EQUITIES
Shares in Asia-Pacific were higher on Thursday trade. Japanese markets returned to trade for the first time this week after being closed for public holidays, with the Nikkei 225 leading the regional markets, jumped 1.67%. In South Korea, the KOSPI which was also closed in the previous session, rose 0.43%. Elsewhere, the India’s BSE Sensex edged 0.35% higher, and the Singapore’s Straits Times Index added 0.29%. In Hong Kong, the Hang Seng index rose 0.17%.
Chinese mainland shares traded for the first time in May after being shut for public holidays. The benchmark Shanghai composite gave up gains to decline 0.22% while the Australia shares also declined as the S&P/ASX 200 fell -0.49%.
Overnight on Wall Street, the Dow closed at 34,230.34, up by 0.29%, while the S&P 500 gained 0.07%, to 4,167.59. The Nasdaq Composite gave up its earlier gains and ended 0.37%, lower at 13,582.43.
OIL
Oil prices rose as draw in the crude stockpiles reinforcing bullish views on fuel demand in the world's largest economy., although underpinned by the gasoline inventories that rose for a fifth consecutive week.
The Brent crude futures traded at $69.08 per barrel, and U.S. crude futures traded at $65.64 per barrel.
Overnight, the Brent closed at $68.96 while WTI ended at $65.63 per barrel.
CURRENCIES
The dollar index stayed relatively rangebound, up 0.07% at 91.32 against a basket of its peers.
The 10-year U.S. Treasuries yield little changed at 1.582%, not far from its 1-week low hit on Tuesday.
The Australian dollar fell after China said it would end economic dialogue with Canberra.
Cryptocurrency ether traded at $3,503 after reaching a record $3,545.20 on Tuesday, the ninth straight day to mark an all-time high. Bitcoin traded steady, hovered around $57,300.
GOLD
Gold prices edged higher on Thursday as a dip in U.S. treasury yields offset pressure from a stronger dollar.
The spot gold retreated to trade at $1,787.90 an ounce and slipped to $1,789.30 per ounce for gold futures. Previously closed at $1,786.60 and $1,784.30, respectively.
Silver was steady at $26.84 per ounce, while platinum dipped to $1,217. Palladium fell to $2,879 per ounce, after scaling an all-time high of $3,017.18 per ounce on Tuesday, driven by supply shortfalls.
ECONOMIC OUTLOOK
Asia stocks rose in early trade Thursday buoyed by optimism over solid corporate earnings and economic reports. Though cautiously traded as investors look to the U.S. jobs report on Friday for clues about how long the Fed will stay on hold.
The ADP National Employment Report showed U.S. private payrolls increased in April. A more comprehensive reading in the form of the Labor Department's non-farm payrolls data is due on Friday.
Eurozone business growth accelerated in April. The IHS Markit's final composite PMI climbed to 53.8 last month from March's 53.2. The PMI for the service industry rose to 50.5 from 49.6.
EIA figures reported the U.S. crude inventories fell by 8 million barrels in the week to April 30 to 485.1 million barrels, while the gasoline stocks rose by 737,000 barrels in the week.
China, which is Australia’s largest trading partner, reportedly has “indefinitely” suspended all activities under the China-Australia Strategic Economic Dialogue in the middle of a strained relationship between Beijing and Canberra.
Some key events to watch today including U.S. unemployment data, EU retail sales, BoE rate decision and several PMI figures.
Among U.S. corporate earnings due today including Cardinal Health, Anheuser-Busch InBev, ViacomCBS, McKesson and Square.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 154.78 million, recording more than 3.23 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 109.500 and 109.641.
- Support line of 109.041 and 108.899.
Commentary/ Reason:
The dollar changed hands at 109.375 per yen, consolidating after rallying as high as 109.695 on Monday, a level not seen since April 13.
The weakening in the safe-haven demand for the yen came as stock index turned higher on the day.
An increase in U.S. inflation expectations to an 8-year high on Wednesday was hawkish for Fed policy and lifted the dollar.
In its latest meeting minutes earlier today, the BoJ policymakers agreed to focus on keeping interest rates stably low, as pandemic pain persists. The remarks underscore the BOJ's resolve to maintain its massive stimulus as slow vaccine rollouts and a fourth wave of infections cloud prospects for a solid economic recovery.
At the March review, the BoJ kept policy steady and unveiled steps to make its tools sustainable enough to weather a prolonged battle to hit its 2% inflation target.
The USD/JPY continues to stall at the 109.04 price level which represented an obstacle in the past for buyers. The pair will likely now remain within the 109.04- 109.64 price range. Bullish momentum is currently moderate.
