EQUITIES
Asian share markets plunged early morning, as Japan's Nikkei 225 retreated -1.89%. Hong Kong's Hang Seng down -2.27%, China's Shanghai Composite slipped -0.78% and Singapore’s retreated -3.44%. Meanwhile, shares in Australia also traded lower, as the S&P/ASX 200 decreased -2.66%, while South Korea’s KOSPI plummeted -4.17% in early trading.
The losses following overnight across Wall Street and Europe, which saw stocks suffering their biggest one-day plunge since March as fear of a second wave resurgence of the coronavirus pandemic crushed market.
OIL
Currently, oil prices slipped in the morning of Asian trading hours. Brent is trading at $37.21, while WTI is trading at $34.89 as of writing time.
WTI tumbled about 8% a barrel on Thursday at $36.34, while Brent crude futures ended the session at $38.55 per barrel.
CURRENCIES
The U.S. dollar index, which tracks the greenback against a basket of its peers, now at 96.84 after rising from levels around 96 earlier.
Against USD, JPY traded at 106.81 after strengthening from levels above 107 seen yesterday. The AUD was at $0.6816 after plunging from levels above $0.696 observed in the previous trading day.
GOLD
Gold currently trading at $1,727.40 per ounce, while stands around $1,733.70 per ounce for gold futures as of writing time. Previously closed at $1,727.10 and $1,739.80, respectively.
Silver trading at $17.62, platinum trading at $792.00 and palladium trading at $1,846.00.
ECONOMIC OUTLOOK
Asian equities are set to fall sharply on Friday after Wall Street stocks and oil tumbled over growing concerns that a resurgence of coronavirus infections could stunt the pace of reopening economies.
U.S. unemployment was set to reach 9.3% at the end of 2020 and it would take years to fall back, while interest rates were expected to stay near zero at least through next year.
Oil prices tumbled about 8% a barrel on Thursday, fuelled by renewed concerns about demand destruction, while crude inventories hit a record in the United States. U.S. crude inventories rose unexpectedly by 5.7 million barrels last week to a record 538.1 million barrels, largely built on Gulf Coast imports from Saudi Arabia,
U.S. gasoline stockpiles also grew more than expected to 258.7 million barrels. Distillate inventories, which include diesel and heating oil, rose by 1.6 million barrels, although the increase was smaller than in previous weeks.
If demand does not recover, U.S. refiners and shippers will find themselves with further excess supply.
To date, number of confirmed worldwide cases for COVID-19 pandemic has now reached more than 7.583 million today affecting 213 countries and territories around the world and 2 international conveyances, recording more than 423 thousand fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 107.982 and 108.610.
- Support line of 106.555 and 105.995.
Commentary/ Reason:
- Stochastic oscillator is closing on value of 70 into overvalued range.
- The MACD is trading above its signal line.
