EQUITIES
Asian shares mostly lower in the morning trade. Except for Hong Kong’s Hang Seng index that gained 0.10%, others retreated. Mainland Chinese stocks edged lower, with the Shanghai composite down about -0.05%, Nikkei 225 loss -0.17%, South Korea’s KOSPI fell -0.40%, Singapore’s loss -0.93%, and Australia S&P/ASX 200 recorded -0.98% lower.
Overnight on Wall Street, the S&P 500 and Nasdaq Composite rose to all-time highs. The broader market index added 0.4%, while the tech-heavy Nasdaq gained 0.8%. The Dow Jones Industrial Average lagged as it declined 0.2%, to close at 28,248.44, snapping a three-day winning streak.
OIL
Oil prices edged higher in the morning of Asia trading hours. Brent crude futures traded to $45.99 a barrel, while U.S. crude at $43.37.
On Tuesday, Brent closed at $45.86 per barrel, while WTI futures ended at $43.35 per barrel.
CURRENCIES
The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 93.11.
The Japanese yen traded at 106.48 per dollar after seeing an earlier high of 106.32 against the greenback. The Australian dollar changed hands at $0.719, in a trading week that has seen in mostly trading between $0.716 and $0.72.
The yuan rose toward a seven-month high after U.S. and Chinese trade officials reaffirmed their commitment to a Phase 1 trade deal.
GOLD
Gold currently trading at $1,927.00 per ounce, while stands around $1,934.60 per ounce for gold futures. Previously closed at $1,928.40 and $1,923.10, respectively.
Silver trading at $26.45, platinum trading at $920.00 and palladium trading at $2,065.00.
ECONOMIC OUTLOOK
Stocks in Asia Pacific were mixed in Wednesday morning trade, following a mixed Wall Street lead as markets cheered signs of progress in U.S.-Sino trade negotiations, though remained cautious about the broader economic outlook.
Top U.S. and Chinese officials reaffirmed their commitment to a Phase 1 trade deal following weeks of escalating tensions between the world's two largest economies.
U.S. Census reported a 36% surge in sales of newly built homes in July.
The Conference Board Consumer Confidence Index fell for a second straight month to 84.8 in August from July’s 91.7 to hit a six-year low.
Trading volume was typically low for late August and investors await a speech by Federal Reserve Chairman Jerome Powell on Thursday when he is expected to address the U.S. central bank's view on inflation and monetary policy.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 24 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 823 thousand fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 106.726 and 107.008.
- Support line of 105.814 and 105.532.
Commentary/ Reason:
- The dollar managed to hold onto slim gains against the yen, last trading at 106.448 due to a slight rise in long-term U.S. Treasury yields.
- Both Stochastic and RSI oscillator is within the normal ranges of 50.
- The MACD is trading below its signal line and positive.
