EQUITIES
Asia-Pacific markets were higher on Tuesday. Australia’s ASX 200 climbed 0.94%, the Nikkei 225 in Japan up 0.59%, Singapore’s Straits Times index advanced 0.06%, and the India’s S&P BSE Sensex index rose 0.063%. The South Korea’s KOSPI added 0.40%, the Shanghai composite up 0.24%, and the Hong Kong’s Hang Seng index rose 0.62%.
Overnight on Wall Street, the Dow Jones Industrial Average rose 0.53%, to 32,953.46, the S&P 500 gained 0.65%, to 3,968.94 and the Nasdaq Composite added 1.05%, to 13,459.71, while the European stocks ended mostly flat.
OIL
Oil slipped as the dollar ticked higher. The Brent crude futures traded to $68.41 per barrel, while the U.S. crude futures at $64.96 per barrel.
Overnight, the Brent closed at $68.88 for Brent while WTI futures ended at $65.39 per barrel.
CURRENCIES
The U.S. dollar was flat on Tuesday to hold around 91.78. The yield on 10-year Treasuries decreased two basis points to 1.61% ahead of the Fed meeting and the latest government debt auctions.
Bitcoin takes breather to trade around $60,000 after retreated from record near $62,000 as investors digested a potential ban from India on cryptocurrencies.
GOLD
Bounce in Treasury yields kept gold prices gains in check. Gold spot slipped to trade at $1,734.50 an ounce, while rose around $1,732.80 per ounce for gold futures. Previously closed at $1,731.00 and $1,729.20, respectively.
ECONOMIC OUTLOOK
Asian stocks opened stronger Tuesday following a relatively subdued start to the global trading week as investors look ahead to the Fed meeting stateside. Long-term Treasury yields edged lower.
The U.S. FOMC will kick off its 2-day meeting today, with expectations that the central bank will revise its economy forecast following the $1.9 trillion fiscal stimulus aid.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 120.20 million, recording more than 2.66 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 109.607 and 110.092.
- Support line of 108.637 and 108.152.
Commentary/ Reason:
The greenback rose slightly against the yen to 109.181 yen, hovered just off its highest since June 2020, touched overnight.
The firmer tone for the dollar came despite a retreat in U.S. benchmark yields from the highest levels in more than a year ahead of the Fed meeting. The dollar has been supported by a paring of bets for its decline, with speculators cutting net short positions to the lowest since mid-November in the week ended March 9.
The rally in global equity markets also curbed the yen’s safe-haven appeal.
Next, investors are turning their focus to the extensive policy review by the U.S. Fed’s on Wednesday and on the Bank of Japan monetary meetings on Friday this week.
