EQUITIES
Shares in Asia-Pacific were mixed on Monday trade. South Korea’s KOSPI and Australia’s S&P/ASX 200 gains more than 1%, rising 1.63%, and 1.03%, respectively in the first session of the week. In Japan, the Nikkei 225 rose 0.48% and the India’s S&P BSE Sensex index added 0.65%.
The mainland Chinese market traded lower, as the Shanghai composite slipped -0.40% and the Hong Kong’s Hang Seng index fell -0.50%. The Singapore’s Straits Times index slipped -0.68%.
OIL
Oil prices edged higher. The Brent crude futures traded at $68.66 per barrel, and U.S. crude futures traded at $65.16 per barrel.
On Friday, the Brent closed at $68.28 while WTI ended at $64.90 per barrel.
CURRENCIES
The dollar index languished near a more than 2-month low against its rivals. The dollar index, which tracks the greenback against a basket of six currencies last at 90.23.
Treasury yields edged up to about 1.6%, after having plunged to a two-month low of 1.4690% on Friday. Traders are bracing for a busy week of auction.
Dogecoin lost more than a third of its price on Sunday after Tesla chief Elon Musk called it a 'hustle' during his guest-host spot on the "Saturday Night Live" comedy sketch TV show. Dogecoin was quoted as low as $0.416 on crypto exchange Binance, down 36% from levels around 0.65 before the show.
GOLD
Gold prices inched higher on Monday to trade near a 3-month peak hit last week after weaker-than-expected US jobs data supported hopes that interest rates will remain low for some time.
The spot gold gained to trade at $1,837.70 an ounce and rose to $1,835.70 per ounce for gold futures. Previously closed at $1,830.70 and $1,831.30, respectively.
Silver gained $27.75, while platinum was up at US$1,256. Palladium rose to $2,847.
ECONOMIC OUTLOOK
Stocks broadly advanced on Monday amid speculation that interest rates will remain low for an extended period due to the receding risk of a rapid acceleration in inflation, while a cyber-attack on a U.S. pipeline operator unnerved markets. European stocks are expected to open higher, following the positive momentum.
Gasoline and crude oil prices hit a 2-year high after the Colonial Pipeline was shut following a ransomware attack.
Data released on Friday showed U.S. job growth unexpectedly slowed in April, a data that could lead to further financial stimulus by the US government. The 266,000 jobs that U.S. firms added last month were "nowhere near" what was expected, a Federal Reserve official said. The U.S. central bank has pledged to keep interest rates near zero until inflation and employment pick up.
Among U.S. corporate earnings due today including Tyson Foods, J2 Global, Duke Energy, Workhorse Group, Marriott International, BioNTech and Occidental Petroleum.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 157.96 million, recording more than 3.28 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 108.818 and 108.945.
- Support line of 108.308 and 108.181.
Commentary/ Reason:
The dollar changed hands at 108.816 per yen, rose 0.25% on mid-day Monday.
The greenback was up as investors continue to assess the previous week’s disappointing U.S. employment report and its implications for monetary policy ahead of inflation data due later in the week.
The yen meanwhile weighted as the Japanese government plans to extend its ongoing pandemic state of emergency from May 11 until May 31.
The USD/JPY has pulled back below the 109.09 support level after failing to build any momentum in the rally attempt. The ascending trendline remains a key support level for the pair. Momentum indicators are bullish, with MACD breaking the zero line.
