Market Brief: ASX Pare Losses On Strong Retail Sales, Asian Stocks Mixed

ASX 200
ASX 200

Asian markets trading mixed on Wednesday after two days of intense selling amid the turbulence in crude oil markets. Wall Street finished lower yesterday for the second consecutive session since April 1st. The brent crude oil trading to multi-year lows at 16.88 per barrel as the pressure in WTI crude oil futures continues.

Global confirmed coronavirus cases had reached 2,400,000, according to the World Health Organization while the death toll has hit 170,000. China reported today 30 new coronavirus cases, up from 11 yesterday.

Nikkei 225 finished 0.74% lower at 19,137 having breached earlier the 19,000 mark for the first time the last two weeks. The Singapore Straits Times is 0.54% lower at 2,538. The Shanghai Composite is 0.55% lower at 2,842, while the Hang Seng Index is 0.34% higher at 23,875.

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ASX 200 Pare Gains On Strong Retail Sales

ASX 200 managed to rebound from early losses that reached 2.3% and return to the unchanged level. Strong retail sales increased by 8.2% in March as consumers stockpile groceries amid the coronavirus lockdown. March retail sales for food, toilet and tissue paper, almost doubled. Electronics and office supplies also came stronger than expected. April retail data expected also to be strong as the panic buying intensified. On the other hand, yesterday reported that the number of jobs in Australia dropped by 6% in March. RBA projects a GDP contraction by 10% in the first half of 2020, and the unemployment rate to hit also 10%.

On the upside, immediate resistance stands at 5,251 the daily top. More offers would emerge at 5,362 the high from yesterday’s trading session. The April top at 5,567 is the next supply zone.

On the downside, first support for ASX 200 stands at 5,100 the daily low. If the selling pressure persists the next level to watch is at 5,028 the low from April 3. Next support will be met at 4,842 the low from March 30.

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