EQUITIES
Asia-Pacific markets mostly higher, with Australia’s S&P/ASX 200 at 0.89% higher, the South Korea’s KOSPI advanced 0.28%, and Japan’s Nikkei 225 gained 0.95%. Meanwhile, Singapore’s Straits Times index fractionally moved -0.07% lower, and Hong Kong’s Hang Seng index slipping -0.78%.
Markets in China are still closed until Friday for a holiday.
Overnight, the Dow Jones Industrial Average rose 530.7 points, or 1.91%, to 28,303.46, the S&P 500 gained 58.5 points, or 1.74%, to 3,419.45 and the Nasdaq Composite added 210.00 points, or 1.88%, to 11,364.60.
OIL
Oil prices rose on Thursday as oil workers evacuated rigs in the U.S. Gulf of Mexico ahead of Hurricane Delta and renewed hopes on Trump’s decision on stimulus talks. Brent crude futures traded to $42.09 a barrel, while U.S. crude at $39.97.
On Wednesday, Brent closed at $41.99 per barrel, while WTI futures ended at $39.95 per barrel.
CURRENCIES
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 93.58 after seeing levels around 93.9 earlier.
The New Zealand dollar at $0.6572 after senior officials at the country's central bank signalled further monetary policy easing, including negative rates, was just round the corner. The Australian dollar was weaker at $0.7140.
GOLD
Spot gold was a shade weaker, currently trading at $1,885.00 per ounce, while stands around $1,888.50 per ounce for gold futures. Previously closed at $1,886.80 and $1,890.80, respectively.
Silver trading at $23.77, platinum trading at $855.00 and palladium trading at $2,272.00.
ECONOMIC OUTLOOK
Asian shares climbed to a one-month high on Thursday, as U.S. stocks closed out higher on Wednesday, and renewed hopes for more U.S. stimulus helped restore investor confidence.
President Trump easing back a pledge for no stimulus cash before the election gave the market enough hope. The new proposal by the President is to urge the Congress to pass a series of smaller, standalone bills that would include a bailout package for the airline industry battered by the coronavirus pandemic.
The Fed minutes indicated that the FOMC was pricing in further stimulus measures this year at the last meeting, without which the economic recovery was expected to be weaker.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 36.077 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 1.054 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 106.215 and 106.442.
- Support line of 105.552 and 105.346.
Commentary/ Reason:
- Recovery in equity markets sank the safe-haven yen to a three-week low of 106.105 per dollar overnight, before steadying at around the 106 mark.
- The pair was last quoted at 106.966.
- Bank of Japan Governor Haruhiko Kuroda said on Thursday the economy was starting to pick up and was likely to continue recovering thanks in part to the boost from fiscal and monetary stimulus measures, adding that Japan’s banking system remains stable as a whole and corporate funding conditions remain tight.
