EQUITIES
Asia-Pacific markets traded mixed on Thursday. Japan’s Nikkei 225, South Korea’s KOSPI, and Hong Kong’s Hang Seng index on the gain side at 0.53%, 0.02%, and 0.01%, respectively.
Meanwhile, Australia’s S&P/ASX 200 retreated -0.62%, Singapore’s Straits Times index slipped 0.73%, and the Shanghai composite down -0.13%.
Overnight on Wall Street, the Dow Jones Industrial Average fell 215.99 points, or 0.72%, to 29,830.25, the S&P 500 lost 10.71 points, or 0.29%, to 3,624.7 and the Nasdaq Composite added 43.83 points, or 0.36%, to 12,081.16.
OIL
Unexpected drop in weekly U.S. crude inventories extended a rally in oil prices. Brent crude futures traded to $48.90 a barrel, while U.S. crude at $45.90.
On Wednesday, Brent closed at $48.61 per barrel, while WTI futures ended at $45.71 per barrel.
CURRENCIES
The dollar index against a basket of six other currencies was near the lowest in more than 2 months, fell to 91.93 points on Thursday.
The Australian dollar fell 0.04% versus the greenback to $0.736. The New Zealand dollar traded near its strongest level in more than 2 years. Korean won traded at 1,104.85 per dollar, as compared to an earlier low of 1,107.30 against the greenback, following the announcement by the Bank of Korea to held steady on its key policy rate at a record low of 0.5%.
GOLD
Gold regained slightly. Currently trading at $1,810.70 per ounce, while stands around $1,807.90 per ounce for gold futures. Previously closed at $1,808.10 and $1,805.50, respectively.
Silver trading at $23.41, platinum trading at $967.00 and palladium trading at $2,247.00.
ECONOMIC OUTLOOK
Asian stocks looked to trade mixed on Thursday following the rally that propelled global equities to all-time highs this month showed signs of stalling after disappointing U.S. economic data and increasing new COVID-19 cases and lockdowns. Aside, investors also reacted to the minutes meeting released by the U.S. Federal Reserve’s November meeting. Wall Street also retreated as traders took profit ahead of the Thanksgiving holidays.
The summary of the Fed meeting indicated that U.S. central bank officials discussed ways of getting more money into the economy, which is still recovering from the coronavirus pandemic.
U.S. Labor Department's data on weekly jobless claims rose more than expected, increased 30,000 to a seasonally adjusted 778,000 for the week ended Nov 21. The personal incomes fell.
Drop in weekly U.S. crude inventories extended a rally in oil prices driven by hopes that a COVID-19 vaccine will boost fuel demand. U.S. oil stockpiles fell 754,000 barrels last week.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 60.333 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 1.420 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 104.861 and 105.110.
- Support line of 104.057 and 103.808.
Commentary/ Reason:
- The Japanese yen strengthened 0.10% versus the greenback to 104.32 per dollar.
- Sentiment for the greenback took a hit after data on Wednesday showed weekly U.S. jobless claims rose more than expected and personal incomes fell.
- Investors also rushed to safe-haven currency and emerging market assets in recent weeks after positive data on COVID-19 vaccine efficacy and signs of stability in U.S. politics, which has weighed broadly on the dollar.
