Equities

Asian stock markets closed mixed with the focus shifting to a virtual meeting between US President Joe Biden and Chinese President Xi Jinping.

The ASX 200 (-0.7%) declined amid slumps in almost all sectors especially the mining sector.

The Nikkei 225 (+0.1%) rose slightly due to the weak JPY and after details of the upcoming draft stimulus plan were published recently but with the upside limited by resistance on the approach to the 30k level.

Hang Seng (+1.1%) while Shanghai Composite (-0.2%) was boosted by a virtual meeting between President Biden and President Xi where President Biden stated that he hopes the leaders can meet face to face in the future.

Commodities

Crude oil prices recovered above $ 80 a barrel on Tuesday although there were still doubts over the Biden administration’s approach in curbing high gasoline prices.

Gold prices hovered above the $ 1,860 level on Monday as investors turned to gold after US inflation soared to its highest level since November 1990.

Forex

The US dollar hovered around the 95.50 level amid a virtual meeting between US President Joe Biden and Chinese President Xi Jinping.

The AUD depreciated as the minutes of the RBA meeting showed that the central bank remains committed to supporting the Australian economy and the economy is expected to rebound when the COVID-19 restrictions are further eased.

The RBA also stressed that interest rates will not be raised until wage growth and inflation meet the criteria, and it is seen that this will not happen before 2024.