Asian stocks finished higher for the second consecutive day today as U.S. trade negotiators will likely visit China next week for their first face-to-face talk with Chinese officials since the G20 meeting. The Nikkei225 ended 0.44 percent higher at 21,745; the Hang Seng finished 0.93 percent higher at 28,730. The Shanghai Composite ended 1.01 percent higher to 2,929, while in Singapore, the FTSE Straits Times index finished 0.23 percent higher to 3,380.
Australian equities as of writing are trading 0.79 percent higher to 6777. AU CBA/Markit Purchasing Managers’ Index (PMI) for July showed that the Manufacturing PMI lagged behind 52.0 prior to 51.4, and the Services counterpart also trailed the 52.6 earlier with 51.9 mark, resulting into a 51.8 Composite PMI versus 52.5 previous readouts. Skilled vacancies fell 6.7% year-on-year in June.
European equities started the day lower, DAX30 is down 0.31 percent to 12,497, CAC40 is 0.23 percent lower at 5,615 while the FTSE MIB in Milan is trading 0.26 percent lower at 21,555. The London Stock Exchange is 0.36% percent lower to 7,542 amid non-deal Brexit worries.
In commodities markets, crude oil trades 0.35 percent higher at $56.97 as traders turn cautious on recent tensions in the Middle East. Brent oil finished trades 0.25% higher at $63,99 per barrel even though major oil producers have agreed to cut output. Gold is adding three dollars today at 1,420 keeping the bullish momentum as the price holds above all the major daily moving averages. On the upside, strong resistance will be met at 1,452.90 high.
In cryptocurrencies, Bitcoin (BTCUSD) trades lower today breaking below the 10,000 mark, and trades at 9,615, hitting the daily low at 9,548 and the daily high at 10,134. Bitcoin tests the 50-day moving average, the previous two times it managed to rebound. Immediate support for BTC stands now at $9,205, Friday’s low while next support stands at 9,000. On the upside, strong resistance now stands at 13,138 recent high and then at 13,500 round figure. Ethereum (ETHUSD) gives up almost 13 dollars and trades at 204 with capitalization now to 21.8 billion. On the upside, the immediate resistance stands at 317 Friday’s high while the support stands at the 200 round figure, Litecoin (LTCUSD) also trades lower at 88.15. The crypto market cap now stands above $264.4 billion.
On the Lookout: IMF lowered its global growth forecast to 3.2% in 2019, before picking up to 3.5 percent in 2020 (0.1 percentage point lower than in the April projections for both years). The IMF said that “…risks to the forecast are mainly to the downside” partly on trade tensions.
AU CBA/Markit Purchasing Managers’ Index (PMI) for July showed that the Manufacturing PMI lagged behind 52.0 prior to 51.4 and the Services counterpart also trailing the 52.6 earlier with 51.9 mark, resulting into 51.8 Composite PMI versus 52.5 previous readouts. Skilled vacancies fell 6.7% year-on-year in June.
Japan Nikkei Manufacturing PMI came in at 49.6 below expectations of 49.7 in July.
Trading Perspective: In forex markets, USD continues 0.05 percent higher at 97.75, the Aussie dollar trades 0.37 percent lower at 0.6978, while Kiwi also trades at 0.6692.
GBPUSD is trading 0.04% lower at 1.2433 close to the daily low. Major support now stands at 1.2381, Thursday’s low which if broken might accelerate the slide further towards the 1.23 round figure. On the upside, immediate resistance now stands at 1.2662, the 50-day moving average while more offers will emerge at 1.2888, the 200-day moving average.
Sterling futures markets open interest decreased by 1,100 contracts while volume decreased by 23,600 futures contracts.
EURUSD gives up 0.08 percent to 1.1140 making a fresh monthly low, facing the strong support at 1.1106 the yearly low, which if the pair manages to close below, will open the way to 1.1050. On the upside, immediate resistance stands at 1.1200 round figure.
Euro futures markets open interest increased by 9,500 contracts while volume increased by 59,300 futures contracts.
USDJPY is trading 0.06 percent lower at 108.15 having hit the daily low at 108.11 and the daily high at 108.26. USDJPY pair will find support around 107.50 round figure and then at 107.00. On the upside, immediate resistance for the pair now stands at 108.98 the recent high and then at 110.04 the 100-day moving average.
USDCAD is trading 0.08 percent higher at 1.3140 and continues the rebound from the lows around 1.30 amid USD strength, and the retreat in crude oil prices, Canada’s main export item, seems to have added further weakness in the Canadian Dollar (CAD). The pair will find immediate support at 1.3017 the YTD low while extra support stands at 1.30 round figure. On the upside, immediate resistance now stands at the 1.32 zone before an attempt to 1.3450 recent high from 31st May.