Daily Market Updates 04.06.2020
Thursday 04.06.2020
Asian Session
Most of the Asian stocks are mixed today after Wall Street gains as US jobs and manufacturing sector is better than expected. Japan’s index gained 0.1%, while Shanghai index lost 0.2%. Hong Kong index has lost 0.2% amid US and China trade tensions and is currently traded at 24260. The South Korea’s KOSPI index went up by 0.2% and Australia’s index rose by 0.6%.
| Asian Stock | Closed |
| Nikkei | +0.1% |
| Hong Kong HSI | -0.2% |
| China Shanghai SSE | -0.2% |
| KOSPI – South Korea | +0.2% |
US Stocks
US stocks become rising as the protests within US showed signs of calming, as a results investor are optimistic about economic activity improvement with the retreat of pandemic infections, along with additional government stimulus plans. SP500 index closed yesterday around 3122 a gain of 1.4%, while Dow Jones index gained more than 500 points and rose by 2% and Nasdaq Composite index increased by 0.8%.
| US Stocks | Closed |
| DOW | +2% |
| S&P500 | +1.4% |
| NASDAQ | +0.8% |
Major Currencies & Dollar Index
The selling pressure on dollar remained unbated yesterday and allowed Euro to continue it’s bullish momentum for seventh day in a row, despite the good US news after the ADP national employment change report showed that the private sector employment declined by 2.76 million in May. Euro/Dollar reached the level of 1.126 and now is traded around 1.12. Euro is more likely to go even higher today as ECB is expected to expand its purchase program to 750 billion. The UK Services PMI was revised higher to 29.0 for May as against 27.8 estimated earlier, although did little to provide any meaningful boost to the British pound. Pound declined yesterday amid positive Us news, along with the announcement from the BoE Governor Andrew Bailey who told UK Banks to step up plans to leave EU without trade deal. The pair is currently traded at 1.252 and is more likely go to 1.245. Dollar/Yen finally managed to break slightly above 109 price level. Traders are ahead of today’s Jobless Claims data news which another key which will have direct impact on the pair. Despite the new Japanese economic stimulus package which is estimated to boost the Japan’s GDP by about 2%, did not offer support yet to the pair.
Gold Market
Gold prices reached again the price level of 1690 the previous support level, however bulls manage to sustain the price above that level but below 1700. Initial resistance could be found at 1710 at 61.8& of Fibonacci level. According to analysts of Citibank gold may touch 2000 per ounce in third quarter of 2021 and until the end of the year could reach the 1900 price level. Gold yesterday collapsed sharply as investors are mainly focused on central bank intervention and economic recovery as stock market demand increased. Prices posted the lowest finish since May 11.
Oil Market
Oil prices extended their upside movements on yesterday closing at their highest level since early March, however there is an uncertainty over whether OPEC meeting for oil cut production will take place this or next week. Energy Information administration has reported weekly declines of less than 2 million barrels for the black gold stockpiles and support oil prices to go even higher. WTI crude for July delivery rose by 1.3% at $37.3, while Brent August delivery rose by 0.6% at $39.8 per barrel. Saudi Arabia and Russia achieved on preliminary agreement to extend oil cuts to 7.7 million barrels per day starting in July.
European Stocks
European stocks could soon jump higher as the ECB continues to hold down the government bond yields, so investors to turn to stocks rather than bonds, as European governments extend their plans for fiscal boost. European stocks continued outperforming this week with the Stoxx600 index increasing by 5.3% yesterday versus a rise of 2.6% for the SP500.
On the data front 04-06-2020
| Time (GMT+3) | Event | Impact |
| 04:45 am | CNY Caixin Manufacturing PMI(May) | High |
| 14:45 pm | EUR ECB Interest Rate Decision | High |
| 14:45 pm | EUR ECB Deposit Rate Decision | High |
| 15:30 pm | USD Initial Jobless Claims (May 29) | High |
| 15:30 pm | EUR ECB Monetary Policy Statement and Press Conference | High |
