EQUITIES
Asian share markets traded higher in today trading day, except for China’s markets, as tensions with U.S. continues. Japan's Nikkei 225 appreciated 1.44%, Singapore’s up 0.99%, Australia’s &P/ASX 200 gains 1.12%, and South Korea’s KOSPI up 0.58%.
Meanwhile, Hong Kong's Hang Seng and China's Shanghai Composite down -0.45% and -1.41%, respectively.
OIL
Oil prices rose Wednesday as OPEC and its allies cut production by more than agreed to in June, although concern about demand remained. Brent crude futures traded to $43.11 a barrel, while U.S. crude at $40.50.
On Tuesday, Brent closed at $42.90 per barrel, while WTI futures ended at $40.29 per barrel.
CURRENCIES
The U.S. dollar index, which measures the safe-haven greenback against a basket of six rival currencies, slid 0.32% to 96.23.
The Japanese yen traded at 107.28 per dollar after touching levels around 107.4 against the greenback yesterday. The Australian dollar changed hands at $0.6990 after rising from levels below $0.694 yesterday.
GOLD
Gold prices inched up, rising above the $1,800 level, trading at $1,797.50 per ounce, while stands around $1,801.30 per ounce for gold futures as of writing time. Previously closed at $1,802.00 and $1,814.10, respectively.
Silver trading at $19.03, platinum trading at $823.00 and palladium trading at $1,914.00.
ECONOMIC OUTLOOK
Stocks in Asia optimist on Wednesday as hopes for a coronavirus vaccine rise. Moderna reported yesterday that their vaccine trial produced ‘robust’ immune response. Though, tensions between U.S. and China could weigh on investor sentiment.
Volume on U.S. exchanges was 10.7 billion shares, compared with the 11.8 billion average for the full session over the last 20 trading days.
The U.S. Labor Department’s consumer price index rose 0.6% last month, the biggest gain since August 2012, after easing 0.1% in May.
The Bank of Japan announced that they kept monetary policy steady. The BOJ maintained its -0.1% short-term interest rate target and a pledge to cap 10-year government bond yields around zero.
To date, number of confirmed worldwide cases for COVID-19 pandemic has reached more than 13.447 million today affecting 213 countries and territories around the world and 2 international conveyances, recording more than 580 thousand fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 108.818 and 108.165.
- Support line of 106.692 and 106.074.
Commentary/ Reason:
- The Japanese yen was a fraction softer, with the dollar at 107.301, off two-week high of 106.635 after the BOJ's policy announced.
- Stochastic indicator value is more than 80, signalling that the indicator had entered overvalued range.
- RSI indicators steadies around normal range of 50 for some time.
- The MACD is trading above its signal line and positive. The configuration is positive.
