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Market News 【TOP1 Evening】Gold eases as stronger dollar offsets U.S. stimulus aid boost; Oil slips again!

【TOP1 Evening】Gold eases as stronger dollar offsets U.S. stimulus aid boost; Oil slips again!

U.S. Senate approves $900 billion stimulus package; Global stocks plunge despite a historic $900 billion U.S. stimulus package deal; Tesla dips after a report that Apple' iCar' could emerge in 2021.

TOPONE Markets Analyst
2020-12-22
429

晚间新闻.jpg


Gold 


Gold prices fell on Tuesday, hurt by a stronger dollar that countered support from the U.S. Congress passing a long-awaited COVID-19 stimulus bill, while some profit-taking added further pressure.


Spot gold fell 0.24% to $1871.85 per ounce by 18:00 (GMT+8).


The U.S. Congress on Monday approved an $892 billion coronavirus aid to support the pandemic-ravaged economy, with President Donald Trump expected to sign the package into law soon.


Pressuring gold, the dollar firmed as a new coronavirus strain in Britain that prompted a lockdown and caused several countries to shut their borders to Britain, clouded the global economic recovery outlook and pushed Asian shares lower.


Though inflation has yet to materialise, the large amount of low-yielding bonds underscores non-yielding gold's status as a safe-haven asset, said Hitesh Jain, lead analyst at Mumbai-based Yes Securities.


Gold should trade in a $1,850-$1,930 range in the near-term, underpinned by pandemic developments, he added.


On the technical front, gold may revisit its Nov. 30 low of $1,764.29 per ounce next quarter, according to Reuters analyst Wang Tao.


By 18:00 (GMT+8), silver fell 1.05% to $25.858 per ounce; bitcoin fell 2.15% to $22642.


Forex


The dollar was firm on Tuesday but was well below peaks hit on Monday's wild ride higher, as a new coronavirus strain in Britain sent jitters through holiday-thinned currency markets.


The U.S. dollar index rose 0.18% to 90.19 by 18:00(GMT+8).


Low liquidity, with many traders logged out for the year, exaggerated the speed and size of the dollar's gains against other currencies, too, as stop-loss mechanisms dumped investors out of bets against the greenback.


"The euro found an abundance of buyers on the deep dip," said Stephen Innes, Bangkok-based chief strategist at currency broker Axi.


"The 'short dollar' clear-out is probably nothing more nefarious than stretched positioning getting taken out to the woodshed on Brexit scares. However, it shows the potential dangers of universally bearish dollar sentiment," he said.


At 18:00(GMT+8), the EUR/USD fell 0.22% to 1.22127; the GBP/USD was down 0.21% to 1.34351; the AUD/USD fell 0.57% to 0.75452; theUSD/JPY rose 0.11% to 103.398.


Crude Oil


Oil prices fell on Tuesday, extending sharp losses overnight.


U.S. West Texas Intermediate (WTI) crude was at $47.243 barrel, fell 1.22%, Brent was down to $50.301 a barrel, fell 1.06% by 18:00 (GMT+8).


After the U.K. government warned that a new variant of the virus seemed to be spreading much faster than previous kinds, India, Pakistan, Russia, Jordan and Hong Kong joined European countries in suspending travel from Britain, and Saudi Arabia, Kuwait and Oman closed their borders completely.


"The nightmare before Christmas scenario has set in, with a combination of the 'mutant virus' compounded by Brexit angst," said Stephen Innes, chief market strategist at Axi, referring to doubts over whether U.K. Prime Minister Boris Johnson can secure a post-Brexit trade deal with the European Union.


Innes said the oil market had been overbought, with long positions outweighing short positions by around 4 to 1, so the selloff was inevitable.


With the U.S. dollar rising as a safe-haven currency, U.S.-dollar priced oil is less attractive for buyers holding other currencies, which added to pressure on oil prices.


Stocks


Stocks in Asia-Pacific closed down in Tuesday trade.


Nikkei 225 fell 278.03 points or 1.04%, close at 26,436.39.


S&P/ASX 200 fell 70.30 points or 1.05% to close at 6,599.60.


Hang Seng Index fell 187.43 or 0.71% to 26,119.25.


South Korea's Kospi fell 44.97 points or 1.62% to 2,733.68.


Taiwan capitalization-weighted stock index fell 207.50 points, or 1.44%, at 14,177.46. 


Stocks fell on Tuesday despite U.S. lawmakers striking a long-awaited deal on a $900 billion stimulus package over the weekend, as concerns over a new coronavirus strain in the U.K. threaten the travel industry.


But UBS says a combination of the rollout of effective vaccines, U.S. federal relief spending, and ongoing easy monetary policy supports further upside for equities.


"We recommend staying invested in equities and diversifying for the next leg of the rally," said Mark Haefele, the chief investment officer at UBS Global Wealth Management. "We see further upside in cyclical stocks such as global small caps, which tend to lead in recoveries and expansions, but which have lagged the recovery in leading economic indicators and remain attractively valued."


Tesla's S&P 500 inclusion is official and its debut is not looking so good.


The shares shed 6.5% on Monday as investors who bought the stock in anticipation of its entry into the benchmark cashed in. The stock fell to its session low following a report that Apple is moving forward with its electric vehicle production.


Apple has tested self-driving cars in California.


Focus Tonight


21:30(GMT+8): United States GDP Growth Rate QoQ Final (Q3), Forecast:33.1%, Previous: -31.4%;


23:30(GMT+8):CB Consumer Confidence (DEC), Forecast: 97, Previous: 96.1;


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