EQUITIES
Asia-Pacific markets were mixed on thinned trade Thursday. The Hong Kong’s Hang Seng index rose 0.45%, and the India’s S&P BSE Sensex index at 0.32% higher. Meanwhile, the Singapore’s Straits Times index down -0.12%, and The Australia’s S&P/ASX slipped -0.06%.
Markets in China, Japan, South Korea, and Taiwan are closed for Lunar New Year celebrations holidays.
Overnight on Wall Street, the Dow Jones Industrial Average edged 61.97 points higher to a record closing high of 31,437.80. The S&P 500 declined less than 0.1% to finish its trading day at 3,909.88 while the Nasdaq Composite closed 0.25% lower at 13,972.53.
OIL
Oil prices declined on Thursday, giving up some of the recent strong gains, with international benchmark Brent crude futures traded to $61.09 a barrel, while U.S. crude at $58.447.
On Wednesday, the Brent close at $61.47, while WTI futures ended at $58.68 per barrel. The crude had rose for the ninth day, its longest winning streak in two years.
CURRENCIES
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 90.38 as it struggled to recover, posting its third day of losses.
Australian dollar changed hands at $0.7735, mostly holding on to gains after its rise from below $0.768 earlier in the trading week. The New Zealand dollar was broadly steady at $0.7222. The offshore yuan fell 0.2% to 6.4304 per dollar.
Oil-exporting countries peer currencies traded well on continued buying interest, supported by higher oil prices.
Bitcoin has dropped about 8% from Tuesday's record high and traded at $44,950 on Thursday. U.S. Treasury Secretary Janet Yellen on Wednesday warned about an “explosion of risk” from digital markets, including the misuse of cryptocurrencies.
GOLD
Gold was sidelined as investors drove platinum to a 6-year high on expectations on recovery in industrial demand and stricter emissions rules.
Gold down to trade at $1,837.40 per ounce, while shed around $1,838.70 per ounce for gold futures. Previously closed at $1,843.70 and $1,842.70, respectively.
Silver trading at $26.80, while platinum trading at $1,237.00 and palladium trading at $2,272.00.
ECONOMIC OUTLOOK
Asian stocks are poised to churn lower on Thursday as investors assess what the latest U.S. inflation reading means for aid prospects. Asia trade expected to be thin on Lunar New Year holidays in Japan China and South Korea.
The U.S. Fed Chair Jerome Powell on webinar session Wednesday said that policy will need to stay “patiently accommodative”, while also said that the U.S. is still “a long way” from where it needs to be in terms of employment and called for a more comprehensive approach.
U.S. CPI rose moderately in January. The core inflation last month was zero, against market expectations of 0.2%.
Data by the EIA showed that U.S. crude inventories fell by 6.6 million barrels in the week to Feb 5 to 469 million barrels. Data from API on Tuesday showed crude inventories fell by 3.5 million barrels in the week to Feb 5 to about 474.1 million barrels.
Q4 earnings have so far also exceeded expectations.
o date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 107.323 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 2.353 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 105.528 and 105.518.
- Support line of 104.292 and 104.002.
Commentary/ Reason:
The safe-haven Japanese yen little changed to 104.591 per dollar, after hit a 2-week peak of 104.413 overnight.
Asia trade was thinned by Lunar New Year holidays in Japan, South Korea, and China.
Moves by the pair faltered on dovish comments from Fed Chair Powell that reassuring investors interest rates will remain low. Federal Reserve Chair Jerome Powell said he wanted to see inflation at 2% or more before even thinking of tapering the bank’s super-easy policies.
Yen turned bearish after report by Bloomberg on Wednesday that said that BoJ has room to cut its interest rate further below zero. Although the BOJ is not planning a cut in its benchmark rate from -0.1% right now, it wants to ensure that it can cut rates further in case the policy becomes necessary in a crisis.
