Asian Stocks Rebound, Crude Oil Slumps as Iran-USA Tensions Ease

Nikolas Papas

Nikolas has been involved in the finance industry for over fifteen years spanning across Europe and USA with a depth of knowledge and experience within many aspects of the financial markets. Nikolas gained several years experience with some of the Europe’s leading Brokers, as equity analyst, and trader managing accounts for both Private and Corporate Investors. He enjoys both the fundamental and technical aspects of trading focusing on stock markets and all FX majors. Currently Nikolas provides analysis and comments to online financial publications. Educational background in Economics (BSc), and Finance (MSc).

U.S.–Iran Tensions

Asian Stocks Rebound, Crude Oil Slumps as Iran-USA Tensions Ease

January 10, 2020

Asian Stocks Rebound higher after markets calmed from President Trump’s comments that the U.S. will not take any military action against Iran. The Nikkei 225 ended 2.31% higher at 23,739, the Hang Seng index is 1.68% higher at 28,561. The Singapore FTSE Straits Times is 0.05% higher at 3,247 while the Shanghai Composite finished 0.91% higher at 3,094.  

European stocks mirrored the Wall Street indices and jumped higher. DAX is adding 1.22% at 13,482. CAC40 gives up 0.33 at 6,051 while the FTSE MIB in Milan is 0.80 per cent higher at 24,023. In London, the FTSE 100 is 0.52% higher at 7,614. 

asian stock rebound
XAUUSD Daily Chart

In commodities markets, the crude oil price is adding 0.20% at $59.73 as traders digest the recent escalation in the Gulf region. Brent oil is 0.03% higher at $65.46 per barrel. Gold price gives up 0.55% at 1,547 as investors dumped safe-haven assets. The gold outlook is clearly bullish despite the two days correction. The immediate resistance stands at 1,611 the recent high, while the support is at 1,447 the recent low.       

In cryptocurrencies markets, Bitcoin’s correction is intact for the second day in a row as BTCUSD gives up 2.17% at $7,870 hitting the daily low at $7,850 and the daily high at $8,048. Bitcoin’s move today cancels the recent bullish momentum as the crypto pair breached below the 100-day moving. Support for BTCUSD stands now at $7,000, while the next support level holds at 6,628 recent low.

On the other hand, resistance stands at 9,925 high and then at 10,000 round figure. Ethereum ETHUSD trades 1.72% lower at 138.07 with capitalization now at 15.16 billion, and on the upside, resistance for Ethereum stands at 200 recent high while the support stands at 117.09 the previous week low. Litecoin (LTCUSD) is trading 5.36% lower at 45.23. The crypto market capitalization is $209.01 billion.

In the Lookout: The China Producer Price Index (YoY) came in at -0.5% below forecasts of -0.4% in December. China Consumer Price Index (YoY) came in at 4.5% below expectations of 4.7%. 

The People’s Bank of China (PBOC) has set the Yuan reference rate at 6.9450 versus yesterday’s fix at 6.9690.

Trading Perspective: In forex, the US dollar index trades 0.16 per cent higher at 97.13, the AUDUSD is 0.18% lower at 0.6856 against the US dollar. NZDUSD trades 0.09% lower at 0.6634. USDCHF is 0.02% lower at 0.9698.

GBPUSD trades 0.43% lower at 1.3037 as we are getting closer to the Brexit deadline on January 31st, 2020. Immediate support for the pound against the US dollar now stands at 1.2578 low which if broken, might push the pair further down towards 1.20. On the upside, the first resistance will be met at 1.3511 recent high.

asian stocks rebound
GBPUSD Daily Chart

EURUSD trades 0.08% higher at 1.1114 as the pair’s short term momentum is neutral now. The first resistance for the EURUSD stands at 1.1224 recent high. On the other hand, support is at 1.1102 today’s low and then at 1.10.

USDJPY is trading 0.28% higher at 109.41, having hit the daily low at 109.00 and the daily high at 109.48. USDJPY will meet support at 105.43 the low from August 22nd. On the upside, initial resistance for the USDJPY now stands at 109.69 recent high.

USDCAD trades 0.03% higher at 1.3043, as the Canadian dollar pressured by weaker crude oil. The pair will meet first support at 1.2950 the recent low while the next support level stands at 1.29 round figure. On the flip side, resistance will be met at the 1.3066 the high from December 31st

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