EQUITIES
Asia-Pacific markets traded mostly lower on Wednesday, except for the Singapore’s Straits Times index and the India’s S&P BSE Sensex index that rose 1.31% and 0.67%, respectively.
Japanese markets returned to trade after being shut on Tuesday for a public holiday. The Nikkei 225 fell -0.93%. The Shanghai composite down -1.55% while the Hong Kong’s Hang Seng index slipped -1.92%. South Korea’s KOSPI at -0.75% lower and the Australia’s S&P/ASX 200 retreated -0.84%.
Overnight, the Dow Jones Industrial Average rose 0.05%, to 31,537.35, the S&P 500 gained 0.13%, to 3,881.37 and the Nasdaq Composite dropped 0.5%, to 13,465.20. European shares also ended lower, as high sovereign bond yields pressured heavyweight sectors such as technology, while a batch of mixed corporate earnings cast doubt.
OIL
Oil prices fell after industry data showed U.S. crude stockpiles unexpectedly rose last week. International benchmark Brent crude futures traded to $65.10 per barrel, while the U.S. crude futures at $61.18 per barrel.
Overnight, the Brent close at $65.37, while WTI futures ended at $61.67 per barrel.
CURRENCIES
The dollar index against a basket of six major currencies flat at 90.12, after earlier touching lows around 89.982.
U.S. yields retreated slightly after Powell's comments.
Risk-sensitive currencies and commodities currencies rose, pushing the kiwi, Aussie, and sterling to their highest levels since early 2018, as investors increased bets that a global economic recovery will boost riskier assets.
The Australian dollar changing hands at $0.7904. The New Zealand dollar rose 0.40% after central bank announcement, settling at $0.7364.
Bitcoin at around $50,800 after a two-day selloff.
GOLD
Gold rose, bolstered by a weaker U.S. dollar and a retreat in US Treasury yields, trading at $1,809.10 an ounce, while added around $1,808.50 per ounce for gold futures. Previously closed at $1,806.50 and $1,805.90, respectively.
Silver at $27.723 an ounce. Platinum at $1,238.00, while palladium at $2,236.00.
ECONOMIC OUTLOOK
Asian equities set for mixed trading on Wednesday as investors turned cautious on concerns about rising interest rates and rich equity valuations and following a downdraft in U.S. and European overnight trading, despite remarks overnight from Fed’s Chair that attempted to ease some worries.
U.S. Federal Reserve chair Jerome Powell reiterated in testimony before the Senate Banking Committee that monetary policy would remain accommodative and would not change without advance warning, stressing that the U.S. economy is a long way from its employment and inflation goals.
US consumer confidence rose to a reading of 91.3 this month, from 88.9 in January. House prices soared 10.1% from a year ago.
API data - Crude stockpiles rose by 1 million barrels in the week to Feb. 19, against the expectation of drawdown.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 112.093 million, recording more than 2.485 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 105.837 and 106.202.
- Support line of 104.657 and 104.292.
Commentary/ Reason:
The safe-haven Japanese yen slipped, was at 105.478 per dollar on Wednesday.
USD/JPY recovered from a 1-week low overnight and pushed moderately higher. Trading in the yen was subdued as the Japanese markets returned to trade after being closed Tuesday for the Emperor's Birthday.
U.S. Fed Chair Powell calmed fears of rising interest rates in his testimony on Tuesday. Powell told a U.S. Senate Banking Committee hearing that the recovery remains "uneven and far from complete," and that it will be "some time" before the Fed considers changing policies.
