EQUITIES
European exchanges starting the week with quite positive notes, with Germany's DAX up 2.87%, and France's CAC up 2.15%. Italy's FTSE MIB Index closed 1.61% higher and pan-European Stoxx 600 index grew 1.47% closed Monday.
Stocks in Asia Pacific traded higher Tuesday morning after American biotech firm Novavax said Monday it started the first human study of its experimental coronavirus vaccine. Japan's Nikkei 225 up 1.14%, Australia’s S&P/ASX 200 grew 1.06%, and South Korea’s KOSPI gain 0.51% in early trading. Meanwhile, Hong Kong's Hang Seng and China's Shanghai Composite closed 0.10% and 0.15%, respectively.
U.S. and U.K. markets were closed Monday for Memorial Day and the U.K. spring bank holiday, respectively.
OIL
Brent crude futures ended the session higher on Monday at $35.53 per barrel, a rise of 1.14%, while WTI crude futures rose 1.68%, at $33.81 per barrel.
Currently, oil prices trade higher in the morning of Asian trading hours, with Brent is trading at $35.76 per barrel, while WTI is trading at $34.01 per barrel as of writing time.
CURRENCIES
The U.S. dollar index, which tracks the greenback against a basket of its peers, last traded at 99.67 after declining from levels above 100 last week.
Dollar depreciates against most of major currencies, including against AUD (-0.35%), CAD (-0.23%), NZD (-0.23%), SGD (-0.21%), GBP (-0.17%), CHF (0.14%), DKK (-0.12%), RUB (-0.11%), EUR (-0.09%), MXN (-0.09%), SEK (0.07%), and NOK (-0.03%), at latest reading.
GOLD
Gold currently trading at $1,732.30 per ounce, while stands around $1,733.00 per ounce for gold futures as of writing time. Previously closed at $1,727.60 and $1,735.50, respectively.
Silver trading at $17.30, platinum trading at $833.00 and palladium trading at $1,953.00.
ECONOMIC OUTLOOK
Equities rallied on Monday and early Tuesday trade as countries gradually continue to reopen their economies and lift coronavirus lockdown restrictions, apart from positive development regarding vaccine treatment.
The German economy posted its largest decline in output since the financial crisis in the first quarter and entered a recession as GDP fell 2.2%.
Singapore’s economy is expected to shrink by between 4.0% and 7.0% this year, the third official downgrade in economic forecasts this year, according to the Ministry of Trade and Industry.
WTI rallied more than 70% in May, putting it on track for its best month on record. However, prices are still roughly 50% below their January high of $65.65.
To date, number of confirmed worldwide cases for COVID-19 pandemic has now reached more than 5,588,000 today affecting 213 countries and territories around the world and 2 international conveyances, recording more than 348,000 fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Our Preference:
- Short positions, with target at 107.626.
Commentary/ Reason:
- Stochastic oscillator reading showing an overbought range, indicating impending downward movement.
- RSI value is that more than 70 indicating that the chart is becoming overbought or overvalued and may be primed for a trend reversal.
