EQUITIES

Asia-Pacific markets were higher in Tuesday trade. Singapore’s Straits Times index led gains among the region’s major markets as it advanced 3.01%. Japan’s Nikkei 225 index rose 0.35%, Australia’s S&P/ASX 200 rose 0.76%, mainland Chinese stock, the Shanghai composite advanced 0.12%, and Hong Kong’s Hang Seng index 0.74%. Over in South Korea, the KOSPI drop marginally to 0.09%.

The S&P 500 and the Dow hit record highs on Monday on vaccine optimism. the Dow Jones Industrial Average rose 2.95%, in its biggest 1-day percentage gain since June 5, and the S&P 500 rose 1.17%. Nasdaq Composite dropped 1.53%, as "stay-at-home" stocks fell sharply.

OIL

Oil prices dropped on Tuesday as concerns over lacklustre demand in the near term in coronavirus-hit Europe and the U.S. returned to haunt the market after an overnight surge of 8% on progress towards a COVID-19 vaccine. Brent crude futures traded to $41.88 a barrel, while U.S. crude at $39.65.

On Monday, Brent closed at $42.40 per barrel, while WTI futures ended at $40.29 per barrel, posting biggest 1-day percentage gain in five months.

CURRENCIES

The dollar remained weak as expectations of better global trade ties and more monetary stimulus under President-elect Biden lifted demand for risky assets. Against a basket of currencies, the dollar held steady at 92.66, slightly above Monday's 10-week trough of 92.12.

The Australian dollar fell 0.07% versus the greenback at $0.728. after touching a 7-week high on Monday. Turkish lira rose in the wake of the ouster of the central bank chief and the resignation of Turkey’s finance minister over the weekend. The lira has slid 30% to record lows this year.

GOLD

Gold regained slightly after overnight sharp slides as Pfizer vaccine news boosts risk appetite. Spot gold currently trading at $1,882.9 per ounce, while stands around $1,879.00 per ounce for gold futures. Previously closed at $1,863.70 and $1,854.40, respectively.

Silver trading at $24.25, platinum trading at $863.00 and palladium trading at $2,368.00.

ECONOMIC OUTLOOK

The Pfizer announcement surprised investors, who sent stocks soaring on overnight, extending the advance on in Tuesday afternoon, mostly driven by regional airline, tourism, and travel stocks. An emergency use authorization (EUA) application will be made after the required safety milestone is achieved, expected to occur in the third week of November.

China’s Q3 GDP growth accelerated to 4.9% from a year earlier. The CPI rose 0.5% in October from a year ago. The PPI fell 2.1% from a year earlier.

To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 50.869 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 1.262 million fatality globally.

TECHNICAL OUTLOOK

[USDJPY]

Important Levels to Watch for Today:

- Resistance line of 106.171 and 107.102.

- Support line of 103.159 and 102.228.

Commentary/ Reason:

- The yen scraped back some losses against the U.S. dollar on Tuesday, to 104.945, after suffering its biggest loss overnight since March.

- The Japanese yen took a drubbing on news of the development of a coronavirus vaccine on Monday which raised optimism of a global economic recovery.

- The safe haven yen recouped some of its overnight losses as in early Tuesday, as Japan’s Prime Minister Yoshihide Suga instructed his cabinet to design a fresh stimulus package to help revive the nation’s flagging economy to offset the ongoing effects of coronavirus.

- The package will consist of measures to cushion the blow from COVID-19, assist structural changes in the economy and boost productivity through digitalisation.