Daily Market Updates 25.06.2020

Thursday 25.06.2020

Asian Session

Stocks in Asia Pacific slipped today afternoon trade, after International Monetary Fund’s (IMF) forecast in its World Economic Outlook update and estimated that we will see a contraction of 4.9% in global GDP this year lower than the 3% as it was predicted the previous months. South Korea’s Kospi index plunged by 1.77%, while Japan’s index Nikkei225 fell by 0.99%. Hong Kong’s index closed today for holidays and Shanghai’s index rose by 0.30%.

Asian Stock Closed
Nikkei -0.99%
Hong Kong HSI
China Shanghai SSE +0.3%
KOSPI – South Korea -1.77%

 

US Stocks

For third consecutive day US stocks declining with Dow Jones index on futures falling by 2.72%, following earlier modest gains, while SP500 index on futures declining by 2.6% and Nasdaq Composite index falling by 2.2%. Stocks tumbled yesterday as investors have concerns about the increasing number of coronavirus cases and that government may reinstate lockdown measures. Since 10 of June we observed another sell off in the equities markets and is not impossible to continue go back again to those record dips, if a second wave comes up.

US Stocks Closed
DOW -2.72%
S&P500 -2.6%
NASDAQ -2.2%

 

Major Currencies & Dollar Index

All eyes today turn on the final US GDP release that most probably will confirm the 5% annualized contraction in the first quarter of 2020 and the durable goods orders are projected to rebound in May after plunging in April. Euro may rise today against dollar after the outcome of the today’s news and rebound from yesterday losses of around 60 pips as coronavirus increasing globally and dollar becomes a safe heaven instrument against its major counters. Pound/Dollar is currently traded slightly above 1.24 price level and lost more than 100 pips since yesterday due to dollar demand. Economists at Westpac said to look for sterling to lift from USD 1.27 at December 2020 to only USD 1.30 December 2021. The Cable pair fails to cheer the recent Brexit-positive signs amid the broad greenback strength backed by risk-off sentiment. The British Pound was further pressured by reports that the US is considering tariffs on $3.1 billion of exports from the United Kingdom, France, Spain and Germany. USD/JPY gains traction for the second straight session amid dollar strength. Dollar recovered more than 60 pips yesterday against yen and it is currently traded above 107 price level.

Gold Market

Gold on futures declined yesterday after touching a new high record contract early in the session, as investors booked profits amid selling of other asset classes as a global increase in coronavirus cases caused more liquidation for the safe heaven dollar against other majors currencies. Another reason of the fall of gold were margin call selling related to the recent plunge in global equities, along with rising demand on treasury bonds and a stronger dollar. Gold faces resistance level around $1765 with support at $ 1743 per ounce.

Oil Market

According to CME Group, open interest in Crude Oil futures market has decreased by almost 3k contracts yesterday and the downtrend in the open interest remains unchanged since June 12, however in the other hand volume went up remarkably by around 294.1k contracts. US Crude Oil inventories increased by 1.4 million barrels in the week ending June 19th, the Energy Information Administration (EIA) announced yesterday which it was far worse than what was expected as a result oil fell by almost $2 per barrel. WTI is now traded at $39 per barrel and next support now can be found near $34. Brent Crude Oil lost also $2 per barrel and now is traded at $37.28.

European Stocks

European stocks fell more than 70 points yesterday after US announced that is set to impose renewal tariffs on European goods and the number of the virus’s victims continues to surge. Europe indexes extended early losses with the Euro Stoxx50 down 1.8% and UK’s benchmark FTSE-100 down 2.3%.

On the data front 25-06-2020

Time (GMT+3) Event Impact
14:30 pm EUR ECB Monetary Policy Meeting Accounts High
15:30 pm USD Core Personal Consumption Expenditures (QoQ) (Q1) Medium
15:30 pm USD Initial Jobless Claims (Jun 19) High
15:30 pm USD Nondefense Capital Goods Orders ex Aircraft (May) High
15:30 pm USD Gross Domestic Product Annualized(Q1) High
15:30 pm EUR ECB’s Schnabel speech Medium
15:30 pm EUR ECB’s Mersch speech Medium
20:00 pm GBP BoE’s Haldane speech Medium