EQUITIES
Asian share markets traded in green in early trading, as Japan's Nikkei 225 rose 0.65%, Hong Kong's Hang Seng gained 1.52%, China's Shanghai Composite up 0.89% and Singapore’s rose 0.34%. Shares in Australia also traded higher, as the S&P/ASX 200 rose 1.46%, and South Korea’s KOSPI up 0.98% in early trading.
OIL
Oil seesawed in the morning of Asian trading hours as investors wary that rising COVID-19 cases would hurt demand and WHO advising some states to re-implementing lockdown. Brent crude futures traded to $42.04 a barrel, while U.S. crude at $39.91.
On Wednesday, Brent closed at $42.03 per barrel, while WTI futures ended at $39.82 per barrel.
CURRENCIES
The U.S. dollar index, which tracks the greenback against basket of its peers, was at 97.14 following an earlier high of 97.19.
The Japanese yen strengthened 0.05% to 107.51 per dollar, while sterling was last trading at $1.2482, up 0.10% on the day. The Australian dollar was at $0.6912 after bouncing from levels below $0.69 yesterday.
Dollar is on the defensive against more growth-sensitive currencies, following upbeat U.S. and European economic data, however, renewed worries about the coronavirus blunted more aggressive risk taking.
GOLD
Gold currently trading at $1,767.00 per ounce, while stands around $1,777.60 per ounce for gold futures as of writing time. Previously closed at $1,770.30 and $1,779.90, respectively.
Silver trading at $17.92, platinum trading at $809.00 and palladium trading at $1,846 .00.
ECONOMIC OUTLOOK
Stocks in Asia Pacific rose in Thursday morning trade following positive news overnight around the development of a potential coronavirus vaccine.
U.S. manufacturing activity rebounded more than expected in June, with the index by the ISM hitting its highest in 14 months as firms and businesses resumed operations.
Similar surveys from China, Germany and France all pointed to a recovery in factory activity while the ADP National Employment Report showed June private payrolls increased 2.369 million jobs.
New U.S. COVID-19 cases rose by nearly 50,000 on Wednesday, in the biggest one-day spike since the start of the pandemic. Most of the daily cases each day are in Arizona, California, Florida, and Texas.
To date, number of confirmed worldwide cases for COVID-19 pandemic has passed reached more than 10.804 million today affecting 213 countries and territories around the world and 2 international conveyances, recording more than 519 thousand fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 108.264 and 108.822.
- Support line of 106.692 and 106.074.
Commentary/ Reason:
- Against the yen, the dollar traded at 107.519 having fallen around 0.5% the previous day as the pair was unable to recover losses made in Asian trade on safe-haven bids.
- Stochastic indicator is more than 80, signalling that the indicator has entered overvalued range.
- RSI indicator steadies around normal range of 50.
- MACD is trading above its signal line and negative.
