Tuesday, 26 May 2020
- Japan shares reach 10-week high, look past Sino-U.S. tension
- Dollar holds moderate gains in a dull market closed for holiday.
- Oil steadies as demand uncertainty tempers supply cuts
Asian shares crept ahead on Tuesday following an upbeat session in Europe and further gains in U.S. stock futures as investors looked past Sino-U.S. trade tensions to a re-opening world economy.
Japan’s Nikkei led the way with a rise of 1% to its highest since early March when the economic impact of the coronavirus was just becoming clear. MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.1% in early trade, while South Korea rose 0.4%.
The dollar was a fraction firmer on the yen on Monday at 107.75 but well within the 105.97 to 108.08 band that has lasted since the start of May.The euro was all but flat at $1.0900 , having spent the month so far wandering between $1.0765 and $1.1017. Against a basket of currencies, the dollar was idling at 99.788 , sandwiched between support at 99.001 and resistance around 100.560.
In our view Indian Rupee is likely to open around 75.75 levels. It is likely to get support around 75.65 levels and any dip towards 75.50 should be bought. It is likely to have resistance near 75.90 levels and any spike towards 76 should be sold in intraday activity.
Oil prices edged up on Monday in sluggish trading with holidays in Singapore, London and New York, as rising concerns over demand recovery offset supply cuts. Brent rose to $35.81 a barrel , while U.S. oil was flat at $33.74 a barrel.
Source : Reuters