Tuesday, January 7, 2020

Global stocks look set for recovery; gold prices reach seven-year high

Tags
  • Dollar
  • Gold
  • Stocks
  • Oil
  • ISM PMI

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Market Recap: Global stocks look set for recovery; gold reach prices reach seven-year high

Stocks in the US recovered on Tuesday with big tech companies leading gains. Google, Amazon and Netflix led gains in tech, gaining 2.47%, 1.49% and 3.05% respectively.

Indexes Change (%) Net Change Closing Price
Dow Jones 0.24% 68.50 28,703.38
S&P500 0.35% 11.43 3,246.28
Nasdaq 0.56% 50.69 9,071.47
*Source: Bloomberg

The dollar fell against most of the major currencies except the Aussie and the yen, stabilising after comments from US Defence Secretary Mark Esper suggested that the US military is unlikely to strike Iranian cultural sites as earlier threatened by US President Donald Trump.

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Gold reached its highest since 2013, surging to as high as 1588.13 on Monday. But the yen fell against the dollar and US Treasuries fell, with benchmark 10-year yields rising 2 bps to 1.81%.

Safe Haven Assets Change (%) Net Change Closing Price
Gold 0.87% 13.54 1,565.74
Silver 0.51% 0.09 18.02
JPY -0.26% -0.28 108.37
*Source: Bloomberg
US Treasury yields Change (bps) Yield (%)
2-Year 2 1.54%
10-Year 2 1.81%
30-Year 4 2.29%
*Source: Bloomberg

Oil futures stabilised on Monday, after the US strike on Friday sent prices for oil surging. Brent reached as high as US$70.74 per barrel on Monday as worries that oil production in the Middle East would be affected by the attack. But oil futures may fall further as Iran is unlikely to have incentive to push oil prices higher as it would affect its own exports as well.

Oil Futures Change (%) Net Change Closing Price
Brent Crude 0.45% 0.31 68.91
WTI Crude 0.35% 0.22 63.27
*Source: Bloomberg

Stocks in Asia look poised to track US gains on Tuesday morning, with the Nikkei and KOSPI starting Tuesday's trading session 0.50% and 0.54% higher.

Asia Change (%) Net Change Last Price As of (GMT +8)
Nikkei Index 0.51% 119.23 23,324.09 8:12:20 AM
KOSPI Index 0.98% 21.14 2,176.21 8:32:20 AM
ASX200 Index 0.96% 64.49 6,800.20 8:32:05 AM
Hang Seng Futures 0.46% 129.00 28,312.00 2:59:56 AM
*Source: Bloomberg

Macro events for the day (all timings in GMT +8):

  • Eurozone Dec Inflation (6pm)
  • US Dec ISM Non-Manufacturing PMI (11pm)
  • US Nov Factory Orders (11pm)
  • US Nov Durable Goods Orders (Final Revision) (11pm)