Tuesday, January 21, 2020

Oil prices jump to new weekly high; the yen remains cautious ahead of BoJ’s policy meeting

Tags
  • China
  • Dollar
  • Gold
  • Stocks
  • Oil
  • US earnings' season

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Market Recap: Oil prices jump to new weekly high; the yen remains cautious ahead of BoJ’s policy meeting

Global markets ended Monday's trading session mixed while Wall Street remained closed for a holiday. Equities were mostly down in Europe while Asian stocks were mixed after the PBoC unexpectedly left both its 5-year and 1-year LPR unchanged at 4.80% and 4.15% respectively. The Hang Seng Index retreated after Moody downgraded the city as a long-term issuer by one notch.

Indexes Change (%) Net Change Closing Price
FTSE100 -0.30% -23.12 7,651.44
Euro Stoxx -0.24% -9.23 3,799.03
Nikkei 0.18% 42.25 24,083.51
KOSPI 0.54% 12.07 2,262.64
ASX200 0.22% 15.39 7,079.52
Hang Seng -0.90% -260.51 28,795.91
Straits Times -0.03% -0.94 3,280.09
*Source: Bloomberg

The dollar was mostly mixed against other major currencies. The Dollar Index was flat while the euro reversed losses after French President Emmanuel Macron said that his discussion with US President Donald Trump over their digital tax dispute was positive, signaling that trade tensions between the US and EU may be easing.

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Gold extended gains by 0.23% to 1560.77 while the yen fell slightly against the greenback as investors stay cautious ahead of the BoJ's monetary policy meeting statement and outlook report that will be released later today.

Safe Haven Assets Change (%) Net Change Closing Price
Gold 0.23% 3.53 1,560.77
Silver 0.20% 0.04 18.00
JPY -0.04% -0.04 110.18
*Source: Bloomberg

Oil prices continued to rise on Monday after oil production in Libya was disrupted by forces loyal to Libyan National Army Chief Field Marshall Khalifa Haftar on Saturday. Brent crude oil futures rose 0.54% to 65.20, the highest in a roughly a week.

Oil Futures Change (%) Net Change Closing Price
Brent Crude 0.54% 0.35 65.20
*Source: Bloomberg

Asian equities started the day mixed on Tuesday and look poised for losses. The Nikkei and KOSPI started Tuesday's trading session 0.04% and 0.13% lower. US equity futures edged lower on Tuesday morning as well.

Asia Change (%) Net Change Last Price As of (GMT +8)
Nikkei Index -0.11% -27.00 24,056.51 8:28:10 AM
KOSPI Index 0.05% 1.12 2,263.76 8:48:10 AM
ASX200 Index -0.24% -17.32 7,062.20 8:48:05 AM
Hang Seng Futures -0.05% -14.00 28,681.00 2:59:59 AM
*Source: Bloomberg
US Futures Change (%) Net Change Last Price As of (GMT +8)
Dow Futures 0.02% 6.00 29,285.00 7:46:07 AM
S&P500 Futures -0.04% -1.25 3,323.75 7:46:07 AM
Nasdaq Futures -0.01% -1.25 9,173.25 7:46:12 AM
*Source: Bloomberg

Earnings season continues today with UBS' earnings call at 4pm (GMT +8) and Netflix 's quarterly earnings report at 5am (GMT +8) tomorrow.

Economic releases for the day ahead (all timings in GMT +8):

  • BoJ Statement on Monetary Policy (approx. 10am)
  • UK Nov Unemployment Rate (ILO) (5.30pm)
  • Eurozone/Germany Jan Economic Sentiment (6pm)