DAILY MARKET REPORT 22 APRIL
EQUITIES
Shares in Asia-Pacific were mostly higher on Thursday trade. Japan’s Nikkei 225 led the gains among the regional markets, as it jumped 2.10%, recovering partially from two days of losses earlier in the week. South Korea’s KOSPI advanced 0.52%, Australia’s S&P/ASX 200 rose 0.51%, the Singapore’s Straits Times index added 0.80%, and the Hong Kong’s Hang Seng index nudged 0.46% higher.
Elsewhere, the mainland Chinese Shanghai composite dipped fractionally, to trade at -0.05% lower. India S&P BSE Sensex also tumbled as COVID-19 situation in the country remains serious and weigh on sentiment, as it slipped -0.30%.
Overnight on Wall Street, the Dow Jones Industrial Average rose 0.93% to 34,137.31, Nasdaq Composite improved 1.19% to end at 13,950.22, and the S&P 500 increased 0.93% to close at 4,173.42.
OIL
Oil markets continuing their decline for a third day following concerns over a surprise build in U.S. crude inventories and surging COVID-19 infections in India and other countries. The Brent crude futures traded at $65.06 per barrel, and U.S. crude futures traded at $61.08 per barrel.
Overnight, the Brent closed at $65.32 while WTI ended at $61.35 per barrel.
CURRENCIES
The dollar was pinned near multi-week lows against most major currencies on Thursday as fading gains in U.S. Treasury yields reduced the greenback's interest rate advantage. The dollar index last bought at 91.11. U.S. Treasury yields stayed depressed, languishing near the lowest since March 12.
The European Central Bank decides policy later today, with no change expected.
GOLD
The spot gold retreated to trade at $1,790.60 an ounce and rose to $1,793.20 per ounce for gold futures. Previously closed at $1,793.60 and $1,793.10, respectively.
ECONOMIC OUTLOOK
Asian stocks rebounded today, mirroring the recovery in overnight US markets.
US stocks recovered all their previous session losses as the Dow climbed with investors’ attention shifted to economic recovery progress amid a flurry of corporate earnings releases. The rise in Nasdaq overnight also put the technology sector on radar.
Data from the EIA showed crude inventories unexpectedly edged higher last week, rose by 594,000 barrels to 493 million barrels.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 143.52 million, recording more than 3.05 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 108.321 and 108.486.
- Support line of 107.787 and 107.622.
Commentary/ Reason:
The dollar stood at 107.925 yen, down around 0.10% on the day and close to its 7-week low recorded yesterday.
A decline in T-note yields had weakens the dollar’s interest rate differentials and is negative for the dollar.
The yen also garnered safe-haven support on the likelihood that the Japanese government will declare a state of emergency in Tokyo and Osaka from rising COVID-19 infections. Tokyo reported 843 new infections Wednesday, the most in 3 months.
A strength in Japan’s Nikkei Stock Index today after sliding 2% in each of the last two sessions however hampered yen’s advance and lifted some pressure to the USD/JPY.
