EQUITIES
Asia-Pacific markets were higher on Tuesday. the Hong Kong’s Hang Seng index, which returned to trade following holidays in the last few days, jumped 1.30% to lead the day’s gain. In Japan, the Nikkei 225 advanced 1.66%. The South Korea’s KOSPI edged 0.18% higher. Stocks in Australia also rose, with the S&P/ASX 200 up 0.58%. The India’s S&P BSE Sensex index added 0.42%, and the Singapore’s Straits Times index at 0.27% higher.
The mainland Chinese markets are closed on Tuesday for the Lunar New Year holiday.
Wall Street was closed for President’s Day yesterday.
OIL
Oil prices soared to a 13-month high influenced by the severe snowstorm in the U.S. and heightened tensions in the Middle East. The Brent crude futures traded to $63.65 a barrel, while U.S. crude at $60.27.
Overnight, the Brent close at $62.30, while WTI futures ended at $60.29 per barrel.
CURRENCIES
The U.S. dollar fell to a three-week low on Tuesday, was at 90.28 following its decline late last week.
The Australian dollar changed hands at $0.7797, still higher than levels below $0.772 seen last week, while the kiwi made a 5-week peak of $0.7258.
The offshore Chinese yuan hit a 2-1/2-year high of 6.4010 per dollar overnight and last stood at 6.4030.
A higher oil prices supported the currencies of oil-exporting countries. Canadian dollar and Norwegian crown rose to multi-week highs.
GOLD
Gold edged up to trade at $1,825.20 per ounce, while rose around $1,825.90 per ounce for gold futures. Previously closed at $1,818.40 and $1,823.20, respectively.
Silver trading at $27.91, while platinum rallies for third day, trading at $1,322.00 and palladium trading at $2,345.00, to hit a 1-month peak.
ECONOMIC OUTLOOK
Global shares held firm on Tuesday, as most indexes extend their bull run as optimism about the global economic recovery and expectations of low interest rates drove investments into riskier assets. Concerns over pandemic conditions are easing as infectivity rates are falling around the world, while the rollout of coronavirus vaccines is also helping to calm markets further.
U.S. President Joe Biden is pushing ahead with his plan to pump an extra $1.9 trillion in stimulus into the economy, in a further boost to market sentiment.
Euro-area finance ministers will discuss the bloc’s current economic situation and outlook on Tuesday.
WHO approves AstraZeneca/Oxford Covid-19 vaccine for emergency use, allowing them to be rolled out globally via COVAX.
Oil prices rose on factors:
The cold weather in the U.S. that halted Texas oil wells and refineries and forced restrictions on natural gas and crude pipeline operators.
Yemen’s Iran-aligned Houthi group that said it struck Saudi Arabia’s Abha and Jeddah airports with drones.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 109.143 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 2.407 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 105.713 and 106.181.
- Support line of 104.777 and 104.309.
Commentary/ Reason:
The yen weakened to 105.557 per dollar to touch 1-week low since last Tuesday, while also edging closer to its 4-month low of 105.763 set on Feb. 5.
The Japanese yen has been casualty of the broad rally in financial markets.
Earlier today, the BoJ Governor Haruhiko Kuroda said that the recent stock price rally reflected market optimism over the global economic outlook, brushing aside views its ultra-loose monetary policy was fuelling an asset price bubble, while also defends ETF scheme.
The yen also weakens after a buoyant mood and a sell-off in U.S. Treasuries dragged on the safe-haven Japanese yen.
Next, all eyes will be on the release of minutes from the U.S. Federal Reserve's January meeting for hints about the likely direction of monetary policy.
