Financial Market Daily

In the currency market

EUR: EUR/USD turned lower to close at 1.2155, down 0.42%. Technically, initial upside resistance stands at 1.2203, further resistance at 1.2255, key resistance at 1.2287; Initial downside support stands at 1.2120, further support at 1.2088 and more critical support at 1.2037.

GBP: GBP/USD reversed course to close at 1.3639, down 0.15%. Technically, initial upside resistance stands at 1.3685, further resistance at 1.3738, key resistance at 1.3775; Initial downside support at 1.3594, further support at 1.3557 and more critical support at 1.3504.

JPY: USD/JPY turned positive to close at 103.88, up 0.10%. Technically, initial upside resistance stands at 104.06, further resistance at 104.26, key resistance at 104.54; Initial downside support at 103.58, further support at 103.31 and more critical support at 103.11.

The stock market

As for additional fiscal stimulus, Senate Democratic leader Charles Schumer pledged that the first goal of the Biden administration would be to push for a new bailout bill, including raising cash checks to $2,000 and increasing support for vaccines, small and medium-sized businesses, schools and state and local governments. Investors continued to focus on the impeachment case against President Donald Trump, as stocks swung back and forth on Wednesday as the U.S. House of Representatives voted on an impeachment resolution after Vice President Mike Pence refused to invoke the Constitution to remove him from office. At the close, the Dow was down 31.30 points, or 0.10%, at 31060.47. The S&P 500 rose 8.70 points, or 0.23 percent, to 3,809.84. The Nasdaq closed up 56.50 points, or 0.43 percent, at 13,128.95.

With investors still keeping a close eye on the launch of the new vaccine and domestic politics in the US, European stocks closed higher on Wednesday, with only the UK’s FTSE 100 index ending lower. The pan-European Stoxx 600 index closed up 0.46 points, or 0.11 percent, at 409.07. Telecommunications stocks led the way with a 1.1% gain, while travel and leisure stocks fell 1.1%. Germany’s DAX30 index closed up 145.65 points, or 0.11%, at 13,939.71. Britain’s FTSE 100 index closed down 8.59 points, or 0.13%, at 6,745.52. France’s CAC-40 index ended up 11.70 points, or 0.21 percent, at 5,662.67. The Euro Stoxx 50 index ended up 4.42 points, or 0.12 percent, at 3,616.55. Spain’s IBEX35 index closed up 14.10 points, or 0.17%, at 8360.00. Italy’s FTSE MIB index closed 97.58 points higher, or 0.43 per cent, at 22,743.65.

Commodity markets

Spot gold settled down $9.43, or 0.53 percent, at $1,776.70 an ounce in late afternoon trading, after hitting as high as $1,789.85 and its lowest since Aug. 2 at $1,764.34. It fell $102.23, or 5.44%, in November, its fourth straight monthly decline.

Comex February gold futures fell 0.4% to settle at $1,780.90 an ounce, the lowest close since early July and down 5.6% for November, the fourth straight month of losses.

Crude oil futures fell on Wednesday as rising cases of new infections and deaths from CoviD-19 in Europe and the United States, mixed promotion of the new crown vaccine, and a rebound in the U.S. dollar weighed on crude oil futures. U.S. WTI crude for February delivery ended down 30 cents, or 0.56 percent, at $52.91 a barrel at press time. Brent crude for March delivery ended down 52 cents, or 0.92 percent, at $56.06 a barrel.

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