Market News | Forex News | Research Report 23rd September 2020

September 23, 2020

Shares in Asia Pacific struggled for gains on Wednesday as persistent worries about the global economic recovery had investors preferring safety. Stocks in mainland China were trading in the green by late morning. The Shanghai composite was up 0.17% to 3,279. Stocks in Australia rose with the S&P/ASX 200 edging up 1.01% to 5891.5. Overall, the Singapore MSCI rose 0.12% to 5,891.5.

Over in Hong Kong, the Hang Seng Index fell by 0.12% to 23,625. In Japan, the Nikkei 225 climbed 0.91% to 23,088, while the Topix index rose 0.57% to 1631. South Korea’s Kospi also rose 0.03% to 2,334.24.

Overnight on Wall Street, The Dow ended Wednesday up 0.52%, to 27,288 while the S&P 500 climbed 1.05% to 3,315 and the Nasdaq Composite Index rose 1.71% to 10,963.

The European market was Seen moving Higher Ahead of Key PMI Sentiment Data. European stock markets opened lower today. In the Cash Markets, the Pan-European STOXX 50 index inched up 0.52% to 3,192, Germany’s DAX edged up 0.61% at 12,737.8, France’s CAC 40 inched up 1.44% at 4,832.5. Italy’s FTSE MIB was higher by 1.02% at 19,042. London’s FTSE 100 also rose 1.25% at 5,807.5.

In the Corporate news today, Adidas shares climbed 6.3% and fellow German sportswear brand Puma added 5%, buoyed by a strong earnings report from U.S. rival Nike. British Airways parent IAG climbed 6.7% as its share price attempts to recover from a recent rout.

The worst performers of the session were Mitsubishi Motors Corp. which fell 5.28% or 13.0 points to trade at 233.0 at the close. Nippon Sheet Glass Co., Ltd. declined 4.92% or 21.0 points to end at 406.0 and Nippon Light Metal Holdings Co. was down 4.86% or 9.0 points to 176.0.

On the data front, Germany Manufacturing Purchasing Managers Index (PMI) will release by 03:55, Previous was 51.0 and forecast was 53.0. U.K. Composite Purchasing Managers’ Index (PMI) by 4:30, Previous was 57.0 and forecast was 60.3. U.K. Manufacturing Purchasing Managers Index (PMI) around 04:30, Previous 53.3 and forecast 55.3. Bank of Japan Monetary Policy Statement release at 07:50.

Federal Reserve Chair Jerome Powell is to testify on the economic outlook and recent monetary policy actions at 10:00. U.S. Crude Oil Inventories measures the weekly change in the number of barrels of commercial crude oil held by US firms at 10:30, Previous was -4.389M and forecast was -2.325M.

On the Economic Front, Brazil’s government is on course to post a primary budget deficit of 861 billion raise ($157 billion) this year, the Economy Ministry said in its bimonthly revenue and expenditure report on Tuesday. The growth and inflation outlook in the euro zone has not deteriorated since the European Central Bank decided earlier this month to keep policy unchanged

In the Forex market, the U.S. Dollar Index edged down 0.12% to 92.882. The USD/JPY pair inched up 0.09% to 104.97. The AUD/USD inched down 0.68% to 0.7124 and the NZD/USD pair edged down 0.55% to 0.6596. The USD/CNY pair inched up 0.20% to 6.7914. The GBP/USD pair inched down 0.23% to 1.2699, at the time of writing.

In the Commodity Markets, Gold was down as investors losing interest in the safe-haven. Gold futures inched down 1.54% to $1,878.70. The spot price of gold, which reflects trades in bullion, also declined 1.29%, to $1,875.50. Elsewhere, silver was down 4.47% to $24.627 per ounce, platinum dropped 0.98% to $849.40, and palladium edged down 1.70% to $2,191.60.

In news related to Crude Oil, The American Petroleum Institute, reported late Tuesday that crude oil inventories rose by 691,000 barrels in the week to Sept. 18, compared with forecasts for a drop of 2.3 million barrels. Official data is due out later Wednesday.U.S. crude futures also traded below 0.30% to $39.68 per barrel. International benchmark Brent crude futures declined 0.19% and traded at $41.75 per barrel. In the Cryptocurrency Markets, BTC/USD inched up 0.38% and was trading at 10,415.4. Ethereum edged down 0.65% to $334.34. Litecoin advanced 2.72% to 44.218. Dash edged down 2.24% to $67.25, at the time of writing.

TECHNICAL SUMMARY

EURUSD