EQUITIES
Asian shares mixed in Wednesday afternoon trade. In Japan, the Nikkei 225 gained 0.30%, with the S&P/ASX 200 leading higher at 1.76%. Meanwhile, mainland Chinese stocks edged lower, with the Shanghai composite retreated -0.44%, while the Hong Kong’s Hang Seng index at -0.51% lower, Singapore’s down -0.43%, and South Korea’s KOSPI little changed at -0.03%.
Higher overnight, The Dow Jones Industrial Average rose 215.61 points, or 0.76%, to 28,645.66, the S&P 500 gained 26.34 points, or 0.75%, to 3,526.65 and the Nasdaq Composite added 164.21 points, or 1.39%, to 11,939.67. The gains pushed the S&P 500 and Nasdaq to closing records.
OIL
Oil prices edged higher as positive tone was set on hopes for a swift economic recovery. Brent crude futures traded to $45.92 a barrel, while U.S. crude at $43.08.
On Tuesday, Brent closed at $45.58 per barrel, while WTI futures ended at $42.76 per barrel.
CURRENCIES
The dollar remained weak against a basket of major currencies despite the optimistic data, falling to its lowest level since late April 2018 at 91.737. Though later bounced finding some strength, now at 92.42.
The Australian dollar lost 0.5% to $0.7348, after GDP data showed the Australian economy suffered a deeper-than-expected 7% contraction in the last quarter, its worst economic downturn on record, while the New Zealand dollar traded at $0.6777.
GOLD
Gold currently trading at $1,963.50 per ounce, while stands around $1,969.80 per ounce for gold futures. Previously closed at $1,969.80 and $1,978.90, respectively.
Silver trading at $28.13, platinum trading at $938.00 and palladium trading at $2,154.00.
ECONOMIC OUTLOOK
Stocks in Asia Pacific rose in Wednesday morning trade as stocks on Wall Street pushes to new records overnight, while economic data and moves toward stimulus talks in Washington helped fuel optimism.
Australia’s GDP fell 7% in the June quarter, the “largest quarterly fall on record,” according to the Australian Bureau of Statistics.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 25.900 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 861 thousand fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 106.232 and 106.458.
- Support line of 105.499 and 105.272.
Commentary/ Reason:
- Against the Japanese yen, the dollar was slightly higher at 106.06 yen.
- Dollar posted modest gains as a rally in stocks reduced the safe-haven demand for the yen, while the yen was traded into a narrow range following the question on the replacement of the Prime Minister.
