DAILY MARKET REPORT 19 APRIL
EQUITIES
Shares in Asia-Pacific were higher on Monday trade. Mainland Chinese stocks led gains among the region's major markets, with the Shanghai composite up 1.32% while the broader Hang Seng index in the city rose 0.81%. The Nikkei 225 in Japan advanced 0.15% while the South Korea's KOSPI gained 0.31%. Elsewhere, the S&P/ASX 200 in Australia rose 0.20%, and the Singapore’s Straits Times index added 0.27%.
India's markets tumbled as the S&P BSE Sensex dropped 2.22% as the pandemic situation in the country remains severe and weighs on investor sentiment.
On Friday last week, the S&P 500 gained 0.4% to close at a new record high while clocking its sixth straight weekly gain. The Dow finished 0.5%, also at a record high while the Nasdaq climbed 0.1%.
OIL
Oil prices fell on Monday amid mounting concerns that some countries experiencing a new wave of coronavirus infections. The Brent crude futures traded at $66.56 per barrel, and U.S. crude futures traded at $62.99 per barrel.
Last Friday, the Brent closed at $66.77 while WTI ended at $63.13 per barrel.
CURRENCIES
Benchmark U.S. 10-year Treasury yields edged lower towards multi-weeks low touched last week.
U.S. dollar loitered near a 4-week low against a basket of currencies as investors increasingly bought into the Federal Reserve's insistence it would keep an accommodative policy stance for a while longer. The dollar index was last traded at 91.62, not far from its lowest since March 18 touched on Friday.
Bitcoin recouped most of its losses after plunging as much as 14% on Sunday.
GOLD
Gold prices rose on Monday, hovering near a 7-week peak hit in the previous session, as a softer dollar and a retreat in U.S. Treasury yields lifted demand for the safe-haven metal.
The spot gold rose to trade at $1,777.80 an ounce and retreated to $1,778.80 per ounce for gold futures. Previously closed at $1,776.50 and $1,780.20, respectively.
ECONOMIC OUTLOOK
Shares in Asia-Pacific mostly rose in Monday trade, helped by expectations that monetary policy will remain accommodative to the world over. Though some markets lagged as the surge in COVID-19 infections continues to rampage optimism.
Forex traders are expected to monitor the movement of oil prices amid China's waning credit impulse as catalyts for trading as the U.S. Fed was in the communications blackout period ahead of the FOMC meeting scheduled for April 28.
Investors keeping eyes peeled for earnings from IBM and Coca-Cola later in the day. Netflix reports on Tuesday while later in the week American Airlines and Southwest will be the first major post-COVID cyclicals to post results.
The ECB meets on Thursday with no changes to rates or guidance expected while preliminary data on factory activity around the world for April is due on Friday.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 141.40 million, recording more than 3.01 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 108.977 and 109.122.
- Support line of 108.509 and 108.364.
Commentary/ Reason:
Against the Japanese yen, the greenback was off a touch at 108.670, down 0.06% to record a new weekly low.
The yen gained some breathing room today as U.S. Treasury yields and dollar volatility eased.
The yen rose as the Japanese exports posted a double-digit increase for the first time in more than three years in March as the recovery picked up in key markets abroad.
Worries about rising coronavirus infections in Japan however capped gains. Japan is facing downside risks as the governor of Tokyo is considering another state of emergency in response to a steady increase in coronavirus infections.
