EQUITIES

Asia-Pacific markets lower on Asian afternoon trade. Shanghai composite down -0.54%, while the Hang Seng index in Hong Kong also fractionally lower at -0.17%. In Australia, the S&P/ASX 200 lose about -0.13%, and Singapore’s Straits Times index moved -0.50% lower. In Japan though, the Nikkei 225 added 0.18%.

Overnight on Wall Street, the Dow Jones Industrial Average dropped 157.71 points, or 0.6%, to close at 28,679.81. The S&P 500 ended its trading day 0.6% lower at 3,511.93 while the Nasdaq Composite dipped 0.1% to close at 11,863.90.

OIL

Oil prices edged lower in the morning of Asian trading hours. Brent crude futures traded to $42.31 a barrel, while U.S. crude at $40.08.

On Tuesday, Brent closed at $42.45 per barrel, while WTI futures ended at $40.20 per barrel.

CURRENCIES

The U.S. dollar boasted its best daily performance in three weeks on Tuesday with its index against a basket of six major currencies rising 0.5%. The index was last flat at 93.53.

The Australian dollar has been slugged by news that China has stopped taking shipments of Australian coal, dragging the Aussie to one-week lows. It was last changed hands at $0.7168.

The onshore yuan last traded at 6.7422 per dollar, after posting its  biggest daily fall in seven months on Monday, after the central bank cut foreign exchange forward reserve requirements, which makes it cheaper to short the currency. Across the Tasman Sea, the New Zealand dollar edged higher against its U.S. counterpart at 0.6662.

GOLD

Spot gold currently trading at $1,896.00 per ounce, while stands around $1,898.60 per ounce for gold futures. Previously closed at $1,891.70 and $1,894.60, respectively.

Silver trading at $24.17, platinum trading at $866.00 and palladium trading at $2,256.00.

ECONOMIC OUTLOOK

Stocks in Asia-Pacific traded cautiously in Wednesday morning trade, as investors await a speech from Chinese President Xi Jinping. Halted COVID-19 vaccine trials and an impasse in U.S. fiscal aid package talks also soured risk appetite, while the greenback held on to gains as demand firmed for safe-harbour assets.

U.S. House Speaker Nancy Pelosi rejected a $1.8 trillion relief proposal from the White House, saying it “falls significantly short of what this pandemic and deep recession demand.”

The U.S. Fed vow to keep interest rates near zero for what could be years is “appropriate” for now, though more action could be needed as the recovery proceeds, San Francisco Fed President Mary Daly said on Tuesday.

Singapore's GDP contracts by 7% in 3Q compared with a year ago. The country also said it kept its exchange-rate based monetary policy on hold.

OPEC reported Tuesday that oil demand in 2021 will rise by 6.54 million bpd to 96.84 million bpd, 80,000 bpd less than its forecast a month ago.

To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 38.066 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 1.085 million fatality globally.

TECHNICAL OUTLOOK

[USDJPY]

Important Levels to Watch for Today:

- Resistance line of 105.687 and 105.835.

- Support line of 105.206 and 105.057.

Commentary/ Reason:

- The Japanese yen traded at 105.425 per dollar, having seen levels below 105.3 against the greenback earlier in the trading week.

- USD/JPY moved higher on reduced safe-haven demand for the yen after Chinese trade data was stronger-than-expected, a positive indicator for global economic growth and negative for the safe-haven demand of the yen.