Last trading session review
Fears of a new outbreak continued to flood the market on Wednesday, with 10-year Treasury yields hitting record lows, U.S. stocks turning lower and the dollar generally little changed as investors scaled back expectations that the federal reserve would signal further easing. Spot gold was volatile, settling just above 1540.
On Thursday, federal reserve bank of England governor mark carney and European central bank President Christine lagarde will deliver speeches focusing on U.S. GDP, durable goods, first-time hiring and existing home sales.
Fx: euro/dollar at 1.0880; GBP/usd closed at 1.2910; Australian dollar/us $0.6548; Usd/jpy 110.41; Usd/cad closed at 1.3330; Dollar/Swiss franc closed at 0.9767.
Commodities: spot gold at $1,640.44; Comex gold futures closed at $1,643.10 an ounce; Spot silver at $17.90 an ounce; Comex settled at $17.834 an ounce; Brent closed at $53.43 a barrel; NYMEX crude closed at $48.73 a barrel.
In the currency market
Euro/dollar last traded at 1.0862 in New York after a choppy session, before closing around 1.0882. Technically, the MACD red kinetic energy column is moderately stretched, and the KDJ index continues to move higher, indicating that the short-term rebound in the exchange rate may continue. The initial resistance on the upward side of the exchange rate is 1.0904, the further resistance is 1.0928, and the key resistance is 1.0965. The initial support for the decline of the exchange rate was 1.0856, further support was 1.0831, and more critical support was 1.0807.
GBP/USD: this session opened at 1.2922 and was moderately under pressure during the session. From a technical point of view, the MACD green momentum column has expanded slightly, while the KDJ indicator points to a dead fork above the midline, indicating that the near-term downside risk to the exchange rate is still rising. The initial resistance to the upward movement of the exchange rate is 1.2871, the further resistance is 1.3046, and the more critical resistance is 1.3084. The initial support for the decline of the exchange rate is located at 1.2858, further support is located at 1.2820, and more critical support is located at 1.2744.
Usd/jpy: this session opened at 110.49 and fell slightly during the session before trading around 110.39. From a technical point of view, the MACD red kinetic energy column has contracted completely, and the KDJ index is close to the oversold area, indicating that the downward momentum of the exchange rate is still being released. The initial resistance on the upward side of the exchange rate is at 110.70, further resistance is at 110.99, and the more critical resistance is at 111.28. The initial support for the decline of the exchange rate was 110.13, further support was 109.84, and the more critical support was 109.55.
The stock market
Us and European stocks: European markets closed mixed as the number of coronavirus infections outside China exceeded those at home for the first time. The pan-European Stoxx 600 index temporarily closed just below the flat line, giving up some of its earlier losses. Travel and leisure stocks were the worst performers, falling more than 2 percent.
European stocks closed lower on Thursday. While the spread of the new coronavirus in mainland China has slowed, disappointing earnings reports have weighed on investor sentiment. The pan-European Stoxx 600 index temporarily closed down 0.6 percent, led by a 1.7 percent drop in the insurance sector, while autos were the only gainers, up 0.7 percent.
The bond market
On Wednesday, the yield on the 10-year us Treasury note fell after an initial rally to an all-time low as concerns grew about a rapidly spreading new coronavirus and its impact on the global economy. The yield on the benchmark 10-year Treasury note, which moves inversely to price, fell 4 basis points to 1.302 percent, just below Tuesday’s record low of 1.307 percent. The benchmark yield rose about 3 basis points in early trading. The yield on the 30-year Treasury note also fell to 1.807%, near a record low.
International spot gold opened at $1,634.55 an ounce Wednesday morning in Asia before continuing to rise. Gold extended its rally to a fresh session high of $1, 654.70 an ounce in early trading in Europe, before retreating from gains. Around the opening bell, gold’s decline accelerated to a session low of $1,625.20 an ounce, falling nearly $30 from a session high in about 5 1/2 hours. Gold later rebounded from its lows as bulls again tried to hit the $1,650 barrier but failed to close at $1,640.44 an ounce.
COMEX gold for April delivery closed down 0.4 percent, down for a second straight session at $1,643.10 an ounce.
U.S. WTI crude for April delivery closed down $1.17, or 2.3 percent, at $48.73 a barrel on Wednesday, its lowest close since Jan. 7. Brent crude for April delivery closed down $1.52, or 2.8 percent, at $53.43 a barrel on Wednesday, its lowest close since Feb. 10. The spread of the disease outside China continued to worsen, raising concerns that it could affect the global economic outlook. Oil prices fell for a fourth straight day as demand for crude continued to come under pressure. U.S. WTI crude hit an intraday low of $48.30 a barrel, while Brent hit an intraday low of $53.03.