DAILY MARKET REPORT 13 APRIL

EQUITIES

 

Shares in Asia-Pacific mostly higher in Tuesday trade. In Japan, the Nikkei 225 rose 1.09% while the South Korea’s KOSPI advanced 1.10%. The Singapore’s Straits Times index traded 0.25% higher, and the India’s S&P BSE Sensex climbed 0.49%. The Australia’s S&P/ASX 200 and the Shanghai composite moves fractionally, little changed from opening to trade at 0.02% and -0.01%, respectively. The Hong Kong’s Hang Seng index rose 0.91%.

The S&P 500 and the Dow Jones indexes retreated from record levels on Monday. Overall, the S&P 500 lost 0.02%, to 4,127.99, the Dow Jones Industrial Average fell 0.16%, to 33,745.4, and the Nasdaq Composite dropped 0.36%, to 13,850.00.

 

OIL

 

Oil edges higher after Yemen-based Houthi movement said it fired missiles on Saudi oil sites. Oil also rose on expectations of crude stocks drawdown for a third straight week, ahead of reports from the API and EIA.

The international benchmark Brent crude futures to trade at $63.63 per barrel, and U.S. crude futures traded at $59.95 per barrel.

Overnight, the Brent closed at $63.28 while WTI ended at $59.70 per barrel.

 

CURRENCIES

 

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 92.27 — largely struggling to recover following last week’s slip from above 92.8.

The dollar was pressured by lower Treasury yields as traders awaited highly anticipated U.S. consumer price data for March. The benchmark 10-year yield was at 1.6764% on Tuesday.

 

GOLD

 

The spot gold declined to trade at $1,731.00 an ounce and shed to $1,732.00 per ounce for gold futures. Previously closed at $1,732.70 and $1,732.70, respectively.

 

ECONOMIC OUTLOOK

 

Shares in Asia-Pacific edged higher in Tuesday morning trade following a subdued finish overnight on Wall Street. The muted moves came as investors waited for the release of inflation numbers due out on Tuesday stateside.

Investors geared up for the start of the corporate reporting season and a key inflation report later this week. Goldman Sachs, JPMorgan, and Wells Fargo will kick off the Q1 earnings season on Wednesday, giving investors a new catalyst to either buy or sell off stocks in a market at all-time highs.

China’s exports in March rose 30.6% from a year ago, according to customs data released Tuesday. The imports jumped 38.1%.

              

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 109.800 and 110.140.

-        Support line of 109.107 and 108.892.

Commentary/ Reason:

  1. The U.S. currency bought 109.737 yen, rose 0.33% today after slipping below 109 last week for the first time since March 25.

  2. The advance in the dollar suggesting that some investors favoured safe havens.

  3. U.S. inflation data for March is due to be published Tuesday. The rising in the U.S. bond yields ahead of the awaited highly anticipated U.S. consumer price data are boosting the dollar, as the dollar/yen is known to be particularly sensitive to interest rates differentials.

  4. Meanwhile earlier today, the Bank of Japan Governor Haruhiko Kuroda preached the benefits of a weak yen currency, saying it helped manufacturers by inflating the value of profits earned overseas. Japanese policymakers have traditionally been sensitive to unwelcome yen spikes that hurt the export-reliant economy.

  5. The yen also was undercut by reports of rising COVID-19 cases in Japan, that raised alarm over another setback in its recovery from the pandemic.

USDJPY