EQUITIES

Asia-Pacific markets lower on Asian afternoon trade. In Japan, the Nikkei 225 declined -0.32%, Australia’s S&P/ASX 200 down -0.64%, South Korea’s KOSPI shed -0.77%, Singapore’s Straits Times index fell -0.73%. Shanghai composite at -0.13% lower and Hang Seng index in Hong Kong retreated -0.20%.

Wall Street’s main indexes closed lower on Monday. The Dow Jones Industrial Average fell 410.89 points, or 1.44%, to 28,195.42, the S&P 500 lost 56.89 points, or 1.63%, to 3,426.92 and the Nasdaq Composite dropped 192.67 points, or 1.65%, to 11,478.88. European stocks also declined amid concerns over Brexit and rising coronavirus cases.

OIL

Oil prices slipped, partly as Libya plans to boost its output. Brent crude futures traded to $42.36 a barrel, while U.S. crude at $40.56.

On Monday, Brent closed at $42.62 per barrel, while WTI futures ended at $40.83 per barrel.

CURRENCIES

The dollar index traded in a tight range of 93.20 to 93.75, was last at 93.41, as global surge in COVID-19 cases and an impasse over the stimulus package stoked caution.

The yuan held near a 2-year high against the dollar in offshore trade on Tuesday on LPR statement and recovery in China’s consumer sector. The Australian dollar changed hands at $0.7043 after slipping from levels above $0.71 yesterday. The Australian dollar is on the defensive after three straight days of loss on speculation about further monetary easing by the RBA next month. The New Zealand dollar fell to $0.6578, down 0.4%.

GOLD

Gold rose as dollar pared. Spot gold currently trading at $1,900.60 per ounce, while stands around $1,903.20 per ounce for gold futures. Previously closed at $1,903.20 and $1,911.70, respectively.

Silver trading at $24.38, platinum trading at $849.00 and palladium trading at $2,230.00.

ECONOMIC OUTLOOK

Stocks in major Asia-Pacific markets dipped in Tuesday trade as investors react to the October fixing of China’s benchmark lending rate, and as a deadline for U.S. lawmakers to pass an economic stimulus bill approached. Daily recorded coronavirus infections in Europe also ignited concerns about more severe lockdowns.

China’s latest 1-year and 5-year loan prime rates were left unchanged on Tuesday. The 1-year LPR sits at 3.85% while the 5-year rate is at 4.65%.

Washington lawmakers still appeared to struggle to reach an agreement on coronavirus stimulus ahead of a Tuesday deadline that would make a relief package possible ahead of the Nov. 3 elections.

To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 40 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 1.112 million fatality globally.

TECHNICAL OUTLOOK

[USDJPY]

Important Levels to Watch for Today:

- Resistance line of 105.559 and 105.655.

- Support line of 105.246 and 105.149.

Commentary/ Reason:

- The Japanese yen traded at 105.556 per dollar after swinging above the 5-day low of 105.614 earlier today.

- The situation happened on report that the Bank of Japan is expected to cut this fiscal year’s economic and price forecasts when it issues fresh quarterly projections at next week’s rate review.

- USD/JPY on Tuesday were also modestly higher as the dollar strengthened on renewed hope for U.S fiscal package and expectations of a coronavirus vaccine by the end of this year.