EQUITIES
Shares in Asia-Pacific traded higher on Tuesday, with shares in Japan leading gains among the region’s major markets. In Japan, the Nikkei 225 jumped 2.91%, partially recovering from its more than 3% tumble overnight.
South Korea’s KOSPI advanced 0.71%, the Australia’s S&P/ASX 200 added 1.66%, and the S&P BSE Sensex in India rose 0.83%.
Mainland Chinese stocks also edged higher as the Shanghai composite gained about 0.80% while the Hong Kong’s Hang Seng index traded flat.
Meanwhile over in Southeast Asia, the Singapore’s Straits Times index bucked the overall trend, slipped 0.33% lower.
Overnight, Wall Street was led higher by shares of banks and energy firms. The Dow Jones Industrial Average rose 1.76% to end at 33,876.97 points, while the S&P 500 gained 1.40% to 4,224.79. The Nasdaq Composite climbed 0.79% to 14,141.48.
OIL
Crude oil rose on the back of strong market sentiment on hopes for a quick recovery in oil demand in the U.S. and European markets, and a pause in talks to revive the Iran nuclear deal.
The Brent traded at $75.16 per barrel, and U.S. crude futures traded at $73.72 per barrel.
Overnight, the Brent closed at $74.90, while WTI ended at $73.66 per barrel.
CURRENCIES
The dollar paused for breath after gaining sharply in the wake of the Fed's policy surprise. The dollar index retreated from 2-month highs against its rivals, stood at 91.952 on Tuesday.
The benchmark 10-year yield held below 1.50%, last at 1.479%.
Bitcoin stabilised on Tuesday Bitcoin after a heavy selling on Monday, hurt by a tightening crackdown on trading and mining in China, as well as technical factors.
GOLD
Gold prices edged higher on Tuesday, as a pullback in the dollar lifted demand for the safe-haven metal.
The spot gold advanced at $1,788.20 an ounce and jumped to $1,788.40 per ounce for gold futures. Previously closed at $1,783.40 and $1,782.90, respectively.
ECONOMIC OUTLOOK
Global shares rebounded from yesterday’s losses on Tuesday, as bargain hunting emerged on the back of improved market sentiment, partly offset worries about any near-term rise in U.S. interest rates.
Although market volatility is expected to persist as market players will weigh on the inflation dynamics and subsequent course of action by the Fed.
Some key events to watch today including U.S. existing home sales and EU’s consumer confidence, as well as Fed chief Jerome Powell who expected to testify before the House Select Subcommittee on the Coronavirus Crisis regarding Fed’s emergency lending programs and current policies.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 110.757 and 111.032.
- Support line of 109.675 and 109.409.
Commentary/ Reason:
The Japanese yen traded at 110.445 per dollar, weaker than levels below 110 seen against the greenback yesterday.
A sharp rally in Japan’s Nikkei Stock Index after a sell-off to a 1-month low overnight curbed safe-haven demand for the yen.
The yen was also undercut by a dovish BOJ move after the Japanese central bank on Monday purchased 70.1 billion yen of ETFs, the BOJ’s first purchases of ETFs since April 21.
USD/JPY continues to oscillate within the pattern of an ascending triangle where typically, a bullish breakout can be anticipated.
