EQUITIES

Asia-Pacific markets reverses earlier losses on Asian afternoon trade. Nikkei 225 led the gain by 1.34%, followed by South Korea’s KOSPI at 1.08%. Australia’s S&P/ASX 200 advanced 0.48%, Singapore’s Straits Times index up 0.65%, and Hong Kong Hang Seng jumped 0.88%. Mainland Chinese stock, the Shanghai composite holding on losses at -0.05%.

On Friday, U.S.’s S&P 500 lost 1.21% to close at 3,269.96. The Nasdaq Composite dropped 2.45% while the Dow fell 0.6%.

OIL

Oil prices fell around 3% on Monday on worries on renewed lockdowns across Europe and UK will weaken fuel demand, while traders also braced for volatility around the U.S. presidential election week.

Currently, Brent crude futures traded to $36.68 a barrel, while U.S. crude at $34.46.

On Friday, Brent closed at $37.94 per barrel, while WTI futures ended at $35.79 per barrel.

CURRENCIES

The U.S. dollar held steady on Monday as investors readied for this week’s U.S. presidential election, while a surge in global coronavirus cases continued to weigh on sentiment. The dollar index, which tracks the greenback against a basket of major currencies, last sat at 94.14, rose to a four-week high.

The risk-sensitive Australian dollar slipped 0.4% to go below 70 U.S. cents for the first time since July. It was last at $0.7012. While the kiwi also retreating, last fetching 0.6599 per dollar.

GOLD

Spot gold dropped, currently trading at $1,880.60 per ounce, while stands around $1,882.30 per ounce for gold futures. Previously closed at $1,878.60 and $1,879.90, respectively.

Silver trading at $23.89, platinum trading at $839.00 and palladium trading at $2,120.00.

ECONOMIC OUTLOOK

Asian shares bounced off one-month lows on Monday on positive economic data from China factory activity, while oil prices skidded as many Western countries slid back into coronavirus-driven lockdowns.

China’s manufacturing sector expanding for the sixth straight month in October. The Caixin/Markit PMI came in at 53.6 for October, higher-than-expected.

To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 46.437 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 1.2 million fatality globally.

TECHNICAL OUTLOOK

[USDJPY]

Important Levels to Watch for Today:

- Resistance line of 104.720 and 104.807.

- Support line of 104.441 and 103.355.

Commentary/ Reason:

- The dollar was flat at 104.72 against the Japanese yen on Monday, away from a five-week trough of 104.02 hit on Thursday last week.

- Investors are sticking to the safe harbour currency as Tuesday’s presidential election keeps financial markets on edge, though a surge in global coronavirus cases expected to continue to weigh on sentiment.