MARKET HEADLINES:
Major Catalyst: U.S. Hopes for More Stimulus Prospects.
Commodity: Gold Down, Investors Await Biden’s “Trillion” in Stimulus Plans.
Oil: Oil Down, Rising Cases Stoke Fuel Demand Worries.
Forex: Dollar Up, Investors eyes “Trillions” in Stimulus Plans.
Global Market: Trump Bolsters Ban on U.S. Investments in China.
Industry Catalyst: Signal sees "unprecedented" growth after WhatsApp controversy
CATALYST FOR COMMODITY
Gold was down on Thursday morning in Asia, with investors awaiting details on U.S. President-elect Joe Biden’s plans for further stimulus measures. Gold was down 0.85% at $1,839.20. U.S. Treasury yields and the dollar both saw rebounds on Thursday. Benchmark ten-year Treasury yields rose to hover near ten-month highs, boosting the dollar against rival currencies. Biden has promised to deliver measures that could cost “trillions” of dollars and will unveil them later in the day. The yellow metal will be struggling around these price levels as the stimulus will have both positive and negative impacts. Investors will also look for further clues on the U.S. monetary policy outlook when Federal Reserve Chairman Jerome Powell speaks at a virtual event later in the day.
CATALYST FOR OIL
Oil was down Thursday morning in Asia, with investors weighing the ever-rising number of COVID-19 cases and the impact for fuel demand against a fifth consecutive week of declines in U.S. crude oil supply. Brent oil edged down 0.16% to $55.97 and WTI edge down 0.15% to $52.83. Both Brent and WTI remained above the $50 mark. Oil market’s sizzling rally likely took a hiatus as the stronger dollar and the omnipresent gasoline supply overhang offset the evaporating U.S. crude inventories. U.S. crude oil supply data from the U.S. Energy Information Administration (EIA) released on Wednesday showed a draw of 3.247 million barrels for the week to Jan. 8. The draw was bigger than the 2.266-million-barrel draw in forecasts.
CATALYST FOR CURRENCY
The dollar was up on Thursday morning in Asia, continuing a rebound from near three -year lows against major peers as investors await U.S. President -elect Joe Biden’s plans for further stimulus measures. The U.S. Dollar Index that tracks the greenback against a basket of other currencies inched up 0.04% to 90.373. The index was little changed on Thursday after adding 0.3% during the previous session. It fell to as low as 89.206 for the first time since March 2018 on Jan. 6. The USD/JPY pair edged up 0.17% to 104.03. The dollar remained little changed against the yen, after a previous 0.1% rise. The AUD/USD pair edged up 0.19% to 0.7747 and the NZD/USD pair was up 0.24% to 0.7195.The USD/CNY pair inched up 0.05% to 6.4712. Chinese trade data released earlier in the day.
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