EQUITIES
Asia-Pacific markets mostly rose in Monday trade. The Japan’s Nikkei 225 advanced 0.54%, the Australia’s S&P/ASX 200 added 0.26%, the Shanghai Composite rose 0.33%, and the Singapore’s Straits Times index led the gains regionally at 1.39%.
Meanwhile, the Hong Kong’s Hang Seng index slipped -0.32% and the South Korea’s KOSPI down -011%.
OIL
Oil prices rose on Monday, pushing Brent back above $50 a barrel, buoyed by hopes that a rollout of coronavirus vaccines will lift global fuel demand. The Brent crude futures traded to $50.35 a barrel, while U.S. crude at $46.82.
On Friday, Brent closed at $49.97 per barrel, while WTI futures ended at $46.57 per barrel.
CURRENCIES
The dollar index at 90.80 ahead of the U.S. Federal Reserve's two-day meeting starting on Tuesday.
U.S. dollar net short positioning in the latest week climbed to its highest since late September, according to calculations by Reuters and Commodity Futures Trading Commission data released on Friday. The short positions hold on expectations of a global recovery, buoyed by positive coronavirus vaccine news and hopes for further U.S. stimulus that should lift the market’s risk appetite. The dollar is also under pressure due to expectations that U.S. interest rates will remain low for an extended period.
The Australian dollar changed hands at $0.7536, little changed ahead of RBA minutes meeting tomorrow. The New Zealand dollar edged higher ahead of data later in the week, forecasted to show a sharp rebound in the country’s GDP.
GOLD
Gold eased on Monday as the roll out of vaccines in the U.S. lifted risk sentiment. Gold currently trading at $1,834.90 per ounce, while stands around $1,838.60 per ounce for gold futures. Previously closed at $1,839.50 and $1,843.60, respectively.
Silver trading at $23.87, platinum trading at $1,010.00 and palladium trading at $2,218.00.
ECONOMIC OUTLOOK
Stocks started a busy week with cautious gains as investors gauged the chance of added U.S. fiscal and monetary stimulus, with extension of Brexit talks also buoyed financial markets. Progress on coronavirus vaccines also cheered risk sentiment.
The text of a $908 billion bipartisan COVID-19 relief plan is set to be released as early as Monday and will be split into two packages in a bid to win approval, a person briefed on the matter said.
London and Brussels agreed on Sunday to more talks on an elusive trade agreement, to push Brexit trade talks beyond latest deadline.
The Bank of Japan’s quarterly tankan survey showed on Monday that business sentiment in Japan improving in the three months to December.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 72.225 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 1.612 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 104.476 and 104.623.
- Support line of 103.898 and 103.706.
Commentary/ Reason:
- The yen was little changed at 104.044 dollar, following a strengthening form last week against the greenback.
- USD/JPY posted moderate losses as no-deal Brexit concerns, along with the ongoing stalemate in U.S. pandemic stimulus talks, have undercut stocks and boosted the safe-haven demand for the yen.
