Posted at 24 June 2020 / Categories Market Roundups
Market Roundup
• IMF predicts deeper global recession due to coronavirus pandemic
• U.S. crude stocks rise, gasoline inventories fall –EIA
• U.S. has 2nd-largest rise in new virus cases since crisis began
• Belgium June NBB Business Climate-22.9, -28.0, -34.4 previous
• US April House Price Index 288.3, 287.9 previous
• US April House Price Index (MoM) 0.2%, 0.1% previous
• US April House Price Index (YoY) 5.5%, 5.9% previous
• US Cushing Crude Oil Inventories -0.991M,-2.608M previous
• US Crude Oil Inventories 1.442M forecast, 1.215M previous
Looking Ahead – Economic data (GMT)
•22:40 New Zealand May Imports 3.99B previous
• 22:40 New Zealand May Exports 5.26B previous
• 22:40 New Zealand May Trade Balance (MoM) 1,267M previous
• 22:40 New Zealand Trade Balance (YoY) -2,500M previous
• 22:50 Japan Foreign Bonds Buying 1,656.6B previous
• 22:50 Japan Foreign Investments in Japanese Stocks -440.4B previous
• 04:50 Japan All Industries Activity Index (MoM) -3.8% previous
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Currencies Summaries
EUR/USD: The euro dipped against dollar on Wednesday as investors turned cautious following a surge in the number of coronavirus cases globally. Many U.S. states reported record daily increases in COVID-19 infections amid easing of lockdowns, while a media report that European Union countries are prepared to bar entry to Americans raised worries of further restrictions. Immediate resistance can be seen at 1.1324 (June 24th high), an upside break can trigger rise towards 1.1395 (Higher BB).On the downside, immediate support is seen at 1.1250 (23.6% fib), a break below could take the pair towards 1.1150 (30DMA).
GBP/USD: Sterling declined against dollar on Wednesday as sterling was weighed down by uncertainty over Brexit negotiations even after global risk appetite got a boost from positive economic data as countries ease their lockdowns. For the past two days, the pound had risen against a weaker dollar, hitting a six-day high of $1.2541 at 0007 GMT on Wednesday, before reversing course as the greenback recovered. The pound fell back below the key $1.25 level versus the dollar to $1.2413 at 22:00 GMT, down 0.2% on the day. Immediate resistance can be seen at 1.2438 (30 DMA),an upside break can trigger rise towards 1.2513 (38.2% fib)On the downside, immediate support is seen at 1.2407 (Daily low), a break below could take the pair towards 1.2311 (50% fib).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Wednesday as signs of acceleration in coronavirus cases worried investors and Fitch lowered Canada's sovereign rating to below AAA for the first time since August 2004.Global shares fell as a rising number of coronavirus cases in the United States, China, Latin America and India dampened hopes of a swift recovery in the global economy. The Canadian dollar was trading 0.5% lower at 1.3641to the greenback .Immediate resistance can be seen at 1.3674 (21DMA), an upside break can trigger rise towards 1.3740 (61.8% fib).On the downside, immediate support is seen at 1.3625 (38.2% fib), a break below could take the pair towards 1.3550 (21 DMA).
USD/JPY: The dollar edged higher against the Japanese yen on Wednesday as rise in coronavirus cases in the United States weighed on optimism about a quick economic recovery, and as the U.S. weighed tariffs on European products. The coronavirus pandemic is causing wider and deeper damage to economic activity than first thought, the International Monetary Fund said on Wednesday, prompting the institution to slash its 2020 global output forecasts further. Concerns about an increase tariffs also weighed on risk sentiment, and boosted demand for the greenback. Strong resistance can be seen at 107.20 (14 DMA), an upside break can trigger rise towards 107.94 (38.2% fib ).On the downside, immediate support is seen at 106.86 (5 DMA ), a break below could take the pair towards 106.74 (50% fib).
Equities Recap
European stocks slumped to a one week-low on Wednesday as a surge in coronavirus cases and news that U.S. was weighing tariffs on European products dashed investors hopes of a speedy economic recovery.
UK's benchmark FTSE 100 closed down by 3.11 percent, Germany's Dax ended down by 3.43 percent, France’s CAC finished the day down by 2.92 percent.
Wall Street’s main indexes tumbled on Wednesday, accelerating pullbacks a day after the Nasdaq notched a record high, after New York, New Jersey and Connecticut announced that visitors from states with high coronavirus infection rates must self quarantine.
Dow Jones closed down by 2.74% percent, S&P 500 closed down by 2.59% percent, Nasdaq settled down by 2.19% percent.
Treasuries Recap
U.S. Treasury yields fell on Wednesday as investors bought safe-haven assets with an eye on rising COVID-19 patient cases in several U.S states.
The benchmark 10-year yield was down 2.5 basis points at 0.6839% in afternoon trading as investors moved into safer government bonds and away from equities.
Commodities Recap
Gold weakened after hitting an over 7-1/2-year high earlier on Wednesday, with investors selling the precious metal along with other asset classes as a rise in global coronavirus cases led a flight to cash.
Spot gold eased 0.1% to $1,764.99 per ounce as of 12:20 p.m. EDT (1620 GMT), trading below $1,779.06 scaled earlier in the session, which was its highest since early October 2012.U.S. gold futures eased 0.3% to $1,776 per ounce.
Oil prices tumbled over 5%, or more than $2 a barrel on Wednesday, after U.S. crude storage hit another record and coronavirus cases rebounded in countries like Germany and surged in heavily populated areas of the United States.
Brent crude settled at $40.31 a barrel, down $2.32, or 5.4%. On Tuesday, Brent hit its highest price since early March, just before the pandemic and Saudi-Russia price war roiled markets.U.S. West Texas Intermediate (WTI) crude settled at $38.01 a barrel, losing $2.36, or 5.8%.