EQUITIES
Asian shares lower in afternoon trading. Except for Japanese Nikkei 225 and Hong Kong’s Hang Seng index that saw gains at 0.30% and 0.41%, another index mostly declined. Mainland Chinese stocks, the Shanghai composite down -0.21%, Singapore’s -0.55%, South Korea’s KOSPI -0.90%, and Australia’s S&P/ASX 200 fell -0.73% lower.
Overnight stateside, the major stock averages stateside saw losses on the day. The Dow Jones Industrial Average fell 405.89, or 1.45%, to 27,534.58. The S&P 500 slid 1.8% to 3,339.19 while the Nasdaq Composite dropped 2% to 10,919.59.
OIL
Oil prices fall below $40, extending declines after data showed U.S. crude stockpiles rose, rather than dropping as expected, and COVID-19 cases continued to rise around the world. Brent crude futures traded to $39.88 a barrel, while U.S. crude at 37.15.
On Thursday, Brent closed at $40.06 per barrel, while WTI futures ended at $37.30 per barrel.
CURRENCIES
Against a basket of currencies, the dollar hung on to modest gains and looks set to finish a second consecutive week ahead. The index was at 93.28.
The Australian dollar was at $0.7274 after falling yesterday from levels above $0.73. The New Zealand dollar fell to $0.6661 and was under gentle pressure on Friday.
GOLD
Gold currently trading at $1,938.50 per ounce, while stands around $1,947.90 per ounce for gold futures. Previously closed at $1,946.60 and $1,964.30, respectively.
Silver trading at $26.61, platinum trading at $919.00 and palladium trading at $2,161.00.
ECONOMIC OUTLOOK
Asian markets were expected to fall on Friday in response to declines in technology stocks that began last week. Geopolitical developments also likely weighed on investor sentiment, amid a recent rise in tensions between the U.K. and EU.
Oil prices slid again after U.S. data showed a build in crude stockpiles last week stemming in part from ongoing reductions at refineries along the Gulf of Mexico after Hurricane Laura.
Thursday's weekly U.S. labour market data was negative. Weekly initial unemployment claims were unchanged at 884,000, showing a weaker labour market than expectations of 850,000. Also, weekly continuing claims unexpectedly rose +93,000 to 13.385 million, showing a weaker labour market than expectations for a decline to 12.904 million.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 28.325 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 913 thousand fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 106.366 and 106.532.
- Support line of 105.855 and 105.697.
Commentary/ Reason:
- The safe-haven Japanese yen held steady at 106.16 per dollar, having inched higher overnight.
- USD/JPY moved lower on weakness in stocks, which prompted buying of the yen. The yen also strengthened on a Reuters report that said the BOJ at next week's policy meeting would boost its forecasts for the economy, output, and exports compared to where they stood at its previous meeting in late-July.
