EQUITIES
Asia-Pacific markets lower in Friday trade. Mainland Chinese stocks dipped, with the Shanghai composite declined to 0.75%, and Hong Kong’s Hang Seng index drop -0.43%. Japan’s Nikkei 225 shed -1.03%, Singapore’s Straits Times index down -0.55%, and Australia’s S&P/ASX 200 slipped -0.21%, while South Korea’s KOSPI advanced 0.21% higher.
Overnight on Wall Street, Dow Jones Industrial Average fell 1.08% to end at 29,080.17 points, while the S&P 500 lost 1.00% to 3,537.01. The Nasdaq Composite dropped 0.65% to 11,709.59.
OIL
Crude oil prices fell on Friday on virus-linked economic fears and an unexpected rise in U.S. crude stockpiles. Brent crude futures traded to $42.91 a barrel, while U.S. crude at $40.38
On Wednesday, Brent closed at $43.53 per barrel, while WTI futures ended at $41.12 per barrel.
CURRENCIES
The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 92.96 following its rise this week from levels below 92.8.
The Australian dollar and New Zealand dollar nursed losses made with the risk-averse mood, last held at $0.7226, and $0.6834, respectively, while Chinese yuan was steady at 6.6130 in offshore trade.
GOLD
Spot gold currently trading at $1,879.10 per ounce, while stands around $1,878.50 per ounce for gold futures. Previously closed at $1,876.80 and $1,873.30, respectively.
Silver trading at $24.19, platinum trading at $878.00 and palladium trading at $2,220.00.
ECONOMIC OUTLOOK
Stocks in Asia declined on Friday, as vaccine momentum is starting to fade and the coronavirus cases continue to surge in the U.S., Europe, and Japan, setting daily fresh records.
U.S. jobless claims fell to a 7-month low last week to a seasonally adjusted 709,000, and the pace of job recovery slowed.
Crude inventories rose by 4.3 million barrels last week, compared with an expected fall of 913,000 barrels.
The U.S. government is to start fiscal 2021 with an October budget deficit of $284 billion, a record for the month, the Treasury Department said on Thursday.
New U.S. COVID-19 infections hit fresh records and were above 100,000 for an eighth consecutive day. To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 52.657 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 1.291 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 106.171 and 107.102.
- Support line of 103.159 and 102.228.
Commentary/ Reason:
- The dollar was lower on today trade, was last trading at 104.94 per yen, down 0.18% on the day, as more recorded COVID-19 cases in the region were reported.
- Virus worries helped the yen recoup a little of its losses overnight, lifting it 0.3% against the greenback, but it remains about 1.6% lower for the week, which if sustained would be its sharpest weekly drop since falling 2.5% in the panic of March.
- Japan is not in a situation that requires a state-of-emergency declaration again over the COVID-19 pandemic, Prime Minister Suga said on Friday, adding that experts backed that view.
