EQUITIES

Asian share markets under pressure on early trading day today. Singapore’s dipped -0.04%, Hong Kong's Hang Seng loss -0.13%, China's Shanghai Composite down -1.98%, South Korea’s KOSPI down -1.12% and the Australia’s S&P/ASX 200% -0.03% in early trading.

Markets in Japan are closed for a public holiday.

OIL

Oil prices little changed in the morning of Asian trading hours. Brent crude futures traded to $44.23 a barrel, while U.S. crude at $41.84.

On Wednesday, Brent closed at $44.29 per barrel, while WTI futures ended at $41.90 per barrel.

CURRENCIES

In the currency market, the dollar index, which measures the greenback against a basket of its peers, last traded at 94.98.

The Australian dollar pulled back from a 15-month peak and was steady at $0.7135, while NZD retreated slightly from a 6-month top to sit at $0.6667.

Heightened Sino-U.S. tension put the yuan on its sharpest slide in nearly two months on Wednesday and helped the greenback find support in Asian trade on Thursday.

GOLD

Gold soared to a nine-year peak, boosted by a dollar sell-off and expectations for increased stimulus to aid the recovery of pandemic-hit economies, while silver dashed past the $20 threshold to an over six-year high, after hitting its highest since July 2014 at $21.20.

Gold trading at $1,867.40 per ounce, while stands around $1,869.70 per ounce for gold futures. Previously closed at $1,871.10 and $1,865.10, respectively.

Silver trading at $22.70, platinum trading at $911.00 and palladium trading at $2,083.00.

ECONOMIC OUTLOOK

Asian stocks were likely to come under pressure on Thursday as diplomatic tensions between U.S. and China heightened investor jitters and overshadowed the boost to Wall Street from U.S. stimulus hopes.

In the latest tension of Sino-U.S., the United States ordered China to close its consulate in Houston, saying it was “to protect American intellectual property and Americans’ private information”, while China condemning the move, and considering shutting the U.S. consulate in Wuhan in retaliation.

U.S.’s sales of existing homes jumped by a record 20.7% in June.

South Korea plunged into recession as exports dropped by most since 1963.

Ratings agency Standard & Poor affirmed Canada’s sovereign debt ratings at ‘AAA/A-1+’ on Wednesday. The agency maintained the country’s outlook at “stable”.

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To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 15.374 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 630 thousand fatality globally.

TECHNICAL OUTLOOK

[USDJPY]

Important Levels to Watch for Today:

- Resistance line of 107.360 and 107.857.

- Support line of 106.745 and 106.247.

Commentary/ Reason:

- The yen was rangebound at 107.142 per dollar.

- Stochastic and RSI oscillators both steadies around normal range of 50, after pulled back from undervalued and overvalued ranges, respectively.

- The MACD is trading below its signal line and positive.