EQUITIES
Asia-Pacific markets extended yesterday trend, with Hong Kong’s Hang Seng index advanced 0.75%. South Korea’s KOSPI advanced 0.44%, Japan’s Nikkei 225 rose 0.52%, Singapore’s Straits Times index 0.55% higher, and Australia’s S&P/ASX 200 at 0.19% higher.
Markets in China are still closed until Friday for a holiday.
Overnight, Wall Street rallied sharply with, energy, tech and healthcare stocks leading. The Dow Jones Industrial Average rose 1.7%, the S&P 500 gained 1.8% and the Nasdaq Composite added 2.3%. The mood also shared with European stocks that closed at a two-week high on Monday.
OIL
Oil price edged higher. Brent crude futures traded to $41.42 a barrel, while U.S. crude at $39.43.
Oil jumped more than 5% overnight, as Brent closed at $41.29 per barrel, while WTI futures ended at $39.22 per barrel.
CURRENCIES
The dollar’s index against a basket of six major currencies dropped to 93.39, touching its lowest level in two weeks.
The risk-sensitive Australian dollar stood at $0.7192, post-policy announcement from the RBA. New Zealand dollars edged ahead at $0.6646.
GOLD
Gold inched higher as the dollar slipped, currently trading at $1,911.20 per ounce, while stands around $1,916.70 per ounce for gold futures. Previously closed at $1,913.10 and $1,920.10, respectively.
Silver trading at $23.34, platinum trading at $891.00 and palladium trading at $2,269.00.
ECONOMIC OUTLOOK
Asia’s stock markets edged higher to a two-week high on Tuesday, extending to a second day of gains made with an improvement in both U.S. President Donald Trump’s health and prospects for a U.S. stimulus package, while bonds and the dollar nursed losses.
Hopes for a U.S. economic relief package grew as House Speaker and Treasury Secretary spoke on Monday and prepared to talk again Tuesday, continuing a recent flurry of activity working towards a deal on legislation.
Oil price edged higher supported by several factor:
- The escalating workers’ strike in Norway over pay.
- The evacuation of oil platforms in the Gulf ahead of Tropical Storm Delta heading toward Louisiana and Florida.
- Positive development on President Trump’s COVID-19 illness, after a three-night hospital stay.
The Reserve Bank of Australia on Tuesday announced its decision to maintain the current policy settings. Meanwhile, the country’s trade balance declined 43% from July to August.
The IMF approves a six-month debt relief extension for 28 low-income countries, under the Catastrophe Containment and Relief Trust (CCRT).
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 35.415 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 1.043 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 105.868 and 106.005.
- Support line of 105.424 and 105.287.
Commentary/ Reason:
- The dollar advanced on the safe-haven yen to 105.63 yen, near its highest levels in three weeks.
- While the dollar was under pressure on other major currencies, it advanced as a rally in stocks reduced the safe-haven demand for the yen.
- Also, undercutting the yen is comment from BOJ Governor Kuroda, who said that the BOJ would continue easing firmly as uncertainties for the economic outlook are "extremely high" and that the risks are on the downside for the economy and inflation.
