EQUITIES
Shares in Asia-Pacific were mixed on Tuesday trade. The Nikkei 225 in Japan rose 0.30%, while over in South Korea, the KOSPI gained 0.40%. The S&P BSE Sensex in India traded around the flatline, and the Singapore’s Straits Times index led the gains regionally at 1.13% higher.
Elsewhere, the Shanghai composite and the Hong Kong’s Hang Seng index both fell around 0.55%, and the Australia’s S&P/ASX 200 declined 0.30%.
OIL
Oil prices on Tuesday hold on to the previous day's rally, after OPEC+ officials called off oil output meeting without a date for the next one being agreed, although concerns that members may start to increase production capped gains.
The Brent now traded at $77.50 per barrel, and U.S. crude futures traded at $76.73 per barrel.
Overnight, the Brent closed at $77.16, while WTI ended at $76.79 per barrel.
CURRENCIES
The dollar eased back on Tuesday at 92.145, moving further away from a 3-month high hit last week, pressured by the weaker details of the U.S. nonfarm payrolls report last week.
Benchmark 10-year U.S. Treasuries were last at 1.444%, up from a close of 1.431% on Friday.
Elsewhere, a sharp rise in oil prices pushed exporters' currencies higher, driving the Norwegian crown and Canadian dollar upward.
Cryptocurrencies were steady on Tuesday, with bitcoin at $34,577 and ether holding on to recent momentum to trade at $2,295.
GOLD
A subdued dollar helped gold prices hovering close to a 2-week high on Tuesday, while investors awaited more U.S. economic data for clues on the Fed’s monetary policy plans going forward.
The spot gold advanced to $1,798.60 an ounce and jumped to $1,797.80 per ounce for gold futures. Previously closed at $1,791.70 and $1,783.30, respectively.
Silver edged 0.7% higher to $26.68 per ounce, palladium gained 1.16% to $2,825.00 and platinum climbed 1.84% to $1,107.70.
ECONOMIC OUTLOOK
Asian share markets were mixed on Tuesday, as markets struggled for direction. U.S. markets were closed on Monday to mark the Independence Day holiday, leaving the Asian region without a strong lead to start trading on Tuesday.
Lingering uncertainty from China’s tech companies clouded market sentiment. Chinese technology stocks remain under the microscope on Tuesday after the Cyberspace Administration of China (CAC) ordered an investigation into Didi Global Holdings just days after it listed on the NYSE.
Crude oil was rangebound after talks between OPEC and its oil-producing allies were postponed, with no new date is set to resume them. OPEC+ ministers called off oil output talks on Monday after clashing last week when the UAE rejected a proposed 8-month extension to output curbs, meaning no deal to boost production has been agreed. Saudi energy minister Prince Abdulaziz bin Salman had called for "compromise and rationality" to secure a deal after two days of failed discussions last week.
Investors eyes Tuesday will be on the Australian central bank’s interest rate decision, with the U.S. services survey and a German sentiment survey later in the day.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 111.221 and 111.385.
- Support line of 110.689 and 110.525.
Commentary/ Reason:
The yen rose 0.10% to 110.86 per dollar.
The dollar edged to a new 1-1/4-year high on Friday but then fell back on some pre-weekend long liquidation pressure. Investors re-assessed short dollar positions following months of strong data and a hawkish shift in tone from the Fed.
Meanwhile, the Japanese yen on Tuesday was supported after the data on household spending rose at a double-digit rate in May.
However, the yen unable to pierce higher, following the accelerating COVID-19 infections in Tokyo renewed concerns about a potential surge triggered by the Olympics, which open July 23.
The yen also was undercut by a hawkish speech by Chinese President Xi in which he saber-rattled on the issue of Taiwan and fuelled geopolitical concerns for the region.
