EQUITIES
Asia-Pacific markets were lower on Friday. In Japan, the Nikkei 225 declined -1.18%. Mainland Chinese markets were lower by the afternoon - The Shanghai composite shed -0.32% while the Hong Kong’s Hang Seng index declined -0.85%. The South Korea’s KOSPI shed -0.57%, the Singapore’s Straits Times index slipped -1.28%, and the India’s S&P BSE Sensex index down -0.23%. Stocks in Australia’s S&P/ASX 200 declined 1.38%.
Overnight on Wall Street, the Dow Jones Industrial Average fell 0.38%, to finish at 31,493.34, the S&P 500 lost 0.44%, to end at 3,913.97 and the Nasdaq Composite dropped 0.72%, to close at 13,865.36. European stocks also fell after a clutch of disappointing earnings reports from companies including Airbus and Orange.
OIL
Oil prices slid as much as 2% in early trade on Friday, adding to overnight declines, on some profit-taking and worries that refineries shut by a big freeze in the U.S. South will take some time to revive operations and dent crude demand. The Brent crude futures traded to $62.89 a barrel, while U.S. crude at $59.38.
Overnight, the Brent close at $63.93, while WTI futures ended at $60.52 per barrel.
CURRENCIES
Treasury yields edged higher and dollar weakened. The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 90.60 as it eased off from levels above 90.9 seen earlier in the week.
The risk sensitive Australian dollar was on track for a third straight weekly rise, last trading at $0.7765. The NZD edged lower to $0.7215.
Bitcoin retreated, though remained above $51,000. Ethereum once again rose to a record high on Friday.
GOLD
Rising bond yields hurt the appeal of gold, with spot prices hitting a 7-month low of $1,765.10 an ounce, while slipped around $1,764.50 per ounce for gold futures. Previously closed at $1,775.20 and $1,775.10, respectively.
ECONOMIC OUTLOOK
Stocks in Asia-Pacific were lower in Friday trade following rising bond yields and overnight declines for the major indexes on Wall Street, following concerns over inflation as well as worse-than-expected jobless claims data.
U.S. Labor Department report showed initial claims for state unemployment benefits rose to 861,000 last week from 848,000 the prior week.
EIA – U.S. crude stockpiles fell more than expected in the week to Feb 12, before the freeze, with inventories down by 7.3 million barrels to 461.8 million barrels, their lowest since March.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 110.289 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 2.441 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 106.491 and 106.902.
- Support line of 105.163 and 104.752.
Commentary/ Reason:
The dollar bought 105.663 yen, little changed following a 2-day retreat from the 5-month high of 106.217 reached Wednesday.
A slide in stocks that is supposedly boosted the safe-haven demand for the yen were limited after a report that BOJ Governor Kuroda met with Japanese PM Suga regarding the BOJ's policy review and monetary easing.
Japan’s CPI declined 0.6% in January as compared with a year earlier, marked the sixth straight month of annual declines according to data released Friday by the country’s Statistics Bureau.
