Asia Pacific Market Open – Crude Oil, S&P 500, US Dollar, Fed, Asia Stocks, Japanese Yen
- Crude oil prices[1] wiped out recent gains as China stockpiled, temporary climb due again?
- Global stock markets continued selling off as illiquidity slowly sets into financial markets
- US Dollar[2] resumed dominant uptrend, Australian Dollar[3] may depreciate with Asia stocks
Check out our 4Q forecast for the US Dollar in the DailyFX Trading Guides page[4]
As financial markets inched closer to the Thanksgiving Day holiday in the US and illiquidity slowly set in, Tuesday’s trading session was nothing short of quiet. Crude oil prices tumbled about seven percent which was the worst performance in a day since February 2016. The commodity wiped out all of the progress it made to the upside in recent sessions as it closed at its lowest in over a year.
Some of the declines in crude oil may be attributed to OPEC supply cut doubts[5]. But, a little over an hour before the drop in the commodity accelerated, a report from S&P Global Platts crossed the wires noting that Chinese oil inventories rose 416.7% in October[6]. Furthermore, sentiment-sensitive oil prices were weighed down by another rout in global benchmark stock indexes as anticipated[7].
The S&P 500[8] gapped about 1.34% to the downside on Tuesday, and continued trading lower in the aftermath of a bearish reversal candlestick pattern pointed out earlier this month[9]. This followed weakness in Asia and European equities. An APEC meeting from earlier this week, which ended without a US-China agreement, overshadows the former.
