EQUITIES
Asia-Pacific markets were lower on Tuesday. In Japan, Nikkei 225 slipped -0.23% on the nation’s lockdown possibility. The Australia’s S&P/ASX 200 at -0.35% lower, the Hong Kong’s Hang Seng index lose -0.27%, and the Shanghai Composite down -0.05%. The Singapore’s Straits Times index dipped -0.29%, and India’s S&P BSE Sensex Index declined -0.15%. Meanwhile, South Korea’s KOSPI is the only one that gains, added 0.25%.
Overnight on Wall Street, the Dow Jones Industrial Average fell 1.27%, the S&P 500 lost 1.49%, while the tech-heavy Nasdaq dropped by 1.48%. Monday marked the first negative start to a year for the Dow since 2016.
OIL
Oil in cautious trade as investors awaited a meeting later where major crude producers are set to assess output levels for February. The Brent crude futures traded to $51.17 a barrel, while U.S. crude at $47.70.
Overnight, Brent closed at $51.09 per barrel, while WTI futures ended at $47.62 per barrel.
CURRENCIES
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 89.76 after rebounding Monday from a 2-1/2-year low of 89.41.
The Australian dollar changed hands at $0.7692 following a recent decline from levels above $0.77.
Bitcoin fell sharply from a record high of US$34,800 recently, with traders citing volatility in highly leveraged futures markets.
GOLD
Gold eased on Tuesday after rising more than 2% in the previous session, as the spot gold trading at $1,937.80 an ounce, while at around $1,945.50 per ounce for gold futures. Previously closed at $1,942.20 and $1,946.60, respectively.
Silver trading at $27.20, platinum trading at $1,052.00 and palladium trading at $2,272.00.
ECONOMIC OUTLOOK
Shares in Asia-Pacific were lower in Tuesday trade following an overnight sell-off on Wall Street amid concern that a surge in global coronavirus cases could crimp the economic recovery, with traders also bracing for key run-off elections in the U.S. Adding to the sentiment is the uncertain outlook in the oil sector.
Investors awaited the runoff elections for both U.S. Senate seats from Georgia that would determine the future course of fiscal support. The elections will decide which party controls the U.S. Senate. A win by Democrats would make it easier for President-elect Joe Biden to push policies such as rewriting the tax code to boosting stimulus.
Major oil producers will meet later Tuesday to decide on output levels for February after talks broke down the previous day.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 85.637 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 1.852 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 103.618 and 103.868.
- Support line of 102.809 and 102.560.
Commentary/ Reason:
- The safe-haven Japanese yen was little changed at 103.01 against the greenback on Tuesday.
- It advanced to 102.712 on Monday, the strongest level since March, as Japan’s PM said the government is considering declaring a state of emergency for Tokyo and several neighbouring areas to stem the spread of the virus. The decision will be decided as early as Thursday.
- Run-off elections in Georgia for two U.S. Senate seats tomorrow also cautiously watched. Democratic win could trigger further dollar weakness, as investors assume it would lead to higher stimulus spending which would in turn boost market sentiment and weigh down on the dollar.
