EQUITIES
Asian share markets rose, as Japan's Nikkei 225 gained 1.85%., Hong Kong's Hang Seng gained 1.01%, China's Shanghai Composite up 0.20% and Singapore’s rose 0.90%. Shares in Australia also traded higher, as the S&P/ASX 200 rose 1.42 %, and South Korea’s KOSPI up 1.61% in early trading.
European shares ended a volatile session higher on Monday, lifted by strong gains on Wall Street and a rally in cyclical stocks as improving data spurred hopes of a faster economic recovery.
OIL
Oil slipped in the morning of Asian trading hours. Brent crude futures fell 13 cents to $41.58 a barrel, while U.S. crude lost 20 cents to $39.50.
On Friday, Brent closed at $41.71 per barrel, while WTI futures ended at $39.70 per barrel.
CURRENCIES
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 97.45, showing little movement since earlier trading day.
The Japanese yen traded at 107.70 per dollar after weakening sharply from levels below 107.5 yesterday. The Australian dollar changed hands at $0.6871 after dipping to levels around $0.685 yesterday.
Dollar held onto gains against the yen and the Swiss franc as the recent increase in coronavirus cases supported safe-haven demand for the greenback.
China’s yuan held steady at 7.0683 per dollar in the offshore market as China’s PMI showed optimism.
GOLD
Gold currently trading at $1,771.00 per ounce, while stands around $1,782.80 per ounce for gold futures as of writing time. Previously closed at $1,772.60 and $1,781.20, respectively.
Silver trading at $17.79, platinum trading at $808.00 and palladium trading at $1,834.00.
ECONOMIC OUTLOOK
Stocks in Asia Pacific rose in Tuesday morning trade as China’s official manufacturing PMI for June came in above expectations.
China manufacturing PMI rose to a three-month high of 50.9 in June from 50.6 in May, suggesting the country’s economic recovery is gaining traction.
Through the $500 billion Primary Market Corporate Credit Facility, Fed opens primary market corporate bond facility.
Japan’s industrial production in May dropped 8.4% month-on-month, while its jobless rate rises to 2.9%.
To date, number of confirmed worldwide cases for COVID-19 pandemic has passed reached more than 10.242 million today affecting 213 countries and territories around the world and 2 international conveyances, recording more than 504 thousand fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 107.885 and 108.822.
- Support line of 106.692 and 105.995.
Commentary/ Reason:
- Dollar climbed to 107.695, having touched a three-week high of 107.885, though it was capped by its 100-day moving average around that level.
- Stochastic and RSI indicators are closing into overbought range.
- MACD is trading below its signal line and positive.
