EQUITIES
Asia-Pacific markets traded lower on Monday. Except for the Shanghai Composite that at 1.07% higher, others declined. The Japan’s Nikkei 225 lost -0.63%, the South Korea’s KOSPI at 0.43% lower, the Australia’s S&P/ASX 200 lost -0.73%, Singapore’s Straits Times index slipped -0.49%, and the Hong Kong’s Hang Seng index down -0.50%.
Markets in India are closed on Monday for a holiday.
OIL
Oil prices fell about 1% on Monday on some profit-taking jitters ahead of an OPEC+ meeting to decide whether the producers’ group will extend large output cuts. The Brent crude futures traded to $47.55 a barrel, while U.S. crude at $44.96.
On Friday, Brent closed at $48.18 per barrel, while WTI futures ended at $45.53 per barrel.
CURRENCIES
Against a basket of currencies, the dollar index was pinned at 91.69 having shed around 2.4% for the month to suffer its lowest in two year on Monday, as combination of vaccine optimism and bets on more monetary easing in the U.S. drives investors out of the world’s reserve currency.
The Australian dollar changed hands at $0.7392, hit a more than 2-year high and is headed for its best monthly percentage gain in 7 years.
Chinese yuan also marks a sixth consecutive monthly gain, which has soared some 9% from a low in May. It last sat at 6.5738 per dollar in offshore trade.
GOLD
Gold had been one of major casualty of the rush to risk, plummeting to near a 5-month trough and shed 4.7% so far in November. Spot gold currently trading at $1,771.90 per ounce, while stands around $1,774.70 per ounce for gold futures. Previously closed at $1,787.70 and $1,788.10, respectively.
Silver trading at $21.98, platinum trading at $954.00 and palladium trading at $2,290.00.
ECONOMIC OUTLOOK
Stocks in Asia were lower on Monday as investors monitored progress on the path to a coronavirus vaccine on the final day to seal a record-busting month record month for global equities.
Trade frictions between Washington and Beijing may also have weighed on investor sentiment today. Trump administration is set to add China’s top chipmaker SMIC and oil and gas producer CNOOC to a defence blacklist.
China's factory activity expanded at the fastest pace in more than 3 years in November, on track to be the first major economy to fully recover from the coronavirus crisis. The manufacturing PMI rose to 52.1 in November from 51.4 in October.
China’s central bank on Monday offers a 200 billion yuan ($30.4 billion) injection of medium-term cash into the banking system to calm nerves rattled by a string of recent bond defaults.
Japan’s retail sales rose 6.4% year-on-year in October.
OPEC to meet on Monday and Tuesday to decide whether to delay next year's planned hike in oil output as a second COVID-19 wave has cut into global demand for fuel.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 62.736 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 1.46 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 103.878 and 103.687.
- Support line of 104.260 and 104.451.
Commentary/ Reason:
- The dollar touched a weekly low against the safe haven yen earlier today at 103.833. Now last sat at 103.87, down some 0.16% on the day.
- Nervousness about a wave of new infections across Europe and the U.S., and fresh lockdowns, have provided some support to safe-haven currencies.
- The yen also strengthened on a report that said the Bank of Japan would extend a range of funding measures aimed at easing corporate funding strains that are scheduled to expire in March of 2021.
