DAILY MARKET REPORT 12 APRIL
EQUITIES
Shares in Asia-Pacific were lower in Monday trade. Mainland Chinese stocks fell as the Shanghai composite fell -0.81% while the Hong Kong’s Hang Seng index dropped -0.98%. In Japan, the Nikkei 225 fell -0.69%. Stocks in Australia slipped as the S&P/ASX 200 shed -0.35%, while the Singapore’s Straits Times index traded -0.40% lower, and the India’s S&P BSE Sensex dipped -2.71%.
The South Korea’s KOSPI meanwhile bucked the overall trend by adding a tad higher by about 0.02%.
OIL
Oil prices were little changed in the morning of Asia trading hours, with international benchmark Brent crude futures hover just below $63, to trade at $62.97 per barrel. U.S. crude futures traded flat at $59.33 per barrel.
On Friday, the Brent closed at $62.95 while WTI ended at $59.32 per barrel.
CURRENCIES
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 92.30 following its decline earlier this month from above 92.8.
The dollar languished near 2-1/2-week lows against major peers on Monday as a decline in Treasury yields restrained the U.S. currency.
The U.S. 10-year Treasury yields retreated to around 1.67%, from a 14-month top of 1.776%.
GOLD
Gold prices slip on higher inflation expectations. The spot gold declined to trade at $1,737.70 an ounce and shed to $1,738.20 per ounce for gold futures. Previously closed at $1,744.20 and $1,744.80, respectively.
ECONOMIC OUTLOOK
Stocks faltered on Monday as investors wait to see if U.S. earnings can justify sky-high valuations, while bond markets could be tested by what should be very strong readings for U.S. inflation and retail sales this week.
Data out this week are expected to show U.S. inflation jumped in March, while retail sales is seen surging.
The banks kick off Q1 earnings season this week with Goldman Sachs, JPMorgan and Wells Fargo scheduled to report on Wednesday.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 135.87 million, recording more than 2.93 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 109.979 and 110.336.
- Support line of 108.824 and 108.468.
Commentary/ Reason:
The Japanese yen traded at 109.562 per dollar, stronger than levels above 110.5 against the greenback seen last week.
A drop in Treasury yields pressured the greenback, as the benchmark 10-year U.S. Treasury retreated.
The yen advance was undercut by reports of rising COVID-19 cases in Japan, that raised alarm over another setback in its recovery from the pandemic.
The USD/JPY pair has rebounded from the 109.14 support level, once again, yet bullish momentum appears weak. Price action may now oscillate between the 109.14 and 111.20 price levels, however, longer-term, the trend remains bullish. Momentum indicators have bearish trajectories.
