Monday 05.10.2020
Asian Session
Asian equity market in China are closed today due to holiday. Investors likely continued to monitor developments surrounding Trump’s health. Hong Kong’s Hang Seng index rose 1.46% by the afternoon following its return to trade from holidays last week, with shares of HSBC soaring around 5%. In Japan, the Nikkei 225 rose 1.23% in afternoon and South Korea’s Kospi added 1.17%.
| Asian Stock | Closed |
| Nikkei | -0.67% |
| Hong Kong HSI | – |
| China Shanghai SSE | – |
| KOSPI – South Korea | – |
US Stocks
As investors still eyeing on Trump’s health and despite the uncertainty prevails, equities market increasing as Dow Jones jumped by 200 points in late Sunday. The S&P 500 futures and the Nasdaq 100 futures both rose about 0.7%. The negative jobs report for September, along with Trump’s illness, triggers more need or further coronavirus stimulus. SP500 closed lower on Friday by 0.96%, while Dow Jones fell by 0.48% and Nasdaq lost 2.22%.
| U.S Stocks | Closed |
| DOW | -0.48% |
| S&P500 | -0.96% |
| NASDAQ | -2.22% |
Major Currencies
Euro/Dollar intraday bias will likely remain neutral at the beginning of the week. A break of the resistance at 1.1769 will give an indication that the correction has been completed, and the intraday bias will return to the upside to retest 1.2010, otherwise the support could extend further more to the 1.15 price level. The Pound/Dollar pair surged above 1.2900 on headlines that the UK and EU will insist with Brexit negotiations, adding to background upbeat mood that a deal can be reached. Nonetheless, Terence Wu from OCBC Bank expects the cable to be capped by the 1.30 mark. Immense Monday’s open at 105.61 and Friday’s end at 105.38 evidence the lack of overall direction.
Gold Market
Spot gold was nearly flat at $1,896.21 per ounce by early trading session, while US gold on futures market went down by 0.3% at $1902 per ounce. Investors are mainly expecting for Trump’s health, along with a further stimulus package that will give huge impetus to precious metal. Additionally, there is a reluctance to sell gold ahead of US elections as a lot of uncertainty exists. The sentiment may shift to bears if no new stimulus aid be provided soon.
Oil Market
Crude oil prices fell at the end of last week after Trump announced that he was positive on coronavirus, however oil rebounds today as investors still eyeing for developments on US President Trump’s health. In the afternoon of Asian trading hours, international benchmark Brent crude futures were up 2.19% to $40.13 per barrel. U.S. crude futures also advanced 2.59% to $38.01 per barrel. Oil prices advanced by 2% higher at the beginning of this week.
European Stocks
European equities are expected to open higher today, following positive reports came out noting that Trump’s health still improving. The Pan-European index Stoxx600 closed by 0.25% higher on Friday.
On the data front 05-10-2020
| Time (GMT+3) | Event | Impact |
| 12:00 pm | EUR Retail Sales (YoY)(Aug) | High |
| 17:00 pm | USD ISM Services PMI(Sep) | High |
| 19:00 pm | CNY National Day | All Day |
