EQUITIES
Asian share markets pulled back from weak start of the week, as Japan's Nikkei 225 rose 0.11%, Hong Kong's Hang Seng gained 0.40%, China's Shanghai Composite up 2.62% and South Korea’s KOSPI up 0.01%. Meanwhile, shares in Australia traded lower, as the S&P/ASX 200 down -0.43%, and Singapore’s down -0.36%. in early trading.
OIL
Oil prices retreated in the morning of Asian trading hours. Brent crude futures traded to $42.93 a barrel, while U.S. crude at $40.41.
On Friday, Brent closed at $43.14 per barrel, while WTI futures ended at $40.59 per barrel.
CURRENCIES
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 96.15, recovering from levels above 95 earlier.
The Japanese yen traded at 107.34 per dollar, after a turbulent previous week where it traded at around levels between 106 and 107. The Australian dollar touched the 0.70 level briefly, before falling back to 0.6985.
The dollar is broadly weak as investors maintained strong risk appetite, betting on more stimulus not just from Europe but also the U.S.
GOLD
Gold prices inched up, rising above the $1,800 level. Trading at $1,807.30 per ounce, while stands around $1,809.10 per ounce for gold futures. Previously closed at $1,810.30 and $1,800.00, respectively.
Silver trading at $19.29, platinum trading at $830.00 and palladium trading at $1,977.00.
ECONOMIC OUTLOOK
Stocks in Asia Pacific mostly tumbled on Monday as China maintained its benchmark lending rate for the third straight month, while investor focus is also on EU Summit where leaders are haggling over a plan to revive economies throttled by the coronavirus pandemic.
China kept its benchmark lending rate for the one-year loan prime rate (LPR) at 3.85%, while the five-year LPR remained at 4.65%.
Japan’s exports dived 26.2% in June YoY, data showed, and imports fell 14.4%.
To date, number of confirmed worldwide cases for COVID-19 pandemic has reached more than 14.644 million today affecting 213 countries and territories around the world and 2 international conveyances, recording more than 609 thousand fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 107.550 and 108.165.
- Support line of 106.683 and 106.074.
Commentary/ Reason:
- The Japanese yen was little changed at 107.341 per dollar.
- Stochastic and RSI oscillators both pulled back from overbought ranges.
- The MACD is trading above its signal line and positive. The configuration is positive.
