EQUITIES
Asia-Pacific markets were mixed on Wednesday. The Nikkei added 0.25%, the Hong Kong Hang Seng rose 0.21%, and the Singapore’s Straits Times index gained 0.35% higher.
Meanwhile, the South Korea’s KOSPI down by -0.32%, the Australia’s S&P/ASX lost -0.68%, the India’s S&P BSE Sensex index shed -0.69%, and the Shanghai composite retreated -0.03%.
Overnight on Wall Street, the Dow Jones Industrial Average fell 0.07%, to 30,937.04, the S&P 500 lost 0.15%, to 3,849.62 and the Nasdaq Composite dropped 0.07%, to 13,626.07, snapped a five-session streak of gains.
OIL
Oil prices remained stable on Wednesday despite border market struggles. The Brent crude futures traded to $56.11 a barrel, while U.S. crude at $52.81.
On Tuesday, the Brent closed at $55.91 per barrel, while WTI futures ended at $52.61 per barrel.
CURRENCIES
The U.S. dollar was little moved on Wednesday as investors awaited the Fed’s decision for clues. The dollar index flirted with this week’s low at 90.211, last at 90.24.
The Australian dollar down 0.16% versus the greenback at $0.7734, and the New Zealand dollar lost 0.07% to $0.7226.
GOLD
Safe-haven gold slipped to $1,846.90 per ounce, while down around $1,842.50 per ounce for gold futures. Previously closed at $1,850.60 and $1,850.90, respectively.
Silver trading at $25.33, platinum trading at $1,083.00 and palladium trading at $2,251.00.
ECONOMIC OUTLOOK
Asian equities mixed on Wednesday, as investors were cautious about possible roadblocks to a U.S. stimulus plan and ahead of a policy announcement from the Federal Reserve.
The Fed will announce the verdict of its two-day policy meeting later today and is expected to stick to its dovish tone to help speed the economic recovery, with Fed Chair Jerome Powell likely to address inflation in his post-meeting news conference.
The IMF raised its forecast for global economic growth by 5.5% in 2021, an increase of 0.3 percentage points from the October forecast, citing expectations of a vaccine-powered uptick.
The API reported crude oil inventories in the U.S. fell by 5.3 million barrels in the week to Jan. 22. Gasoline stocks rose by 3.1 million barrels.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 100 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 2.156 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 103.949 and 104.147.
- Support line of 103.308 and 103.109.
Commentary/ Reason:
The Japanese yen weakened 0.11% to 103.719 per dollar after a 0.10% gain the previous day.
Traders remained cautious ahead of the conclusion of the U.S. Federal Reserve’s policy meeting on Wednesday.
The yen garnered support after the minutes of December's BoJ meeting yesterday said some policymakers were looking at ways to boost Japan's growth potential.
