The Alibaba stock slid as much as 4% in Hong Kong on Monday after the e-commerce giant has forecasted slow growth for this year. The company projected sales of about 650 billion yuan ($91 billion) and fourth-quarter profit fell 88% from the same period a year ago. The (NYSE: BABA) stock price was down 6% to $199.70 during the last trading session on Friday. "The pandemic has fundamentally altered consumer behaviour and enterprise operations, making digital adoption and transformation a necessity," CEO Zhang said.
Global stocks gained on Tuesday amid hopes of a coronavirus vaccine after American biotech firm Novavax said it started the first human study of its experimental vaccine. The Nikkei 225 surged 529.52 points or 2.55% to 12-week highs of 21271.17 on Tuesday after Prime Minister Shinzo Abe lifted the state of emergency for all of Japan, including Tokyo and its surrounding areas.
Crude oil price rose after Russia reported that its oil output dropped to its target of 8.5 million barrels per day for May and June, in compliance with its OPEC+ deal.
The US dollar index slipped below the 100 level as a sign of improved market sentiment, though the vaccine hopes. The EUR/USD rebounded from yesterday’s low of 1.0869 to above 1.0940. The New Zealand Dollar surged higher after the trade surplus in New Zealand widened sharply to NZD 1267 million in April from NZD 361 million in the same month of the previous year.
The gold price trading steady above $1720 on Tuesday as growing tensions over the Hong Kong national security law and escalation of conflict between US and Iran and Venezuela after a second Iranian vessel carrying fuel had entered Venezuelan waters despite US criticism as both countries are under US sanctions.
The US-based biotech company, Novavax, said on Monday it has started the Phase 1 clinical trial of the vaccine candidate and has enrolled the trial’s first participants, with preliminary results slated as early as July. Novavax will inject 131 volunteers in the first phase of the trial, testing the safety of the vaccine and looking for signs of its effectiveness.
Moving ahead today, the important events to watch:
U.S. CB Consumer Confidence – 14.00 GMT
U.S. New home sales report – 14.00 GMT
In India on Monday posted its biggest single-day jump in cases of COVID-19, overtaking Iran to become one of the 10 worst-hit nations. The news said “India reported another 6,977 cases, taking its total to 138,845. Total deaths have passed 4,000. In UK COVID-19 death toll rose to at least 47,347 on Tuesday. Meantime, UK: Prime Minister Boris Johnson announced that some shops will be able to reopen from June 15.
GOLD: The gold price trading above the $1720 support zone during the European session.
The important levels to watch for today: Support- $1718 and $1700 Resistance- $1738 and $1750.
GBP/USD: The pair recovered from the early losses against the US dollar after buyers found short term support near the 1.2170/1.2160 area. Overall the movement remained bullish throughout the Asian session, at the time writing the pair trading near 1.2270.
The important levels to watch for today: Support- 1.2200 and 1.2160 Resistance- 1.2290 and 1.2330.
Quote of the day: Unsuccessful people make decisions based on their current situations. Successful people make decisions based on where they want to be.