EQUITIES
Stocks in Asia mostly higher on Wednesday. The Shanghai Composite added 0.90%, and the Hong Kong’s Hang Seng index gains 1.31%. The Singapore’s Straits Times index rose 0.54%, and the South Korea’s KOSPI at 1.10% higher. Meanwhile, the Australia’s S&P/ASX 200 down -0.68%, and the Japanese Nikkei 225 lose -0.46%.
Wednesday is the final trading day in 2020 for stocks in Japan and South Korea as their markets will be closed on Thursday.
Overnight on Wall Street, the Dow Jones Industrial Average fell 68.3 points, or 0.22%, to 30,335.67, the S&P 500 lost 8.32 points, or 0.22%, to 3,727.04 and the Nasdaq Composite dropped 49.20 points, or 0.38%, to 12,850.22. European stocks also extended their year-end rally to close at a 10-month high in anticipation of fresh stimulus and as the EU vaccination program got underway.
OIL
Oil prices rebounded overnight as investors hoped that an expanded U.S. pandemic aid stimulus would spur fuel demand and stoke economic growth. The Brent crude futures traded to $51.29 a barrel, while U.S. crude at $48.27.
On Tuesday, Brent closed at $51.09 per barrel, while WTI futures ended at $48.00 per barrel.
CURRENCIES
The U.S. dollar was undermined near a 2-1/2-year low against a basket of major currencies, losing 0.28% to stand at 89.74.
The greenback was within sight of a 2-1/2-year lows against the Australian and New Zealand dollars, at $0.7652 and $0.7181, respectively. The offshore yuan rose 0.2% to 6.5186 per dollar.
GOLD
A sluggish dollar bolstered gold prices, which rose 0.36% to $1,885.20 an ounce, while added to around $1,889.60 per ounce for gold futures. Previously closed at $1,878.40 and $1,882.90, respectively.
Silver trading at $26.43, platinum trading at $1,052.00 and palladium trading at $2,231.00.
ECONOMIC OUTLOOK
Several Asian shares hit a record high on Wednesday as investors stick to a bullish view overall, betting on a strong economic recovery next year.
Uncertainty remains about whether the U.S. Senate would authorize additional stimulus payments, as U.S. Senate Majority Leader Mitch McConnell blocked immediate consideration of the measure calling for an increase in stimulus payments from $600 to $2,000.
China’s 2019 GDP has been revised down to 6.0% (from 6.1%) to 98.65 trillion yuan ($15.12 trillion), according to a statement from the National Bureau of Statistics.
API reported that crude oil stocks fell by 4.8 million barrels last week to about 492.9 million barrels.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 81.975 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 1.789 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 103.972 and 104.348.
- Support line of 103.220 and 102.844.
Commentary/ Reason:
- The greenback weakened 0.25% against the Japanese yen greenback at 103.275 per dollar, touched a new weekly low for the pair earlier today.
- USD/JPY posted losses on stronger demand for the yen, as there is increased demand for the yen to purchase Japanese stocks as the Nikkei Stock Index soared to a 30-1/4 year high on Tuesday.
- The hopes of a gradual global economic recovery also supported as risk sentiment improved in the wake of Britain’s trade deal with the EU and on the U.S. President Trump’s decision to approve a new fiscal stimulus package.
