Phase One Deal Signing Ceremony Boosts Stocks
Asian indices started the new year with gains as investors await the signing ceremony on January 15th of the phase one deal between China and the USA.
Asian indices started the new year with gains as investors await the signing ceremony on January 15th of the phase one deal between China and the USA. The Hang Seng index ended 1.25 higher at 28,543. The Singapore FTSE Straits Times is 0.90% higher at 3,252, while the Shanghai Composite is 1.15% higher at 3,085. The Nikkei 225 will be closed for the rest of the week.
European equities also started stronger. CAC40 is 1.29 per cent higher at 6,054 while the FTSE MIB in Milan is 1.21 per cent higher at 23,791. In London, the FTSE 100 is 0.95% higher at 7,614, while the DAX is 0.78% higher at 13,351.
In commodities, the crude oil trades 0.33% higher at $61.26 close two-month highs after OPEC+ agreed to reduce oil output by 500,000 barrels per day until June. Brent oil is trading 0.55% higher at $66.36 per barrel on improved global growth prospects. Gold prices trade 0.19% higher at 1,520. The outlook is bullish now as the gold prices trading above the 50 and 100-day moving averages. The immediate resistance stands at 1,555.13 YTD high, while the support is at 1,447 the recent low.
In crypto markets, bitcoin trades 0.54% lower at $7,140 hitting the daily low at $7,058 and the daily high at $7,176. Bitcoin momentum is negative as the crypto pair trades below the 100 and 50-day moving averages. First support for BTCUSD stands now at $6,400 recent low, while the next support level holds at 6,000 round figure.
On the other hand, resistance stands at 9,925 high and then at 10,000 round figure. Ethereum ETHUSD trades 0.47% lower at 129.66 with capitalization now at 14.19 billion, 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 0.43% lower at 41.31. The crypto market cap capitalization is $190.88 billion.
In the Lookout: China Manufacturing PMI came in at 51.5 below the expectations of 51.7 in December.
The central bank of China (PBOC) set the Chinese Yuan reference rate (USDCNH) at 6.9614 versus yesterday’s settlement at 6.9762.
Trading Perspective: In forex, the US dollar index trades 0.23 per cent higher at 96.67, the Aussie is 0.29% lower at 0.6995 against the US dollar. NZDUSD trades 0.40% lower at 0.6706. USDCHF is 0.29% higher at 0.9700.
GBPUSD trades 0.28% lower at 1.3210 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.
EURUSD trades 0.25% lower at 1.1194 as the pair’s momentum is positive now for the short term. The first resistance for the EURUSD stands at 1.1224 recent high. On the other hand, support is at 1.1192 today’s low and then at 1.10.
USDJPY is trading 0.19% higher at 108.83, having hit the daily low at 108.59 and the daily high at 108.86. 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 0.14% higher at 1.2993, 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.
Reporting by Nikolas Papas. Filed 2 January 2020, 15:24 GMT.
