Friday 12.06.2020
Asian Session
Asian stock markets also declined along with US equities as Wall Street suffered its worst since March. Japan’s index fell by 1.5%, while Hong Kong’s index dropped by 1.2%. Shanghai Composite index lost 0.7% and South Korea’s KOSPI index fell by 2.8%. Chinese oil stocks also fell except the technological sector, as the price of crude oil continue falling.
| Asian Stock | Closed |
| Nikkei | -1.5% |
| Hong Kong HSI | -1.2% |
| China Shanghai SSE | -0.7% |
| KOSPI – South Korea | -2.85 |
US Stocks
The US stocks market plunged by more than 7% in three days in a row, however this would not be unexpected, as market sentiment reached extreme bullishness and now starts to sell off. Nothing significant news caused the market to drop, but while health experts are expressing their concerns for a possible second wave of infection that creates a panic to the market. Dow Jones index has lost 6.9%, while SP500 fell by 5.9% and Nasdaq Composite index declined by 5.3%.
| US Stocks | Closed |
| DOW | -6.9% |
| S&P500 | -5.9% |
| NASDAQ | -5.3% |
Major Currencies & Dollar Index
Higher unemployment rate than was expected aid Euro to appreciate against dollar yesterday, however closed the day from the highs of 1.14 to falls of 1.13. The number of the new unemployed people reached another 1.5 million. The pair is currently traded slightly above 1.13 with the most recent resistance level be at 1.14. Pound/Dollar lost almost 150 pips in a single day as after David Frost, the chief UK negotiator, reiterated that the country will not seek a transition period extension. This means that chances of a no-deal Brexit are high as time runs out. The UK economy plunged by over 20.4% in April worse than expected, according to the latest monthly GDP estimates, and this follows an initial 5.8% decline back in March. The pair is currently traded at 1.26. Dollar is trying to recover against yen after four consecutives days lows and the pair is currently traded at 107.1. FX Strategists at UOB Group noted USD/JPY faces a key support at 106.70 in the next weeks. All eyes now turn to this Friday, where Japan will publish the BSI Large Manufacturing Conditions Index for the second quarter.
Gold Market
Gold futures jumped yesterday to 1746 per ounce and finally closed the day at 1736. Gold price shows some improvement amid worried for a second wave of infection and a sobering economic outlook from the Federal Reserve. With rates near zero and an unprecedented monetary stimulus gold prices seems to be strongly supported. August gold futures, rose by $19.10, or 1.1% per ounce to settle at $1,739.80.
Oil Market
After touching $4.057 per barrel crude started falling for two consecutives days reaching again $35 per barrel. The benchmark in US crude oil for July delivery, continued to fall, hitting $35.45 per barrel in electronic trading on the NYMEX. Brent crude oil for August delivery the global benchmark, fell to $37.78 per barrel. Oil prices faced its biggest lost yesterday in over six weeks, as a weekly increase in US inventories evidence the rising cases of the virus.
European Stocks
European stock fell also along with US and Asian equities, but today stocks stabilised in early trading today. Stoxx600 recovered earlier losses rose by 0.12%, while UK100 index is declining by 0.5% after recent UK news.
On the data front 12-06-2020
| Time (GMT+3) | Event | Impact |
| 09:00 am | GBP Industrial Production (MoM)(Apr) | High |
| 09:00 am | GBP Gross Domestic Product (MoM)(Apr) | High |
| 17:00 pm | USD Michigan Consumer Sentiment Index (Jun) | High |
| 20:00 pm | USD Fed’s Barkin speech | Low |
