DAILY MARKET REPORT 21 APRIL
EQUITIES
Shares in Asia-Pacific were lower on Wednesday trade. Japan’s Nikkei 225 led the losses among the regional markets, as it dropped 1.75%. South Korea’s KOSPI shed 1.61%.
Elsewhere, shares in Australia also declined as the S&P/ASX 200 fell 0.99%. The Singapore’s Straits Times index slipped -1.26%, and the Hong Kong’s Hang Seng index fell 1.42%.
The mainland Chinese Shanghai composite buck the overall market trend, to advance 0.15% higher.
Markets in India are closed on Wednesday for a holiday.
Overnight on Wall Street, the Dow Jones Industrial Average fell 0.75% to 33,821.3. The Nasdaq Composite dropped 0.92% to 13,786.27, and the S&P 500 shed 0.68% to 4,134.94. It was the first back-to-back declines for the S&P since the end of March.
OIL
Oil prices fell for a second day on concerns that soaring COVID-19 cases in India will drive down fuel demand in the world's third biggest oil importer. The Brent crude futures traded at $66.12 per barrel, and U.S. crude futures traded at $62.15 per barrel.
Overnight, the Brent closed at $66.57 while WTI ended at $62.44 per barrel.
CURRENCIES
The dollar index steadied at 91.26, following a drop to a 7-week low earlier today, while benchmark 10-year U.S. Treasury yields dropped below 1.6%.
The Canadian dollar, the Mexican peso, and the Norwegian crown steadied during Asian trading after falling on Tuesday, but more declines the currencies of major oil exporters are likely if energy prices continue to fall.
GOLD
Gold prices hovering near a 7-week high hit earlier this week, as a soggy dollar and a retreat in U.S. Treasury yields lifted demand for the safe-haven metal.
The spot gold rose to trade at $1,781.90 an ounce and retreated to $1,782.70 per ounce for gold futures. Previously closed at $1,778.80 and $1,778.40, respectively.
ECONOMIC OUTLOOK
Asian stocks opened lower on Wednesday, tracking the losses on Wall Street, as a surge in coronavirus cases in countries like India weighs on the economic outlook and investor sentiment. Although the regional bourses may be supported by buying interest in high earning certainty stocks ahead of the earnings season.
A spike in coronavirus cases globally hit the airlines and travel-related shares on Wednesday, following Wall Street's same sector decline overnight.
Data from the API industry group showed U.S. crude oil and distillate stocks rose in the week ended April 16. The crude stocks rose by 436,000 barrels, while the distillate stocks, which include diesel, heating oil and jet fuel, rose by 655,000 barrels. The U.S. EIA will release its inventory data for last week later today.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 142.64 million, recording more than 3.04 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 108.582 and 108.815.
- Support line of 107.831 and 107.599.
Commentary/ Reason:
The safety bid of dollar lifted the yen, which climbed to a fresh 7-week peak of 107.875 per dollar earlier today, before steadied to 108.066.
A decline in T-note yields had weakens the dollar’s interest rate differentials and is negative for the dollar.
The advancement in the Japanese yen however were halted due the growing likelihood that Tokyo, Osaka and surrounding areas will be put on lockdown due to a new wave of coronavirus infections.
