Stocks rebound in Asia and managed to end on positive grounds amid coronavirus outbreak concerns. Deaths in China rose to 25 with over 600 cases confirmed. Eight cities have been shut down, Wuhan, Huanggang, Ezhou, Chibi, Qianjiang, Zhejiang, Jingmen, and Xiantao. The coronavirus in China revived the SARS outbreak in 2002 which killed over 800 people.
The Nikkei 225 finished 0.13% at 23,827. The Hang Seng finished 0.15% higher at 27,949. The Singapore FTSE Straits Times is 0.17% higher at 3,240. The ASX 200 index in Australia closed flat at 7090.
European indices started lower. The DAX index is 0.54% lower at 13,442 ahead of the ECB rate decision. CAC40 is 0.29 lower at 5,992 while the FTSE MIB in Milan is 0.30% higher at 23,778. In London, the FTSE 100 is 0.50% lower at 7,534.
In commodities markets, the crude oil price rebound, adding 0.56% at $55.90 after 5% losses this week. Brent oil is 0.57% higher at $61.63 per barrel. Gold price trades 0.19% lower at 1,559. The gold outlook is positive as the price is gaining momentum above 1555. The resistance stands at 1,611 the recent high, while the support stands at 1,447 the recent low.
Cryptocurrencies markets are under selling pressure for one more day, Bitcoin gives up 0.67% at $8,322 hitting the daily low at $8,256 and the daily high at $8,421. Bitcoin momentum is negative now as the crypto pair breached below the 100-day moving average. Support for bitcoin stands now at $8,000 while the next support holds at 7,500.
On the upside, resistance will be met at 9,925 high and then at 10,000 round figure. Ethereum (ETHUSD) trades 2.23% lower at 158.88 with capitalization now at 17.44 billion, on the upside resistance for ETHUSD stands at 200 recent high while the support stands at 117.09 the previous week low, Litecoin (LTCUSD) is trading 6.77% lower at 52.79. The crypto market capitalization is $228.69 billion.
In the Lookout: In the economic data today, the Singapore Industrial Production (MoM) came in at 4.1%, above expectations of 3.7% in December. The yearly reading came in at -0.7%, topping expectations of -0.8%.
Japan National CPI ex Food, Energy came in at 0.9%, above expectations of 0.8% in December.
The Australia Commonwealth Bank Composite PMI dropped from previous 49.6 to 48.6 in January. The Manufacturing PMI came in at 49.1, above estimates of 49 while the Services PMI came in at 48.9, below the forecasts of 49.5.
In New Zealand, the Consumer Price Index (QoQ) came in at 0.5%, beating expectations of 0.4% in the fourth quarter of 2019.
Trading Perspective: In the forex market, the US dollar index trades 0.05 per cent higher at 97.73, the AUDUSD pair is 0.04% higher at 0.6849. NZDUSD trades 0.10% higher at 0.6622. USDCHF is 0.09% higher at 0.9699.
GBPUSD trades 0.01% lower at 1.3122 helped by more moderate expectations of a rate cut by the Bank of England. The first support level for the British pound against the US dollar now stands at 1.2578 low which if broken, might push the GBPUSD further down towards 1.20. On the upside, first resistance will be met at 1.3511 recent high.
EURUSD trades 0.01% lower at 1.1049 as the pair’s short term momentum has turned now negative, as the pair breached below the 100-day moving average. First resistance for the EURUSD stands at 1.1224 recent high. On the other hand, support is at 1.1042 today’s low and then at 1.10.
In euro futures, the open interest increased by 9,800 contracts and volume also increased by 56,000 contracts.
USDJPY is trading 0.08% higher at 109.58, having hit the daily low at 109.43 and the daily high at 109.59. USDJPY will meet support at 105.43 the August low. On the upside, initial resistance for the USDJPY now stands at 110.28 recent high.
USDCAD trades 0.02% lower at 1.3124, as the Bank of Canada kept interest rates unchanged. The USDCAD 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.