Last trading session review
Crazy night! Overnight global market selloff, the dow tumbled 1000 points, the three major U.S. stock indexes fell more than 3%, to $safe-haven appeal is weakened and the yen to regain favor, spot gold surged nearly 3%, once high refresh seven years to near $1689, oil prices have plummeted 4%, once because of outside China cases sharp increase caused by worries about global economic growth.
On Tuesday, watch the conference board’s consumer confidence index, the Richmond fed’s manufacturing index, the final reading of Germany’s GDP, and speeches by federal reserve presidents larry Clarida and Robert Kaplan.
Fx: eur/usd at 1.0851; GBP/usd closed at 1.2920; Australian dollar/us dollar 0.6605; Usd/jpy 110.70; Usd/cad closed at 1.3292; Dollar/Swiss franc closed at 0.9785.
Commodities: spot gold at $1,659.20 / oz; Comex gold closed at $1,676.6 an ounce; Spot silver at $18.60 an ounce; Comex futures ended at $18.876 an ounce; Brent closed at $56.30 / BBL; NYMEX crude closed at $51.43 a barrel.
In the currency market
The euro/dollar last traded at 1.0832 in New York, recovering slightly during the session, and was last trading around 1.0853. From a technical point of view, the MACD green kinetic energy column has contracted completely, KDJ index pointing above the Central Line, indicating that the exchange rate short-term rebound probability has climbed. The initial resistance on the upward side of the exchange rate is 1.0882, the further resistance is 1.0911, and the key resistance is 1.0949. The initial support for the downward trend of the exchange rate is 1.0814, further support is 1.0776 and more critical support is 1.0747.
GBP/USD: this session opened at 1.2920, trading in a tight range, and ended trading around 1.2928. From a technical point of view, MACD green momentum is basically flat, KDJ index line below the gold fork up, indicating that the recent decline in the exchange rate may be able to ease. The initial resistance to the upward movement of the exchange rate is 1.2958, the further resistance is 1.2991, and the more critical resistance is 1.3027. The initial support for the decline of the exchange rate is located at 1.2890, further support is located at 1.2853, and more critical support is located at 1.2821.
Usd/jpy: this session opened at 110.83, fell moderately during the session, and ended trading around 110.66. From a technical point of view, the MACD red momentum column is steadily shrinking, and the KDJ indicator is moving down out of the overbought zone, suggesting that the currency is under pressure to retreat. The initial resistance to the upward movement of the exchange rate is 111.48, the further resistance is 112.26, and the more critical resistance is 112.83. The initial support for the decline of the exchange rate was 110.12, further support was 109.54, and the more critical support was 108.76.
The stock market
Us and European stocks: stocks fell sharply on Monday as a surge in new cases of coronavirus outside China raised concerns that the spread of the virus would lead to a prolonged global economic slowdown. The dow closed down 1,031.61 points, or 3.56%, at 27,960.80. The s&p 500 fell 3.35 percent to 3,225.89, while the NASDAQ fell 3.71 percent to 9,221.28. It was the dow’s biggest drop since February 2018. The dow also gave up gains for 2020 and is down 2% this year. The s&p 500 also had its worst day in two years, erasing year-to-date gains.
European stocks closed sharply lower on Monday as investors focused on the continuing spread of the drug beyond China. The pan-European Stoxx 600 index temporarily closed 3.8 percent lower, led by a drop of more than 6 percent in the travel and leisure sector, with all sectors falling sharply into the red. Italy’s FTSE MIB index fell more than 1,350 points or 5.5%. Over the weekend, the country reported a surge in new coronavirus cases.
The bond market
Treasury yields tumbled on Monday as investors worried about the global spread of the new coronavirus and its impact on the global economy. The yield on the 10-year Treasury note fell to a three-year low, while the yield on the 30-year note fell to a record low. The yield on the 10-year Treasury note fell to its lowest level since July 2016. The yield on the 30-year Treasury note hit a record low. Stocks tumbled as investors turned to bonds, with the Dow down more than 800 points. The yield on the benchmark 10-year Treasury note, which moves inversely to price, fell 8 basis points to 1.3856 percent. The yield on the 30-year Treasury note fell to 1.8321%.
Spot gold started Monday morning trading at a session low of $1,643.32 an ounce in Asia. Gold quickly climbed nearly $37 from its low to hit the $1,680 barrier before retreating from its high to $1,660 to remain in a tight trading range. Gold continued to climb in early trading in Europe to a fresh session high of $1, 688.90 an ounce before edging down from its high. Gold prices remained high after the U.S. market opened, but were sharply sold off late in the session, falling about $20 to just above $1,650 before recovering modestly from low levels to close at $1,659.20 an ounce.
COMEX gold for April delivery closed up $27.8, or 1.69 percent, at $1,676.6 an ounce.
U.S. WTI crude for April delivery fell $1.95, or 3.7 percent, to $51.43 a barrel on Monday, its lowest close since Feb. 13. Brent crude for April delivery closed down $2.20, or 3.8 percent, at $56.30 a barrel on Monday, its lowest close since Feb. 12. The worsening of the disease in many places outside China has added to the challenge to oil demand, and the oil bulls are in disarray. U.S. WTI crude hit an intraday low of $50.45 a barrel, while Brent hit an intraday low of $55.13.