EQUITIES
Asian share markets are mixed in early trading, as Hong Kong's Hang Seng up 0.06%, Singapore’s up 0.54%, South Korea’s KOSPI appreciated 0.67%. Mainland Chinese stocks, China's Shanghai Composite retreated -0.32%, Nikkei 225 down -0.63%, and Australia S&P/ASX 200 loss -0,69% in early trading.
Overnight, The Dow Jones Industrial Average rose 0.62%, while the S&P 500 gained 0.36%. The Nasdaq Composite climbed 0.35%.
OIL
Oil prices little changed in the morning of Asian trading hours. Brent crude futures traded to $44.40 a barrel, while U.S. crude at $41.62.
On Tuesday, Brent closed at $44.43 per barrel, lifted to its highest since March, while WTI futures ended at $41.70 per barrel.
CURRENCIES
The dollar was under pressure on Wednesday from a towering euro and crumbling U.S. yields. The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 93.10 after declining from levels above 93.6 seen earlier.
The Japanese yen traded at 105.54 per dollar after touching levels around 106.4 earlier in the trading week. The Australian and New Zealand dollars edged ahead, to climb back towards multi-month highs hit last week.
GOLD
Gold prices breached the $2,000 level for the first time. The bullion has soared 33% so far this year, supported by lower interest rates and safe haven buying on concerns Fed monetary policy and government stimulus are debasing the dollar.
Gold currently trading at $2,017.10 per ounce, while stands around $2,035.10 per ounce for gold futures. Previously closed at $2.,019.40 and $2,021.00, respectively.
Silver trading at $25.83, platinum trading at $926.00 and palladium trading at $1,997.00.
ECONOMIC OUTLOOK
Asia shares were set to open lower on Wednesday, following a choppy trading session on Wall Street and losses in Europe, apart from uncertainty over the state of coronavirus relief negotiation in U.S. and Beirut explosion.
Investor focus on Wednesday was likely on coronavirus deal negotiations, as lawmakers remain divided over issues such as unemployment insurance, despite negotiations and talks so far. Two more negotiating sessions were expected today.
China’s services sector in July showed a slower expansion. The Caixin/Markit Services PMI came in at 54.1, lower than June’s reading of 58.4.
Japan’s services sector contracted for a sixth straight month in July. The PMI edged up to a seasonally adjusted 45.4 in July, hardly an encouraging change from 45.0 in June.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 18.701 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 704 thousand fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 106.087 and 106.538.
- Support line of 104.569 and 104.172.
Commentary/ Reason:
- The Japanese yen rose to 105.56 per dollar.
- Both Stochastic and RSI oscillators entered undervalued ranges.
- The MACD is trading below its signal line and negative. The configuration is negative.
