Financial market daily

Last trading session review

In the Chinese lunar New Year holiday lengthened by new crown virus outbreak, on Monday (Feb. 11) Chinese workers and slowly return to work and production factory, U.S. stocks reacted positively to this, the three major indexes also rose, long dollar hit a high again, beauty is referred to the highest reached 98.89 level, spot gold writing remains strong, closed above 1570.

This week, focus on federal reserve chairman colin Powell’s congressional testimony, and the U.S. consumer price index, retail sales and other economic reports.

Fx: eur/usd at 1.0909; GBP/usd closed at 1.2913; Australian dollar/us dollar 0.6686; Usd/jpy 109.76; Usd/cad closed at 1.3315; Dollar/Swiss franc closed at 0.9770.

Commodities: spot gold at $1,571.80 / oz; Comex gold closed at $1,579.50 an ounce; Spot silver at $17.75 an ounce; Comex settled at $17.785 an ounce; Brent closed at $53.27 a barrel; NYMEX crude closed at $49.57 a barrel.

In the currency market

The euro/dollar closed at 1.0927 in New York, down slightly during the session, and was last trading around 1.0911. From the technical side, the MACD green kinetic energy column is steadily stretching, KDJ index low continued to decline, indicating that the exchange rate short-term trend remains bearish. The initial resistance on the upward side of the exchange rate is 1.0944, the further resistance is 1.0977, and the key resistance is 1.0995. The initial support for the decline of the exchange rate was 1.0893, further support was 1.0874, and more critical support was 1.0841.

GBP/USD: this session opened at 1.2937 and was moderately lower during the session before trading around 1.2913. From the technical point of view, the MACD green kinetic energy column slightly contracted, KDJ index low dead fork up, indicating that the exchange rate downward kinetic energy slightly blocked. The initial resistance to the upward movement of the exchange rate is 1.3062, the further resistance is 1.3123, and the more critical resistance is 1.3176. The initial support for the decline of the exchange rate is located at 1.2949, further support is located at 1.2896, and more critical support is located at 1.2835.

Usd/jpy: the session opened at 109.65, up slightly during the session, and was last trading around 109.76. Technically, the MACD red momentum column expanded moderately and the overbought area of the KDJ index forked down, suggesting that the scope for a currency rebound may be limited. The initial resistance to the upward movement of the exchange rate is at 109.91, the further resistance is at 110.06, and the more critical resistance is at 110.24. The initial support for the decline of the exchange rate was 109.59, further support was 109.41, and more critical support was 109.26.

The stock market

Us and European stocks: us stocks rose on Monday, rebounding from losses earlier in the day, led by technology stocks such as amazon. The dow closed up 174.31 points, or 0.6%, at 29,276.82. The s&p 500 rose 0.6% to 3,352.09. The NASDAQ rose from 1 percent to 9,628.39. Both the s&p 500 and NASDAQ hit record highs.

European markets were mixed on Monday on continuing concerns about a coronavirus outbreak in China. The pan-European Stoxx 600 index closed slightly higher, with sectors and major trading pointing in different directions. Oil and gas shares fell more than 1 percent, while construction shares rose a bigger 0.6 percent.

The bond market

Treasury yields fell Monday as investors remained wary of the new coronavirus. The yield on the benchmark 10-year Treasury note fell 3 basis points to about 1.543 percent, while the 30-year yield fell to about 2.015 percent.

Commodity markets

Spot gold was trading at $1,569.91 an ounce in Asia on Monday morning, before rising more than $6 in the short term to $1,576.30 an ounce, but then quickly retreated from its high to fresh session lows of $1,567.61. After the opening of the European market, spot gold first up and then down, in a narrow range of shocks. Gold continued to rebound after the U.S. market opened, hitting a fresh session high of $1,576.80 before retreating from its high to close at $1,571.80.

COMEX gold for April delivery closed up $6.1 an ounce, or 0.39 percent, at $1,579.50.

U.S. WTI crude for March delivery fell 75 cents, or 1.5 percent, to $49.57 a barrel on Monday, its lowest close since Jan. 7, 2019. Brent crude for April delivery closed down $1.20, or 2.2 percent, at $53.27 a barrel on Monday, its lowest close since January 28, 2018. As Chinese companies gradually resume work, the impact of the outbreak on demand for crude oil is beginning to emerge, and major oil producers remain uncertain about their ability to extend production cuts, temporarily putting oil prices under pressure. U.S. WTI crude hit an intraday low of $49.42 a barrel, while Brent hit an intraday low of $53.11.

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