EQUITIES
Shares in Asia-Pacific were lower on Tuesday trade. In Japan, the Nikkei 225 shed -0.27%, and in South Korea, the KOSPI down -0.28%. Elsewhere, Australia shares declined as the S&P/ASX 200 fell -0.31%. The mainland Chinese stocks also edged lower, with the Shanghai composite slipped -0.54%, while the Hong Kong Hang Seng shed -0.17%.
Meanwhile in India, BSE Sensex jumped 1.06% as more countries pledged aid to help the pandemic situation in the country. The Singapore’s Straits Times index added 0.29%.
Overnight on Wall Street, the S&P 500 and Nasdaq closed at record highs, fuelled by heavyweight growth stocks ahead of a deluge of earnings reports this week. The S&P 500 gained 0.18% to 4,187.62, and the Nasdaq Composite climbed 0.87% to 14,138.78. The Dow Jones Industrial Average, however, fell 0.18% to end at 33,981.57 points.
OIL
Oil prices pared losses on Tuesday from drops in the previous session, though gains were capped by growing concern about fuel demand in India.
The Brent crude futures traded at $65.94 per barrel, and U.S. crude futures traded at $62.31 per barrel.
Overnight, the Brent closed at $65.65 while WTI ended at $61.91 per barrel.
CURRENCIES
The dollar index, which tracks the U.S. currency against six peers, was at 90.96, after dipping to the lowest since March 3 overnight.
The benchmark 10-year Treasury yield was around 1.577% on Tuesday, traded in narrow ranges since sliding to a 1-month low of 1.528% in the middle of this month.
Turkey's lira edged lower, adding to a recent slide and nearing an all-time low as a chill settled on relations with the U.S. and after the new central bank chief signalled that rate hikes would harm the economy.
Bitcoin snapped its five straight days of losses, to rebound past $53,000, partly driven by reports that JPMorgan Chase is planning to offer a managed bitcoin fund.
GOLD
Gold prices slipped as dollar steadying. The spot gold down to trade at $1,778.10 an ounce and rose to $1,778.40 per ounce for gold futures. Previously closed at $1,781.00 and $1,780.10, respectively.
ECONOMIC OUTLOOK
Asian shares fell as investors refrain from taking on large positions ahead of a 2-day Federal Reserve meeting beginning on Tuesday and quarterly GDP numbers for the U.S., offsetting growing optimism about the global economic recovery from the COVID-19 blow and strong corporate earnings.
Market participants are also watching out for any fresh developments on President Joe Biden's tax plan, after reports last week said he would seek to nearly double the capital gains tax to 39.6% for wealthy individuals.
Among corporate earnings due today include BP, UPS, General Electric, Alphabet, Microsoft, Starbucks and AMD.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 147.53 million, recording more than 3.11 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 108.378 and 108.608.
- Support line of 107.635 and 107.406.
Commentary/ Reason:
The dollar added 0.15% to 108.237 yen, continuing its rise to record a new weekly high on Tuesday against the Japanese yen.
The dollar garnered support from rising T-note yields as the 10-year T-note yield climbed to a 4-session high of 1.597% overnight.
The Bank of Japan on Tuesday announced its decision to keep monetary policy steady. The Japanese central bank also revised downward its forecast for core inflation in fiscal year 2021 to 0.1% from the 0.5% projected in January.
Japan imposed a third state of emergency on multiple regions, including Tokyo and Osaka, to curb the spread of coronavirus infections.
USD/JPY price action didn’t make it as far as the ascending trendline before buyers returned. The pair is now headed back towards the 108.5 price line which represented a key resistance level for the previous rally. Momentum indicators are also undergoing bullish reversals.
