EQUITIES
Asian share markets opened trading week in red, as Japan's Nikkei 225 slipped -1.95% and Hong Kong's Hang Seng slipped -1.16%. China's Shanghai Composite loss -0.71% and Singapore’s down -0.98%. Meanwhile, shares in Australia also traded lower, as the S&P/ASX 200 down -2.10 %, and South Korea’s KOSPI loss -1.62% in early trading.
Wall Street had faltered on Friday as some U.S. states reconsidered their reopening plans.
OIL
Oil slipped in the morning of Asian trading hours. Brent crude futures fell around 80 cents to $40.23 a barrel, while U.S. crude lost 70 cents to $37.79.
On Friday, Brent closed at $41.02 per barrel, while WTI futures ended at $38.49 per barrel.
CURRENCIES
The U.S. dollar went the opposite direction, rising to 97.33 against a basket of currencies from a trough of 95.714 earlier in the month.
The Japanese yen traded at 107.15 per dollar seeing sharp moves between levels below 106.8 and above 107.2 against the greenback last week. The Australian dollar changed hands at $0.6873 after declining from levels above $0.695 last week.
The euro stood at $1.1239 having found solid support around $1.1167. Sterling nursed losses and sat at $1.2366, just a fraction above a one-month low it hit on Friday amid fresh doubts over whether Britain can settle a post-Brexit trade pact with the EU.
GOLD
Gold currently trading at $1,770.30 per ounce, while stands around $1,784.30 per ounce for gold futures as of writing time. Previously closed at $1,771.50 and $1,780.30, respectively.
Silver trading at $17.89, platinum trading at $798.00 and palladium trading at $1,810.00.
ECONOMIC OUTLOOK
Asian share markets got off to a shaky start on Monday as the relentless spread of the coronavirus finally made investors question their optimism on the global economy, benefiting safe harbour bonds and the U.S. dollar.
Oil prices fell for a second straight session. Despite efforts by OPEC and their allies including Russia to reduce supplies, crude inventories in the U.S., the world’s largest oil producer and consumer, have hit all-time highs.
Japan’s retail sales dropped 12.3% year-on-year in May, according to the country’s Ministry of Economy, Trade, and Industry.
China’s industrial firms in May rose 6% YoY to 582.3 billion yuan ($82.28 billion). Profits rose for the first time in six months in May, suggesting the country’s economic recovery is gaining traction and brightening the outlook for manufacturing investment and jobs.
To date, number of confirmed worldwide cases for COVID-19 pandemic has passed reached more than 10.242 million today affecting 213 countries and territories around the world and 2 international conveyances, recording more than 504 thousand fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 107.431 and 107.982.
- Support line of 106.995 and 105.104.
Commentary/ Reason:
- The Japanese yen traded at 107.189 per dollar seeing sharp moves between levels below 106.8 and above 107.2 against the greenback last week.
- Stochastic oscillator closing into undervalued range.
- RSI indicator is steadies around the normal range of 50.
- MACD is trading below its signal line and positive.
