Menu

Search

  |   Market Roundups

Menu

  |   Market Roundups

Search

Asia Roundup: Aussie gains on coronavirus slowdown, euro halts 6-day losing streak following ECB's Stournaras comments, Asian shares surge - Tuesday, April 7th, 2020

Market Roundup

  • Oil gains as hopes rise for production cut
     
  • Gold at 4-week high as virus fears drive safe-haven demand

Economic Data Ahead

  • (0400 ET/0800 GMT) Italy Retail Sales s.a. (MoM) (Feb)
     
  • (0400 ET/0800 GMT) Italy Retail Sales n.s.a (YoY) (Feb)
     

Key Events Ahead

  • No Significant Events Scheduled

FX Beat

DXY: The dollar index eased from recent peaks as the United States is bracing for its toughest week yet as the death toll climbs above 10,000. The greenback against a basket of currencies traded 0.5 percent down at 100.32, having touched a high of 100.93 on Monday, its highest since Mar. 26.

EUR/USD: The euro rose, halting a 6-day losing streak after the head of Greece’s central bank stated that countries sharing the euro must act jointly to deal with coronavirus, calling for common debt issuance using all the resources of eurozone institutions. The European currency traded 0.4 percent up at 1.0829, having touched a low of 1.0768 on Monday, its lowest since March 25. Investors’ attention will remain on a series of data from the Eurozone economies, ahead of the U.S. JOLTS Job Opening, and IBD/TIPP Economic Optimism Index. Immediate resistance is located at 1.0848, a break above targets 1.0888 (5-DMA). On the downside, support is seen at 1.0760, a break below could drag it below 1.0720.

USD/JPY: The dollar eased after rising to an over 1-week peak in the prior session, weighed by worries that lifting lockdowns too soon could drive a fresh wave of infections and caution about the economic fallout. The yen also gained after Prime Minister Shinzo Abe promised a massive $991 billion economic stimulus package - equal to 20 percent of GDP. The major was trading 0.3 percent down at 108.90, having hit a high of 109.38 on Monday, its highest since Mar. 27. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. JOLTS Job Opening, and IBD/TIPP Economic Optimism Index. Immediate resistance is located at 109.59, a break above targets 109.71. On the downside, support is seen at 108.01 (5-DMA), a break below could take it near at 107.69.    

GBP/USD: Sterling rebounded from a 1-1/2 week trough as the greenback weakened from recent highs. Sterling initially declined after it was reported that British Prime Minister Boris Johnson has been moved into intensive care after his coronavirus symptoms worsened. Britain has no formal succession plan should the prime minister become incapacitated, but Johnson asked Foreign Secretary Dominic Raab to deputise for him. The major traded 0.5 percent higher at 1.2294, having hit a low of 1.2163 earlier, it’s lowest since March 27. Investors’ attention will remain on the geopolitical developments ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.2370, a break above could take it near 1.2415. On the downside, support is seen at 1.2140, a break below targets 1.2093. Against the euro, the pound was trading flat at 88.20 pence, having hit a high of 87.39 on Friday, it’s highest since Mar. 11.

AUD/USD: The Australian dollar rose, extending previous session gains, amid signs of a slowdown in coronavirus-related deaths. The Aussie trades 1.1 percent up at 0.6153, having hit a high of 0.6213 last week, it’s highest since Mar. 16. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate resistance is located at 0.6184, a break above could take it near 0.6213. On the downside, support is seen at 0.5990, a break below targets 0.5956.

Equities Recap

Asian shares surged, buoyed by tentative signs the coronavirus crisis may be levelling off in New York and receding in Europe.

MSCI's broadest index of Asia-Pacific shares outside Japan rallied 1.0 percent.

Tokyo's Nikkei rose 2.1 percent to 18,950.18 points, Australia's S&P/ASX 200 index fell 0.6 percent to 5,252.30 points and South Korea's KOSPI gained 1.8 percent to 1,823.60 points.

Shanghai composite index surged 1.9 percent to 2,818.58 points, while CSI 300 index traded 2.2 percent up at 3,795.09 points

Hong Kong’s Hang Seng traded 1.7 percent higher at 24,157.19 points. Taiwan shares added 1.8 percent to 9,996.39 points.

Commodities Recap

Crude oil prices rose amid hopes that the world’s biggest producers of crude will agree to curtail production as the coronavirus pandemic ravages the global economy. International benchmark Brent crude was trading 2.3 percent higher at $34.06 per barrel by 0545 GMT, having hit a high of $36.11 on Thursday, its highest since March 12. U.S. West Texas Intermediate was trading 2.8 percent up at $27.04 a barrel, after rising as high as $29.11 on Friday, its highest since Mar. 17.

Gold prices surged to a 4-week high as demand for the safe-haven metal rose due to worries over the worsening economic impact from the coronavirus pandemic. Spot gold trading 0.2 percent up at $1,665.31 per ounce by 0553 GMT, having touched a high of $1675.60 earlier, its highest since Mar. 10. U.S. gold futures rose 1.7 percent to $1,723.

Treasuries Recap

On Monday, the yield on the benchmark U.S. 10-year note was last up 7.8 basis points at 0.6666 percent, while the two-year U.S. Treasury yield was at 0.2622 percent, up 4.9 basis points.

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.