EQUITIES
Market rallies for second day as investors await US$2 trillion aid package. The gains came after US lawmakers appeared to reach a deal on a $2 trillion economic stimulus bill early Wednesday morning aimed at helping individuals and companies amid the coronavirus crisis.
On Tuesday, major benchmark closes as follow:
S&P 500 Index : $2.475.56, gain 28.23 points or 1.15%
Dow Jones Industrial Average : $21,200.55, gain 495.64 points or 2.39%
Nasdaq Composite Index : $7,384.30, loss 33.56 points or -0.45%
European exchanges are not excluded in recording gains, with London's FTSE 100 up 4.45%, Germany's DAX 1.79% and France's CAC 40 gain 4.47%. Italy's closed 1.74% higher and pan-European Stoxx 600 index gain 3.09%.
Asian markets jumped Wednesday, following Wall Street's major surge overnight. Japan's Nikkei 225 surged 6%, while South Korea's KOSPI surged more than 5%. Australia's S&P/ASX 200 increased 2.5%. Hong Kong's Hang Seng gained more than 2% in early trading, and China's Shanghai Composite was up around 2%.
Asian markets showing mixed reaction in the early trade, with Japan's Nikkei 225 dropped -3.80%, acting as the worst performer in the region. Hong Kong's Hang Seng fell -0.52%, Singapore’s loses -0.60%. South Korea’s KOSPI reversing loses to stand at 0.78%, SENSEX gains 6.89%, China's Shanghai Composite up 0.18% and Australia's S&P/ASX 200 trading at 2.74% in green
OIL
Brent crude futures ended the session on Wednesday up 0.88% at $27.39 per barrel while WTI crude futures for May delivery rose 2%, to $24.49 per barrel.
At present, oil slipped after the three-day gain as Brent is trading at $27.23 per barrel while U.S. benchmark WTI crude trading at $24.11 per barrel, as of writing time (UTC+08.00).
CURRENCIES
The U.S. dollar traded lower on Wednesday, compared with a basket of its major peers. The U.S. dollar index US:DXY was down 1.1%. Even so, U.S. dollar still appreciate against most of other currencies on Thursday, underscoring a desperate global dash for liquidity that was blamed for amplifying a worldwide equity selloff and volatility across financial markets. Against AUD (0.77%), MXN (0.50%), CAD (0.38%), NZD (0.26%), GBP (0.18%) and SGD (0.14%).
Meanwhile, U.S. dollar also drops against some other currencies, such as NOK (-0.50%), JPY (-0.41%), EUR (-0.32%), RUB (-0.33%), CHF (-0.33%), and DKK (-0.33%) at the latest reading.
GOLD
Gold trades in red after three-day winning streak. Gold retreated at $1,604. per ounce, while stands around $1,630 per ounce for gold futures of writing time.
Silver trading at $14.40, platinum trading at $726.00 and palladium trading at $2,210.00.
ECONOMIC OUTLOOK
The $2 trillion Fed deal was expected to include a $500 billion fund for loans to larger businesses, as well as states and municipalities, $360 billion in loans for small businesses and direct payments of $1,200 to individuals making up to $75,000 per year, phasing out above $99,000.
To date, number of confirmed worldwide cases for COVID-19 pandemic has now reached more than 472,000 today affecting 198 countries and territories around the world. The death toll from the novel coronavirus has now topped 21,000 – including 1,032 in the U.S.
TECHNICAL OUTLOOK
[NZDUSD]
Forecast: bear flag takes shape, RSI retains bearish formation, tracking the downward trend from earlier this year.
New announcement on nationwide lockdown may put pressure on the Reserve Bank of New Zealand to further support the economy.
