EQUITIES
Asian share markets opened lower, as Japan's Nikkei 225 retreated -0.87%. China's Shanghai Composite down -0.10%, Singapore’s retreated -0.16% and South Korea’s KOSPI losses -0.35%. Meanwhile, shares in Australia traded higher, as the S&P/ASX 200 increased 0.44%, while Hong Kong's Hang Seng unchanged in early trading.
OIL
Oil prices retreated on Wednesday, weighed down by an increase in U.S. crude inventories and worries about a potential second wave of the coronavirus pandemic. Currently, Brent is trading at $40.09, while WTI is trading at $37.23 as of writing time.
Brent crude futures ended on Tuesday at $40.96 per barrel, while WTI crude futures at $38.38 per barrel.
CURRENCIES
The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 97 after touching levels around 96.5 earlier.
The dollar held firm against many of its rivals on Wednesday morning after U.S. retail sales jumped far more than expected in May, while risk-sensitive currencies were hobbled by concerns about the coronavirus and diplomatic tensions in Asia.
The Japanese yen traded at 107.27 per dollar after seeing levels around 107 earlier in the trading week. The Australian dollar changed hands at $0.6861 after slipping from levels above $0.693 yesterday.
GOLD
Gold currently trading at $1,722.90 per ounce, while stands around $1,733.40 per ounce for gold futures as of writing time. Previously closed at $1,726.10 and $1,736.50, respectively.
Silver trading at $17.36, platinum trading at $807.00 and palladium trading at $1,850.00.
ECONOMIC OUTLOOK
Asian stocks were set to climb on Wednesday after another late Wall Street surge in response to upbeat trial results for a COVID-19 treatment and data showing U.S. consumers spent big in May.
U.S. retail sales jumped by a record 17.7% in May, recovering more than half the losses of the previous two months, though industrial output still lagged.
OPEC-led monitoring panel will meet on Thursday to further discuss ways to strengthen and review compliance with OPEC’s commitment to curb oil production and support prices.
Trump administration is preparing an up to $1 trillion infrastructure package focused on transportation projects as part of its push to spur the world’s largest economy back to life.
U.S. bank profits fell by 69.6% to $18.5 billion in the first quarter of 2020 from the year prior.
To date, number of confirmed worldwide cases for COVID-19 pandemic has now reached more than 8.258 million today affecting 213 countries and territories around the world and 2 international conveyances, recording more than 446 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 value is around 30, approaching an oversold range.
- The MACD is trading below its signal line and negative, the configuration is negative.
