EQUITIES
Stocks in Asia traded mixed on the last day of 2020. The Shanghai Composite added 0.84%, the Hong Kong’s Hang Seng Index gains 0.25%, and India’s S&P BSE Sensex Index rose 0.28%.
Meanwhile, the Australia’s S&P/ASX 200 down -1.43%, and the Singapore’s Straits Times Index slipped -0.57%.
Markets in Japan and South Korea are closed on Thursday for a holiday, with multiple other markets are set to close early for New Year’s Eve.
Overnight on Wall Street, the Dow Jones Industrial Average gained 73.89 points to close at 30,409.56. The S&P 500 rose 0.1% to end its trading day at 3,732.04 while the Nasdaq Composite climbed 0.2% to close at 12,870.
OIL
Oil prices traded flat on Thursday, supported by a draw in U.S. crude inventories and Britain's approval of a second coronavirus vaccine. The Brent crude futures traded to $51.45 a barrel, while U.S. crude at $48.24.
On Wednesday, Brent closed higher at $51.34 per barrel, while WTI futures ended at $48.40 per barrel.
CURRENCIES
An upbeat mood pushing the safe-haven U.S. dollar to its lowest since April 2018. The struggling dollar dropped to 89.46 against a basket of currencies.
The Australian dollar and New Zealand dollar held their ground at their respective 32-month highs of $0.7695 and $0.7222.
Bitcoin jumped to a record US$28,929, after the digital currency almost quadrupled in value this year amid heightened interest from bigger investors.
GOLD
The bullion run into profit taking Thursday, as the spot gold trading at $1,888.60 an ounce, while at to around $1,892.60 per ounce for gold futures. Previously closed at $1,894.30 and $1,893.40, respectively.
Silver trading at $26.38, platinum trading at $1,054.00 and palladium trading at $2,248.00.
ECONOMIC OUTLOOK
Asian shares entered the final trading day of 2020 by hovering near record highs, as investors stick to a bullish view overall, betting on a strong economic recovery next year, with ongoing rollout of coronavirus vaccines and hopes of bigger fiscal and monetary aids buoyed sentiment, though surging COVID-19 cases globally kept investors cautious.
U.S. oil inventory draw of 6.1 million barrels for the week ended Dec 25, better-than-expected.
China PMI for December according to data from the National Bureau of Statistics:
- Manufacturing PMI showed growth but fell to 51.9 in December from 52.1 in November.
- Services PMI showed growth but fell to 55.7 in December from 56.4 in November.
- Composite PMI showed growth but fell to 55.1 from 55.7 in November.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 82.655 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 1.803 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 103.618 and 103.868.
- Support line of 102.809 and 102.560.
Commentary/ Reason:
- USD/JPY traded flat at 103.166 on Thursday.
- Trade is expected to be thin in Asia with Japan and South Korea on holiday.
- Overnight, the pair dropped to a 1-1/2 week low and is just above the 9-1/2-month low from December 17.
- Demand of safe haven currencies weakened as risk sentiment improved in the wake of Britain’s trade deal with the EU and on the U.S. President’s decision to pass dollar-negative pandemic stimulus programs.
