On Monday (Feb. 3) year of the rat on the Shanghai composite index dropped nearly 8%, but with the new cases in China to take measures to ease the impact on the economy and promised to take more measures to contain the outbreak, market risk sentiment improves, U.S. stocks also rose, the safe-haven yen and Swiss franc gains an abrupt end, the dollar index sharply to 97.85, near the spot gold fell sharply to the high near $1575. But the sell-off intensified into a bear market.
The session will focus on the outbreak of pneumonia in wuhan, the rba’s decision on interest rates and Donald trump’s state of the union address.
Fx: eur/usd 1.1058; GBP/usd closed at 1.2993; Australian dollar/usd closed at 0.6691; Usd/jpy 108.67; Usd/cad closed at 1.3288; Dollar/Swiss franc closed at 0.9659.
Commodities: spot gold at $1576.49; Comex gold closed at $1582.40 an ounce; Spot silver at $17.66 an ounce; Comex settled at $17.670 an ounce; Brent closed at $54.45 a barrel; NYMEX crude closed at $50.11 a barrel.
n the currency market
In New York, the euro traded at $1.1054, trading in a tight range, before closing around $1.1059. From a technical point of view, the MACD green kinetic energy column has sharply contracted, and the KDJ indicator is approaching the overbought zone, indicating that the recent rally momentum of the exchange rate is still being released. The initial resistance to the upward movement of the exchange rate is 1.1090, further resistance is 1.1120, and the key resistance is 1.1145. The initial support for the decline of the exchange rate is located at 1.1034, further support is located at 1.1009, and more critical support is located at 1.0979.
GBP/USD: this session opened at 1.3035, during which time the pressure retracement, last traded around 1.2992. From a technical point of view, the MACD red kinetic energy column contracted completely, the KDJ index continued to decline below the Central Line, indicating that the exchange rate short-term downside risk is still large. The initial resistance on the upward side of the exchange rate is 1.3125, the further resistance is 1.3257, and the more critical resistance is 1.3328. The initial support for the decline of the exchange rate is 1.2923, further support is 1.2851, and more critical support is 1.2720.
Usd/jpy: the session opened at 108.49, moderately higher during the session, and was last trading around 108.67. Technically, the MACD green momentum column contracted slightly, while the oversold KDJ indicator continued its downward trend, suggesting a slight lack of momentum in the currency correction. The initial resistance to the upward movement of the exchange rate is at 108.89, further resistance is at 109.10, and the more critical resistance is at 109.39. The initial support for the decline of the exchange rate is at 108.40, further support is at 108.10, and the more critical support is at 107.90.
The stock market
Us and European stocks: us stocks rose strongly on Monday, recouping some of the previous session’s steep losses, but investors remained cautious about the rebound amid lingering coronavirus concerns. The dow closed up 143.78 points, or 0.5%, at 28,399.81. The s&p 500 rose 0.7 percent to 3,248.92. The NASDAQ rose 1.3 percent to 9,273.40.
European stocks closed higher on Monday, rebounding from last week’s steep losses, as fears of a coronavirus outbreak appeared to ease. The pan-European Stoxx 600 index initially rose 0.3 percent, led by technology stocks. However, the oil and gas industry has bucked the trend amid fears that the spread of the coronavirus could hit demand in China. Germany’s DAX closed up 63.67 points, or 0.49 percent, at 13045.64. The FTSE 100 closed up 41.44 points, or 0.57%, at 7,327.45. France’s CAC-40 index closed up 26.17 points, or 0.45 percent, at 5,832.51.
Spot gold started at $1,589.81 an ounce in Asia on Monday morning, then quickly rallied to a new session high of $1,591.80 before falling from its high. Around the start of the European session, spot gold extended its losses and hit a low of $1,573.08 an ounce before recovering slightly from that low and maintaining a tight range around $1,580. After the U.S. market opened, bears again attacked, with gold falling about $10 in the short term and refreshing session lows to $1,570.86 before edging back up again and holding tight to close at $1,576.49.
COMEX gold for April delivery closed down $5.50, or 0.35%, at $1582.40 an ounce.
U.S. WTI crude for March delivery closed down $1.45, or 2.8 percent, at $50.11 a barrel on Monday, its lowest close since January 2019, while marking the start of a bear market for the oil sector as it fell 20.8 percent from a high of $63.27 a barrel on Jan. 6. Brent crude for April delivery closed down $2.17, or 3.8 percent, at $54.45 a barrel on Monday, its lowest close since Dec. 31, 2018. While major oil producers are considering expanding production cuts to stabilize the oil market, the outbreak has sharply challenged the outlook for crude demand, which has weighed on oil prices. U.S. WTI crude hit an intraday low of $49.80 a barrel, while Brent hit an intraday low of $54.08.