EQUITIES
Asia-Pacific markets higher on Wednesday. Japanese Nikkei 225 added 0.21% higher. The Hong Kong’s Hang Seng index added 0.37%, and the Shanghai Composite advanced 0.85%. The Singapore’s Straits Times index rose 0.05%, the South Korea’s KOSPI gains 0.86%, and the Australia’s S&P/ASX 200 0.73% higher.
Overnight on Wall Street, the S&P 500 saw a third straight session of losses as it declined 0.2% to 3,687.26. The Dow Jones Industrial Average slipped 200.94 points to close at 30,015.51. The Nasdaq Composite outperformed as it rose 0.5% to close at 12,807.92, a new record.
OIL
Oil prices back to below $50 as a new coronavirus strain in Britain revived concerns over demand recovery. The Brent crude futures traded to $49.36 a barrel, while U.S. crude at $46.38.
Both Brent and US crude fell more than 1% on Tuesday, as Brent closed at $50.08 per barrel, while WTI futures ended at $47.02 per barrel.
CURRENCIES
The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 90.44 following an earlier recovery.
The Australian dollar changed hands at $0.7551, in a trading week that has seen it at levels around $0.76 to below $0.75. The New Zealand dollar gains 0.21% to $0.7052.
GOLD
Gold prices edged higher over lower economic recovery expectation, trading at $1,864.80 per ounce, while added to around $1,870.40 per ounce for gold futures. Previously closed at $1,859.50 and $1,870.3, respectively.
Silver trading at $25.30, platinum trading at $1,000.00 and palladium trading at $2,200.00.
ECONOMIC OUTLOOK
Asian shares reverse earlier losses on Wednesday as the investor focus swung between concerns about new strain in the of the coronavirus and disappointing U.S. economic data versus on hopes that more U.S. fiscal aid would propel an economic recovery and vaccine rollouts that is gaining momentum. A new remark from U.S. President Trump surrounding the new Covid-19 relief package sent jitters around the market.
U.S. Congress passed a massive COVID-19 aid and government funding package overnight, with the U.S. President-elect Joe Biden said his administration would put forward another COVID-19 relief package next year, including a new round of stimulus payments.
The aid package passed is now awaiting President Trump’s approval to become law, though Trump threatens to not sign it, saying amount in the stimulus checks should be increased.
U.S. consumer confidence dropped for second straight months to a 4-month low in December, while U.S. existing home sales also fell in November. The GDP grew at a record pace in the Q3.
The EU is considering continuing negotiations with Britain past the end of the year, sources said after an update on Brexit by the bloc's negotiator, Michel Barnier.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 77.958 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 1.715 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 103.796 and 103.982.
- Support line of 103.196 and 103.010.
Commentary/ Reason:
- The dollar slipped 0.12% versus the yen to 103.481 yen.
- Earlier on the day, the dollar rose as high as 103.64 before faltered. The dollar advance was halted as President Trump threaten to not approve the long-awaited stimulus bill. Rally in Asian stocks of the day also factored into the tone.
- Meanwhile, in the BoJ’s October monetary policy meeting minutes today, one of the nine board members calling for a tweak to the bank’s huge purchases of risky assets in guiding monetary policy.
