EQUITIES
S&P 500 Index : $2,870.12, down -60.20 points or -2.05%
Dow Jones Industrial Average : $23,764.78, down -457.21 points or -1.89%
Nasdaq Composite Index : $9,002.55, down -189.79 or -2.06%
European exchanges recording mixed results, with London's FTSE 100 that gained 0.93%. Germany's DAX shed -0.05% and France's CAC shed -0.39%. Italy's FTSE MIB Index closed 1.02%% higher and pan-European Stoxx 600 index gained 0.26% closed Tuesday.
Stocks in Asia Pacific traded lower on Wednesday as caution remains over a recent resurgence in coronavirus cases in certain countries regionally, with Japan's Nikkei 225 shed -1.06%, Hong Kong's Hang Seng dropped -1.45%, China's Shanghai Composite down -0.11% and Singapore’s lose -0.90%. Meanwhile, shares in Australia also traded lower, as the S&P/ASX 200 dipped -1.35%, while South Korea’s KOSPI declined -0.55% in early trading.
OIL
Brent crude futures ended the session higher on Tuesday at $29.98 per barrel, a rise of 1.18%, while WTI crude futures rally 6.79%, at $25.78 per barrel.
Currently, oil prices traded higher in the morning of Asian trading hours, with Brent is trading at $29.53 per barrel and WTI is trading at $25.43 per barrel as of writing time.
CURRENCIES
The U.S. DXY stand at 99.97, lower than yesterday index, compared with a basket of its major peers.
Except rallying against CAD (0.51%), and JPY (0.05%), dollars depreciate against some of other major currencies, including against SEK (-1.01%), EUR (-0.37%), CHF (-0.37%), MXN (-0.21%), RUB (-0.15%), NOK (-0.12%), AUD (-0.10%), NZD (-0.08%), DKK (-0.05%), SGD (-0.04%), and GBP (-0.02%) at latest reading.
GOLD
Gold currently trading at $1,705.10 per ounce, while stands around $1,708.50 per ounce for gold futures as of writing time. Previously closed at $1,701.70 and $1,706.80, respectively.
Silver trading at $15.51, platinum trading at $761.00 and palladium trading at $1780.00.
ECONOMIC OUTLOOK
Asian equities were set to pull back on Wednesday as heightened concerns about coronavirus infections and the timing for a vaccine outweighed the lift from rebounding oil prices and upbeat corporate earnings in Europe.
Oil climbed to the highest level since early April after the U.S. government lowered its output forecast for the year.
U.S. officials reported a record $738 billion budget deficit in April as an explosion in government spending and a shrinking of revenues amid the novel coronavirus pandemic pushed it deeply into the red.
India to provide $266 billion to boost pandemic-hit economy. The package was equivalent to 10% of India’s GDP, and was aimed at the multitudes out of work and the businesses reeling under the prolonged shutdown.
To date, number of confirmed worldwide cases for COVID-19 pandemic has now reached more than 4,342,000 today affecting 212 countries and territories around the world and 2 international conveyances, recording 293,000 fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Our Preference:
- Short positions above 107.337 with targets at 107.080, and extension at 106.871.
Commentary/ Reason:
- While the price is expected to drop, we expect slight pullback for above 107.337.
- The pair’s 50 Moving Average is trading above the price, while its 200 Moving Average is trading below the price.
- Dollar weakening against safe haven Yen.
The RSI is around its neutrality area at 50.
