EQUITIES
Shares in Asia-Pacific were mixed in Thursday trade. Mainland Chinese stocks nudged higher as the Shanghai composite rose 0.55%, and as the Hong Kong’s Hang Seng index traded 0.08% higher. The Nikkei 225 advanced 0.26%, and the S&P BSE Sensex in India added 0.24%.
Elsewhere, the S&P/ASX 200 in Australia shed 0.78%, the South Korea’s KOSPI slipped 0.95%, and the Singapore’s Straits Times index was down 0.31%,
Overnight on Wall Street, the Nasdaq closed at a record high, added 50.15 points, or 0.33%, to 15,309.38. The S&P 500 gained 0.03%, to 4,524.09, and the Nasdaq Composite Dow Jones Industrial Average fell 0.14%, to 35,312.53.
OIL
Oil prices eased after OPEC+ agreed to stick to their existing policy of gradual output increases, while the full extent of damage to U.S. energy infrastructure in the wake of Hurricane Ida is still being assessed.
The Brent now traded at $71.41 per barrel, while U.S. crude futures traded at $68.32 per barrel.
Overnight, the Brent settled at $71.59 a barrel, and the WTI ends at $68.59 per barrel.
CURRENCIES
The benchmark U.S. note's yield traded flat at 1.302%, breaking away from the recent top of 1.375% amid the jobs chatter.
The dollar hovered near multi-week lows versus major peers, fell to 92.51.
GOLD
Gold were flat on as investors were largely on the sidelines awaiting the U.S. non-farm payrolls print that is crucial for Federal Reserve’s tapering timeline. Commodities such as gold would likely benefit from any delay in Fed tapering.
Spot gold was steady at $1,811.10 per ounce, and the U.S. gold futures were little changed at $1,813.00.
Silver was flat at $24.16 per ounce, while platinum fell 1.03% to $989.30. Palladium eased 0.47% to $2,430.00.
ECONOMIC OUTLOOK
Asian share markets were in a cautious mood on Thursday as recent disappointing economic indicators continued to weigh on market sentiment, while traders are awaiting U.S. non-farm payrolls.
Chinese technology stocks rebounded on bets that the worst of Beijing’s regulatory crackdown may be over, while speculation of more fiscal stimulus by the central bank also offered some support. Its officials recently signalled plans to selectively loosen monetary policy to cushion the economy.
The National Employment Report by payroll processor ADP showed U.S. private employers hired far fewer workers than expected in August, but the labour market continued to steadily recover. Traders are awaiting a fuller jobs readout this week, including the closely watched U.S. non-farm payrolls data due on Friday. Fed Chair Jerome Powell said last week that the jobs recovery would determine the timing of the asset purchase tapering.
OPEC and its allies agreed to stick to their existing policy of gradual oil output increases, with the cartel wagering that the global market can absorb the additional supply as demand improves and stockpiles get drawn down. OPEC+ agreed to stick to a policy of adding 400,000 bpd a month to the market.
Some of the main moves in markets today including U.S. factory orders, durable goods, trade balance, initial jobless claims, and Eurozone producer prices.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 110.472 and 110.689.
- Support line of 109.767 and 109.549.
Commentary/ Reason:
That kept the dollar stood at 110.009 yen and comfortably within the tight 108.71 to 110.79 range that has lasted for the past two months.
The dollar initially rallied against the Japanese yen but then failed to continue going higher as the ADP employment numbers came out at about half of what was expected.
The pair continues to trade choppy as it awaits the Friday’s non-farm payroll announcement for more clues regarding the stimulus paring, which of course will have a major influence on what happens next.
Meanwhile, the Bank of Japan shows no sign of tapering its massive purchases as the country remains mired in a decades-long battle with deflation.
To the downside, the 109.550 level is massive support, and breaking down below that would obviously be a major turn of events. On the other hand, to the upside the 110.47 level is resistance, followed by 110.68 will show themselves to have plenty of supply.
