EQUITIES
Shares in Asia-Pacific were higher on Thursday trade. The Shanghai composite in mainland China gained 0.72% while the Hang Seng index in Hong Kong rose 0.33%. In Japan, the Nikkei 225 was 0.42% higher while in South Korea, the KOSPI advanced 0.50%. Shares in Australia also nudged higher, with the S&P/ASX 200 up 0.33%. The Singapore’s FTSE Straits Times Index added 0.50%.
Meanwhile over in India, the S&P BSE Sensex index bucked the overall trends, to trade 0.64% lower.
Overnight on Wall Street, the Dow dropped 152.68 points to 34,447.14, to record its third straight day of decline. The S&P 500 slipped 0.18% to 4,219.55. The Nasdaq Composite shed roughly 0.1% to 13,911.75.
OIL
Oil slipped amid an increase in U.S. fuel stockpiles and as Iran nuclear deal talks reconvene in Vienna today. The Brent now traded at $71.67 per barrel, and U.S. crude futures traded at $69.39 per barrel.
Overnight, the Brent closed at $72.22 while WTI ended at $69.96 per barrel.
CURRENCIES
The yield on benchmark 10-year U.S. Treasury notes slipped to 1.486% after it fell below 1.5% for the first time since May 7, helped by a strong auction. The dollar was steady.
The dollar index edged up slightly to trade near 90.170 against its rivals.
Bitcoin rallies 14% to jump above $37,000 after El Salvador passes law to adopt it as legal tender.
GOLD
Gold prices were subdued on Thursday, as investors cautiously waiting for clearer signals on inflation levels and economic growth ahead of U.S. data and the ECB meeting later in the day.
The spot gold slipped to trade at $1,886.70 an ounce and added to $1,889.00 per ounce for gold futures. Previously closed at $1,888.00 and $1,895.50, respectively.
Silver slipped at $27.810 per ounce, platinum slipped to $1,145.40.00, while palladium edged 0.20% higher to $2,778.00.
ECONOMIC OUTLOOK
Asian shares edged higher but held their recent trading range on Thursday as investors focused on U.S. inflation report that may provide clues as to when the U.S. Fed might tighten its dovish monetary policy.
U.S.-China tensions are also in focus, with Joe Biden revoking Trump-era bans on TikTok and WeChat. The president ordered a review of software applications from foreign adversaries and action against those that pose a security risk.
The retail "meme stock" craze continued. Reddit chatter helped Aethlon Medical to soar 388.2%. Shares of prison operator GEO Group and World Wrestling Entertainment rose 38.4% and 10.9%, respectively. However, other meme stocks such as Clover Health, AMC Entertainment and Bed Bath & Beyond closed lower.
El Salvador has become the first country in the world to adopt bitcoin as legal tender after Congress approved President Nayib Bukele's proposal to embrace the cryptocurrency.
Some of the main moves in markets today including the CPI & core CPI data, jobless claims & Treasury budget for the U.S. Traders also awaiting the ECB policy decision and press conference with President Christine Lagarde. A G7 summit meanwhile set to vow delivery of at least 1 billion extra vaccine doses over the next year to help cover 80% of the world’s adult population. Iran nuclear deal talks also reconvene in Vienna today.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 109.777 and 109.957.
- Support line of 109.196 and 109.017.
Commentary/ Reason:
The dollar traded at 109.552 yen, little changed throughout the week and near the middle of the 109.19-110.325 range of the past two weeks.
The tight trading ranges seen so far this month reflect the cautious mood in the market ahead of the inflation numbers. Investors were cautious ahead of the U.S. CPI report this week and the U.S. central bank's meeting next week. Whilst the Fed reassures that this spike in inflation is temporary, policy makers will need to be out in their droves to calm the market.
Strength in Japanese economic data on morning supported the yen. Japan's wholesale prices rose 4.9% in May from a year earlier to mark the biggest increase in 13 years,
However, weighted by BoJ deputy governor Masayoshi Amamiya statement that the BoJ will not hesitate to take additional monetary easing steps if needed.
