EQUITIES
Asia-Pacific markets turned sour on mid-morning Monday. Mainland Chinese stocks were lower, as the Shanghai composite down -0.10% and Hong Kong’s Hang Seng index slipped fractionally at -0.01%. South Korea’s KOSPI reverses earlier gains to trade lower at -0.54%, the Australia’s S&P/ASX 200 declined -0.19%, and the India’s S&P BSE Sensex index down -1.11%.
In Japan, the Nikkei 225 rose 0.81%, and the Singapore’s Straits Times index added 0.42%.
U.S. stocks finished mostly lower on Friday as benchmark Treasury yields climbed to the highest levels in a year.
OIL
Crude oil prices were traded steady over $60 per barrel but getting held in check by rising US yields. The Brent crude futures traded to $63.88 a barrel, while U.S. crude at $60.03on Monday.
On Friday, the Brent close at $62.91, while WTI futures ended at $59.24 per barrel.
CURRENCIES
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 90.34 after a recent decline from above 91.
The dollar was sold to multi-year lows against the Australian and New Zealand currencies on Monday, as investors cheered vaccine progress and wagered on the pandemic recovery bringing a global trade boom and an export windfall. The bond sell-off also continued as benchmark yields jumped in both Australia and New Zealand.
The Australian dollar rose to an almost 3-year high of $0.7879 and the kiwi hit $0.7310, touched its best since early 2018.
Bitcoin eased to $56,000 but was still not far from its record high notched earlier today.
GOLD
Gold prices edged higher on Monday to recover from an over 7-month low touched in the previous session as the dollar weakened, although higher U.S. Treasury yields and the rise of cryptocurrencies capped gains.
The bullion trading at $1,788.40 an ounce, while slipped around $1,786.30 per ounce for gold futures. Previously closed at $1,786.40 and $1,77.40, respectively.
ECONOMIC OUTLOOK
Asian share markets inched higher today as expectations for faster economic growth and inflation globally battered bonds and boost commodities, though gains were seen limited as rising real yields also made equity valuations look more stretched in comparison.
The 1-year loan prime rate (LPR) in China was left unchanged at 3.85%, and the 5-year LPR was also kept steady at 4.65%.
Bitcoin continued its ascent to set another record above $58,000 on Sunday after reaching more than $1 trillion in market value for the first time.
Oilfield to restart systems and begin oil and gas output after the abnormally cold weather in Texas and forced the shutdown of up to 4 million bpd of crude production.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 111.365 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 2.466 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 106.491 and 106.902.
- Support line of 105.163 and 104.752.
Commentary/ Reason:
The dollar was up 0.24% on Monday to buy 105.644 yen.
The yen cede ground to the greenback as rising U.S. Treasury yields drew investment flows from Japan. With local yields anchored by the Bank of Japan, the yen remains particularly sensitive to the U.S. bond market.
Investors are wondering how much higher the reflation trade will drive up yields and will be monitoring this week’s testimony from Federal Reserve Chair Jerome Powell for any sign.
Powell is to deliver his semi-annual testimony before Congress on Tuesday and is likely to reiterate a commitment to keeping policy super easy for as long as needed to drive inflation higher.
