EQUITIES

Asia-Pacific markets mostly lower on Asian afternoon trade. Australia’s S&P/ASX 200 led the decline regionally with -1.78% lower. Japan’s Nikkei 225 dipped to -0.28%, Singapore’s Straits Times index down -0.62%, mainland Chinese stock, the Shanghai composite down about -0.37%, Hong Kong Hang Seng shed -1.20%, and the South Korea’s KOSPI marginally moved at -0.06%.

Stocks across the globe posted their biggest decline in a month on Monday. Overnight, the Dow Jones Industrial Average closed 650.19 points lower, or 2.3%, at 27,685.38. The S&P 500 fell 1.9% to finish its trading day at 3,400.97 while the Nasdaq Composite dipped 1.6% to close at 11,358.94.

OIL

Oil prices advanced, though the prospect of increased supply and resurgent coronavirus infections still worried investors. Brent crude futures traded to $40.65 a barrel, while U.S. crude at $38.72.

On Monday, Brent closed at $40.46 per barrel, while WTI futures ended at $38.56 per barrel.

CURRENCIES

U.S. dollar index strengthened as surging coronavirus cases sent investors to the safety of the dollar. The index last stands a fraction firmer at 92.97.

The yuan nursed a 0.5% loss as Sino-U.S. tensions flared over arms sales to Taiwan. Turkey’s lira weakened past 8 per dollar for the first time.

GOLD

Gold steadied to trade above $1,900 an ounce as investors weighed fading prospects for fiscal aid and losses in equities.

Spot gold currently trading at $1,907.10 per ounce, while stands around $1,910.40 per ounce for gold futures. Previously closed at $1,902.30 and $1,905.70, respectively.

Silver trading at $24.47, platinum trading at $873.00 and palladium trading at $2,258.00.

ECONOMIC OUTLOOK

Stocks in Asia-Pacific slipped in Tuesday trade on surging coronavirus cases and a stalemate in Washington over the next fiscal aid bill darkened the economic outlook in the run up to Nov 3 U.S. presidential elections.

Optimism is fading over the White House striking a stimulus deal with Democrats before the elections.

US new home sales fall 3.5% in September.

Profits at China’s industrial firms jumped 10.1% YoY in September, marked the fifth month of profit growth, though slower than a 19.1% increase last month.

South Korea’s GDP grew 1.9% in the Q3.

To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 43.444 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 1.158 million fatality globally.

TECHNICAL OUTLOOK

[USDJPY]

Important Levels to Watch for Today:

- Resistance line of 105.103 and 105.270.

- Support line of 104.566 and 104.400.

Commentary/ Reason:

- The Japanese yen did not move much as U.S. equities sold off and was steady at 104.72 per dollar in Asia.

- USD/JPY on Tuesday retreated moderately as strength in the dollar weighed on the yen. However, on the negative side, the weakness in stocks also boosted the safe-haven demand for the yen.

- The movement also will be influenced by the resurgence of new COVID-19 infection in the U.S. The spreading pandemic, along with lack of progress on a U.S. stimulus package and caution ahead of the Nov. 3 U.S. presidential election, will dragged the pair’s movement.

- Thursday awaited as Bank of Japan will announced its monetary decisions, followed by briefings from Governor Kuroda.