EQUITIES
Asian share markets traded firmer, as China's Shanghai Composite led and soars 3.95%. Japan's Nikkei 225 rose 1.37%, Hong Kong's Hang Seng gained 2.54%, and Singapore’s rose 0.71%. Shares in Australia also traded higher, as the S&P/ASX 200 rose 0.11%, and South Korea’s KOSPI up 1.40% in early trading.
OIL
Oil edged higher in the morning of Asian trading hours. Brent crude futures traded to $42.92 a barrel, while U.S. crude traded to $40.37.
On Friday, Brent closed at $42.80 per barrel, while WTI futures closed in observance of the Independence Day.
CURRENCIES
The U.S. dollar index was last at 97.00 having spent an entire month in a snug band of 95.714 to 97.808.
The dollar held steady against most currencies on Monday as investors awaited data expected to show the U.S. services sector stopped contracting.
The euro moved in a narrow range before economic data from Germany and the eurozone that are also forecast to show a sharp rebound in corporate activity and retail sales, which would ease concerns about the economic outlook.
The onshore yuan rose slightly to 7.0562, drawing strength from a jump in Chinese share prices to their highest in five years.
GOLD
Gold currently trading at $1,772.70 per ounce, while stands around $1,782.40 per ounce for gold futures as of writing time. Previously closed at $1,774.40 and $1,790.00, respectively on its last day of trading.
Silver trading at $18.00, platinum trading at $806.00 and palladium trading at $1,842 .00.
ECONOMIC OUTLOOK
Asian shares scaled four-month peaks on Monday, with Shanghai Composite up more than 3%, as investors counted on super-cheap liquidity and fiscal stimulus to sustain the global economic recovery, even as surging coronavirus cases delayed re-openings across the U.S.
Chilean President announced on Sunday a new $1.5 billion coronavirus package of measures to help keep the country´s ailing middle class afloat. Measures include access to zero-interest loans, subsidized rent, and the ability to defer mortgage loan payments for up to six months.
Tensions between Washington and Beijing will also be watched, with Reuters reporting over the weekend that two U.S. aircraft carriers were sent to the South China Sea during Chinese drills.
To date, number of confirmed worldwide cases for COVID-19 pandemic has passed reached more than 11.557 million today affecting 213 countries and territories around the world and 2 international conveyances, recording more than 537 thousand fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 108.264 and 108.822.
- Support line of 106.692 and 106.074.
Commentary/ Reason:
- The dollar edged up to 107.676 yen on Monday in Asia following a 0.3% gain last week. Yen drifted lower against most major currencies as gains in Asian share prices encouraged some risk-on trades.
- Stochastic and RSI indicators signalling that the indicators are both entering the overvalued ranges.
- The MACD is trading above its signal line and positive. The configuration is positive.
