Financial market daily

Last trading session review

On March 2, the dollar index remained weak, spot gold closed slightly higher, and the three major U.S. stock indexes surged, with the dow up more than 1,200 points.

On Tuesday, the focus will be on primary elections in 14 U.S. states, a speech by federal reserve governor Janet Yellen and emergency conference calls from G7 countries.

Fx: eur/usd close at 1.1131; GBP/usd closed at 1.2751; Australian dollar closed at 0.6534 usd; Usd/jpy 108.29; Usd/cad closed at 1.3326; Dollar/Swiss franc closed at 0.9591.

Commodities: spot gold at $1589.33 / oz; Comex gold futures closed at $1,594.80 an ounce; Spot silver settled at $16.72 an ounce; Comex settled at $16.739 an ounce; Brent closed at $51.90 / BBL; NYMEX crude closed at $46.75 a barrel.

In the currency market

The euro/dollar last traded at $1.1124 in New York, up slightly during the session, and was last trading around $1.1135. From a technical point of view, the MACD red kinetic energy column continues to stretch, KDJ indicator high turns head downward, indicating that the exchange rate short-term upward kinetic energy is still released. The initial resistance to the upward movement of the exchange rate is 1.1199, the further resistance is 1.1265, and the key resistance is 1.1347. The initial support for the decline of the exchange rate is located at 1.1051, further support at 1.0970, and more critical support at 1.0903.

GBP/USD: this session opened at 1.2763, during the session pressure hit, late trading around 1.2746. From a technical perspective, MACD green momentum column moderate expansion, KDJ index low continued to decline, indicating that the recent decline in the exchange rate remains strong. The initial resistance to the upward movement of the exchange rate is located at 1.2822, further resistance at 1.2892 and more critical resistance at 1.2934. The initial support for the decline of the exchange rate is located at 1.2711, further support is located at 1.2669, and more critical support is located at 1.2599.

Usd/jpy: the session opened at 107.77 and recovered strongly during the session before trading around 108.31. From a technical perspective, the MACD green kinetic energy column stretched significantly, KDJ indicator oversold area gold forked up, suggesting that the exchange rate correction risk is rising. The initial resistance to the upward movement of the exchange rate is at 108.80, further resistance is at 109.29, and the more critical resistance is at 110.01. The initial support for the decline of the exchange rate is at 107.58, further support is at 106.86, and more critical support is at 106.36.

The stock market

Us and European stocks: European markets closed slightly higher on Monday as investors weighed the prospect of a global monetary policy response to mitigate the economic impact of the new coronavirus. The pan-European Stoxx 600 index rose 0.1 percent after rising as much as 2 percent in volatile morning trading. Most sectors and major exchanges are in positive territory.

Stocks rebounded sharply from their worst week since the financial crisis on Monday and accelerated sharply before the close, with the dow recording its biggest one-day gain in more than a decade, as expectations that the federal reserve would cut interest rates helped fuel a rally. The dow closed up 1293.96 points, or 5.1%, at 26,703.32. It was the dow’s biggest gain since March 2009 and the biggest point gain ever for 30 stocks. The s&p 500 rose 4.6 percent to 3,090.23, its biggest one-day gain since December 26, 2018. The NASDAQ also posted its biggest one-day gain since 2018, rising 4.5% to 8,952.16.

The bond market

The yield on the 10-year Treasury note fell to a record low on Monday as U.S. interest rates continued to slide amid the outbreak of the new coronavirus and Wall Street’s calls for fed stimulus. The yield on the 10-year note fell to a record low of 1.030% overnight before recovering to close at 1.060%. The yield on the two-year Treasury note fell to 0.71 percent, threatening to break through its November 2016 low. The yield on the 30-year Treasury note hit a record low of 1.623 percent.

Commodity markets

Spot gold started at $1,584.74 an ounce in Asia on Monday morning, then quickly fell nearly $10 to a fresh low of $1,575.20 before continuing to climb sharply from that low and soon again crossing the $1,600 mark. Gold extended its rally to a new session high of $1,610.70 an ounce in early trading in Europe, before retreating from gains. Gold struggled to stay above $1, 600 in early trading and suffered another late decline to close at $1, 589.33 an ounce.

COMEX gold for April delivery closed up more than $28, or 1.8 percent, at $1,594.80 an ounce, recovering some of Friday’s losses.

U.S. WTI crude for April delivery closed up $1.99, or 4.5 percent, at $46.75 a barrel on Monday. Brent may crude settled up $2.23, or 4.5 percent, at $51.90 a barrel on Monday. Oil’s biggest one-day gain of the year was driven by the prospect of more production cuts from major oil producers and a stock market rally that boosted risk sentiment. U.S. WTI crude hit an intraday high of $47.48, while Brent hit an intraday high of $52.72.

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