EQUITIES
Asian share markets mixed, as Mainland Chinese stocks, China's Shanghai Composite up 1.28%, Hong Kong's Hang Seng gained 0.35%, and South Korea’s KOSPI up 0.29%. Meanwhile, shares in Japan traded lower, as the Nikkei 225 loss -0.79%, Singapore’s down -0.23% and Australia S&P/ASX 200 retreated –0.11 in early trading.
The Dow had ended Tuesday 0.77% lower, the S&P 500 lost 0.65, and the Nasdaq Composite dropped 1.27%.
OIL
Oil prices little changed in the morning of Asian trading hours. Brent crude futures traded to $43.27 a barrel, while U.S. crude at $41.01.
On Tuesday, Brent closed at $43.22 per barrel, while WTI futures ended at $41.04 per barrel.
CURRENCIES
The dollar index against a basket of currencies gained 0.18% to 93.74, after dropping to 93.47 on Monday, the lowest since June 2018.
The Japanese yen traded at 105.08 per dollar after strengthening from levels around 105.60 against the greenback yesterday. The Australian dollar traded at $0.7165, near its 15-month peak of $0.7184 touched a week ago.
GOLD
Gold currently trading at $1,958.70 per ounce, while stands around $1,954.80 per ounce for gold futures. Previously closed at $1,956.10 and $1,944.60, respectively.
Silver trading at $24.46, platinum trading at $990.00 and palladium trading at $2,354.90.
ECONOMIC OUTLOOK
Asian stocks under pressure as investors await the U.S. Federal Reserve's interest rate decision and U.S. stimulus impasse.
Investor focus will likely be on the upcoming rate decision by the Fed, expected to be out sometime on Wednesday stateside.
White House and the U.S. Congress were in disarray over their own plan for providing $1 trillion in new coronavirus aid, as negotiations aimed at reaching a compromise bill with Democrats also sputtered.
Australia's Consumer Price Index fell 1.9% in the June 2020 quarter, according to data released by the country's ABS. It is the largest quarterly fall in the 72 years history of the CPI.
Singapore’s jobless rate rose sharply in the Q2 to a new decade-high of 2.9%, provisional data showed on Wednesday. The rate climbed from 2.4% in the Q1, moving within sight of a 3.4% peak hit during the global financial crisis of 2009.
Of the S&P 500 companies that have reported earnings so far this quarter, about 80% surpassed significantly lowered profit forecasts.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 16.893 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 663 thousand fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 105.531 and 106.007.
- Support line of 104.943 and 104.467.
Commentary/ Reason:
- The dollar changed hands at 105.04 yen, having hit a 4 1/2-month low of 104.955 in the previous session.
- Both Stochastic and RSI indicators are within normal range of 50.
- The MACD is trading above its signal line and negative.
