DAILY MARKET REPORT 26 APRIL
EQUITIES
Shares in Asia-Pacific were mixed on Monday trade. In India, BSE Sensex jumped 1.44% as more countries pledged aid to help the pandemic situation in the country. Japan’s Nikkei 225 rose 0.45% in afternoon trade, the Singapore’s Straits Times index added 0.22%, and the South Korea’s KOSPI traded 0.72% higher.
Elsewhere, the mainland Chinese stocks edged lower, with the Shanghai composite slipped -0.38%, while the Hong Kong Hang Seng shed -0.26%. Australia’s S&P/ASX 200 down -0.16%.
OIL
Oil edged lower as investors assessed the outlook for demand ahead of a key OPEC+ meeting later this week.
The Brent crude futures traded at $64.66 per barrel, and U.S. crude futures traded at $61.57 per barrel.
On Friday last week, the Brent closed at $66.11 while WTI ended at $62.14 per barrel.
CURRENCIES
Dollar loitered near 2-month lows ahead of the U.S. Federal Reserve policy meeting later this week. Was last at 90.76 against a basket of major currencies.
10-year U.S. Treasury yields were not far from a recent 6-week low on expectations the Fed will stay accommodative in the meeting.
Turkey's lira edged lower and nearing an all-time low after the new central bank chief signalled that rate hikes would harm the economy.
Bitcoin fell to the lowest in 7-weeks on Monday as it continued to struggle with the $50,000 level. It dropped as low as $47,079 before rebounding at around $52.510.
GOLD
Gold prices inched higher on Monday, helped by a soft dollar. The spot gold jumped to trade at $1,779.10 an ounce and rose to $1,781.60 per ounce for gold futures. Previously closed at $1,776.90 and $1,777.80, respectively.
ECONOMIC OUTLOOK
Asian stocks rose on Monday as risk appetite was aided by recent PMI data showing the world economic recovery from the coronavirus pandemic was well on track, shrugging off earlier concerns about potential higher U.S. taxes on capital gains under the Biden administration.
On the COVID-19 situation in India, the Biden administration has said it will immediately make raw materials needed for India’s coronavirus vaccine production available. The U.S. response comes after Britain, France and Germany also pledged aid to India over the weekend.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 147.19 million, recording more than 3.10 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 108.276 and 108.449.
- Support line of 107.716 and 107.543.
Commentary/ Reason:
The greenback was a shade weaker on the safe-haven Japanese yen at 107.782, not far from its 1-1/2-month low recorded Friday.
The dollar weakened on news of the proposal of a tax hike for high earners by the President Biden. A decline in T-note yields had impairs the dollar’s interest rate differentials and is negative for the dollar.
The yen also count on its strength on Friday’s Japanese economic data that showed the Japan Apr Jibun Bank manufacturing PMI rose in its fastest pace of expansion since the data began in 2018.Also, the Japan Mar CPI rose in its biggest increase in 8 months.
USD/JPY price action is approaching a key support area at the ascending trendline. Typically, this support area has resulted in bullish rebounds. Momentum indicators are bearish with RSI approaching oversold conditions.
