EQUITIES
S&P 500 Index : $2,848.42, down -20.02 points or -0.70%
Dow Jones Industrial Average : $23,664.64, down -218.45 points or -0.91%
Nasdaq Composite Index : $8,854.39, gain 45.27 points or 0.51%
European exchanges were in red, except for London's FTSE 100 who gained 0.07%. Germany's DAX down -1.15% and France's CAC down -1.11%. Italy's FTSE MIB Index closed -1.31% lower and pan-European Stoxx 600 index shed -0.35% closed Wednesday.
Asian markets still finding footing in early trade, with Japan's Nikkei 225 lose -0.33%, Hong Kong's Hang Seng rally at 1.13%, China's Shanghai Composite at 0.63% and Singapore’s at 0.75%. South Korea’s KOSPI shed -0.35%. and Australia's S&P/ASX 200 lose -0.58% in early trading.
OIL
Brent crude futures ended the session lower on Wednesday at $29.72 per barrel, a drop of more than $1, while WTI crude futures drop -2.32%, at $23.99 per barrel.
Currently, oil prices declining in the morning of Asian trading hours, with Brent is trading at $29.68 per barrel and WTI is trading at $23.97 per barrel as of writing time.
CURRENCIES
The U.S. DXY stand at 100.20, higher than yesterday index, compared with a basket of its major peers. Dollar rally against some currencies in early trade, including GBP (0.17%), MXN (0.16%), JPY (0.12%), SGD (0.08%), CHF (0.04%), and SEK (0.03%).
Though, dollar deflate against some of major currencies, including against NOK (-0.16%), NZD (-0.13%), RUB (-0.07%), AUD (-0.03%), and DKK (-0.01%) at latest reading.
GOLD
Gold currently trading at $1,692.00 per ounce, while stands around $1,695.90 per ounce for gold futures as of writing time. Previously closed at $1,684.10 and $1,688.50, respectively.
Silver trading at $14.98, platinum trading at $753.00 and palladium trading at $1,729.00.
ECONOMIC OUTLOOK
Asian stocks were set to come under pressure on Thursday as downbeat economic data (China's services activity indicator & U.S ’s latest jobless claims figures) pushed investors to safe havens and growing worries about falling demand sent oil prices lower.
Oil dropped 4% to below US$30 a barrel on Wednesday as U.S. crude stockpiles ticked up and diesel inventories swelled, offsetting OPEC-led cuts in production and hopes for a recovery in demand as some countries ease coronavirus lockdowns.
Surging small cap stocks offer hope of US growth rebound. The small-cap Russell 2000 rose 13.7% in April, as its rally accelerated at the end of the month, when it notched six straight days with gains of at least 1%, its longest streak of such gains in two decades.
Brazil’s central bank slashed interest rates, cutting its benchmark Selic rate by 75 basis points to a record-low 3.00%. Also, the Senate approved on Wednesday a 60 billion-real ($10.5 billion) aid package for the nation’s cities and states.
Bank of England is unlikely to add to its enormous stimulus for Britain’s economy on Thursday, but the historic hit to output and jobs that it is set to spell out will raise the prospect of yet more bond-buying.
New Zealand’s Finance Minister said the government will be running deficits for an extended period and its debt level would increase to levels well beyond previous targets.
To date, number of confirmed worldwide cases for COVID-19 pandemic has now reached more than 3,822,000 today affecting 212 countries and territories around the world and 2 international conveyances, recording 265,000 fatality globally.
TECHNICAL OUTLOOK
[UKOIL]
Our Preference:
- Still following yesterday expectation trend. Long positions with targets at $32.03 and extension at $36.38, which is last month high.
- Any pullback in this could be a buying chance for final target of $36.
Commentary/ Reason:
- Oil price is recovering.
- RSI indicator is mixed to bullish.
- It is trading above both its 200 and 50 Moving Averages.
- Pair’s price is likely to not break the resistance line of $28.61.
