EQUITIES
Asian shares lower Wednesday following Wall Street tumble overnight. Stocks in Australia led losses among the major markets regionally, as the S&P/ASX 200 declined -2.45%. Mainland Chinese stocks also fell as the Shanghai composite dropped -1.04% while the Hong Kong’s Hang Seng index slipped -0.97%. Nikkei 225 dropped by -1.57%, followed by the South Korea’s KOSPI and Singapore’s at -0.83% and -0.51%, respectively.
The moves came as Investors reacted to overnight declines on Wall Street. The Dow Jones Industrial Average plunged 632.42 points, or -2.3%, to end its trading day at 27,500.89. The S&P 500 slid -2.8% to close at 3,331.84. The Nasdaq Composite dropped -4.1% to close at 10,847.69. Tuesday’s drop put the tech-heavy Nasdaq down 10% over the past three days.
OIL
Oil extended the decline in Asian trading to the lowest levels since June due to concern about weak global energy demand and excess supply. Brent crude futures traded to $39.44 a barrel, while U.S. crude at 36.34.
On Tuesday, Brent closed at $39.78 per barrel, while WTI futures ended at $36.76 per barrel.
CURRENCIES
The dollar index against a basket of six major currencies stood near a four-week high as Wall Street’s sell-off and renewed fears about Brexit boosted safe-harbour demand for the greenback, last at 93.48.
The Australian dollar changed hands at $0.7221 after falling from levels above $0.726 yesterday, New Zealand dollar at $0.6621, climbing back after fell to two-week lows.
GOLD
Gold currently trading at $1,928.30 per ounce, while stands around $1,934.50 per ounce for gold futures. Previously closed at $1,931.00 and $1,943.20, respectively.
Silver trading at $26.61, platinum trading at $896.00 and palladium trading at $2,159.00.
ECONOMIC OUTLOOK
Markets in Asia-Pacific tumbled Wednesday morning after shares on Wall Street declined overnight stateside. The drop mostly seen in technology stocks, following losses seen by their counterparts stateside.
Oil recorded its biggest one-day loss in more than two months as growing doubts over the strength of the global demand recovery along with continued weakness in stocks and worsening U.S.-China relations soured market sentiment.
Chinese inflation data for August released Wednesday showed the PPI declined 2.0%, while the CPI in August rose 2.4% from a year earlier, according to China’s National Bureau of Statistics.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 27.734 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 900 thousand fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 106.413 and 106.639.
- Support line of 105.681 and 105.455.
Commentary/ Reason:
- USD/JPY moved lower as the slide in stocks spurred increased safe-haven demand for the yen.
- In early trade the Japanese yen rose to a one-week peak of 105.83 per dollar as investors looked to jittery equity markets to set the tone. The pair last stood at 105.94.
