EQUITIES

Asian shares mostly positively traded on Tuesday. The Nikkei 225 advanced 0.40%, South Korea’s KOSPI 0.47% higher, Australia’s S&P/ASX 200 gained 0.59% and Singapore’s up 0.21%. Meanwhile, mainland Chinese stocks and the Shanghai composite slipped -0.34% and -0.64%, respectively, reversing earlier gains.

OIL

Oil prices edged lower in early trade on Tuesday on worries about a possible rise in COVID-19 cases. Brent crude futures traded to $41.95 a barrel, while U.S. crude at 39.02.

On Monday, Brent closed at $42.01 per barrel, while WTI futures ended at $39.13 per barrel.

CURRENCIES

The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 93.14 after earlier seeing levels above 93.0.

The Australian dollar changed hands at $0.7278. The New Zealand dollar also lifted very slightly from overnight lows hit following a Sunday statement from the central bank which again raised the prospect of negative rates.

GOLD

Gold prices eased on Tuesday as the dollar strengthened. Gold currently trading at $1,923.20 per ounce, while stands around $1,929.80 per ounce for gold futures. Previously closed at $1,928.50 and $1,934.30, respectively.

Silver trading at $26.73, platinum trading at $906.00 and palladium trading at $2,184.00.

ECONOMIC OUTLOOK

Asian shares regained some footing on Tuesday following a small bounce in European shares as investors looked to whether high-flying U.S. tech shares could recover from their recent rout.

Fitch Ratings expects global GDP to fall by 4.4% in 2020 its latest Global Economic Outlook (GEO), a modest upward revision from the 4.6% decline expected in the June GEO.

Japan's economy shrank more than initially estimated in the Q2. The world's third-largest economy shrank an annualised 28.1% in April-June, more than a preliminary reading of a 27.8% contraction, revised GDP data showed, suffering its worst post-war contraction.

Meanwhile, Japan's household spending fell 7.6% in July from a year earlier, compared with a median market forecast for a 3.7% decline.

Tensions are also escalating between the U.K. and EU, putting at risk chances of a post-Brexit trade deal in the coming months.

To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 27.486 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 896 thousand fatality globally.

TECHNICAL OUTLOOK

[USDJPY]

Important Levels to Watch for Today:

- Resistance line of 106.442 and 106.555.

- Support line of 106.076 and 105.963.

Commentary/ Reason:

- The Japanese yen traded at 106.28 per dollar after seeing levels below 106.2 yesterday against the greenback.

- The dollar traded firmly against the Japanese yen after Yoshihide Suga, frontrunner to succeed Shinzo Abe signalled in a newspaper interview of a snap election.