1,700.10 and $1,698.50, respectively.
ECONOMIC OUTLOOK
Asian stocks rose after as U.S. Senate approved a $1.9 trillion stimulus bill. Investors also reacted to last week’s U.S. jobs report that trounced expectations and fuelled hopes for a faster economic recovery.
The stimulus bill news meanwhile put fresh pressure on Treasuries and tech stocks with lofty valuations. Yields on U.S. 10-year Treasuries stood at 1.59% on Monday.
The U.S. Senate passed a $1.9 trillion coronavirus relief package over the weekend that includes direct payments of up to $1,400 to most Americans. The bill is expected to pass in the Democratic-held House this week and sent to President Joe Biden for his signature before a March 14 deadline to renew unemployment aid programs.
Oil prices at highest in more than a year after Yemen's Houthi forces fired drones and missiles at the heart of Saudi Arabia's oil industry on Sunday, raising concerns about production. Prices also supported by a decision by OPEC not to increase supply in April.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 116.83 million, recording more than 2.593 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 108.604 and 108.834.
- Support line of 108.144 and 107.914.
Commentary/ Reason:
The dollar little changed on Monday, to linger at a 9-month top of 108.641 touched Friday and was last changing hands at 108.357.
The dollar gained on the low-yielding yen, supported both by the higher Treasury yields and the upswing in risk aversion the bond rout has generated.
The rally in stock indexes also curbed the yen’s safe-haven appeal.
