EQUITIES
Asia-Pacific markets rose on Thursday on thin trading day, with Australia’s S&P/ASX 200 added 1.23%, and Singapore’s FTSE STI 1.32% higher. Meanwhile, Japan’s Tokyo Stock Exchange suspended trading due to a technical issue, and it is unclear when it will resume.
Markets in China will be closed October 1-8 for the Golden Week holiday. Hong Kong, South Korea, and Taiwan are closed on Thursday and Friday for holidays.
Overnight, Dow Jones Industrial Average gained 1.2%, to close at 27,781.70. The S&P 500 added 0.8% to end its trading day at 3,363.00, while Nasdaq Composite rose 0.7% to close at 11,167.51.
OIL
Oil turned higher though demand and hopes for U.S. stimulus agreement kept prices shaky. Brent crude futures traded to $42.27 a barrel, while U.S. crude at $40.15.
On Wednesday, Brent closed at $40.95 per barrel, while WTI futures ended at $40.22 per barrel.
CURRENCIES
Stocks rally pulled the dollar to a one-week low against a basket of currencies, was at 93.70 in a week that has seen it decline from levels above 94.2.
The Australian dollar changed hands at $0.7175, at a one-week top. The New Zealand dollar extended gains to a one-week peak of $0.6629. The yuan edged up to a week-high 6.7898 in offshore trade, though volumes are thin, as onshore market closed for holiday.
GOLD
Gold spot currently trading at $1,890.80 per ounce, while stands around $1,896.80 per ounce for gold futures. Previously closed at $1,885.20 and $1,895.50, respectively.
Silver trading at $23.50, platinum trading at $897.00 and palladium trading at $2,226.00.
ECONOMIC OUTLOOK
Asian equities set for modest gains on Thursday after U.S. stocks closed out a second consecutive quarter with sharp gains on Wednesday, though resurgence in new COVID-19 cases, hopes for an economic recovery, stimulus talk, and a chaotic U.S. presidential debate jumbled the sentiment.
Better-than-expected gains in ADP’s survey of September’s private payrolls helped push U.S. equities higher.
More than 7,500 finance jobs and a trillion pounds in assets have already left Britain for the EU as banks prepare for full-blown Brexit in January, EY consultants said on Thursday.
The large manufacturers index in the Bank of Japan’s quarterly tankan business sentiment survey came in at minus 27, compared to a 11-year low minus 34 reading in June.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 33.88 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 1.013 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 105.822 and 106.003.
- Support line of 105.236 and 105.055.
Commentary/ Reason:
- The Japanese yen held at 105.47 per dollar after seeing levels above 105.6 against the greenback yesterday, in the wake of a chaotic first U.S. presidential debate.
- USD/JPY retreated from a 2-week high and moved lower after stocks gave up most of their early rally Wednesday, which boosted safe-haven demand for the yen.
- Firmness in the safe-haven Japanese yen indicated that plenty of underlying caution remains.
- Japanese PM Suga is likely to hold off calling a snap election this year as the coronavirus pandemic continues to ravage the economy, Yomiuri newspaper reported.
