Financial Market Journal

In the currency market

EUR: The single currency gained for a third straight day against the dollar, closing 0.25% higher at 1.2327. Technically, initial upside resistance stands at 1.2361, further resistance at 1.2397, key resistance at 1.2445; Initial downside support at 1.2277, further support at 1.2229 and more critical support at 1.2192.

GBP: GBP/USD turned lower to close at 1.3606, down 0.12%. Technically, initial upside resistance stands at 1.3670, further resistance at 1.3737, key resistance at 1.3803; Initial downside support at 1.3537, further support at 1.3471 and more critical support at 1.3404.

JPY: USDJPY rose for the first time in three days to close at 103.07, up 0.40%. Technically, initial upside resistance stands at 103.42, further resistance at 103.86, key resistance at 104.28; Initial downside support is at 102.57, further support at 102.15 and more critical support at 101.72.

The stock market

The Dow Jones Industrial Average extended its early gains Wednesday, climbing above 600 points to 31,000 in mid-session trading, matching the benchmark’s all-time intraday high, with banks leading the gains. The afternoon electoral vote count on Capitol Hill was marred by protests, clashes between demonstrators and police in Washington, a 6pm curfew, a temporary shutdown of the Capitol building and a halt to the vote count. The U.S. stock market plunged in late trading, with the Dow paring gains and the Nasdaq turning lower. The Dow closed up 437.80 points, or 1.44 percent, at a record 30,829.40. The S&P 500 closed up 21.30 points, or 0.57 percent, at 3748.14 after also hitting an intraday record. The Nasdaq closed down 78.20 points, or 0.61 percent, at 12,740.79.

MADRID (MarketWatch) – European stock markets closed higher on Wednesday as the pandemic and the U.S. election remained investors’ focus. The pan-European Stoxx 600 index closed up 6.29 points, or 1.57 percent, at 407.23. Banks led the gains, up 5.7 per cent. Germany’s DAX30 index closed up 240.75 points, or 1.76%, at 13,891.97. The FTSE 100 closed up 229.61 points, or 3.47 per cent, at 6841.86. France’s CAC-40 closed up 66.00 points, or 1.19 percent, at 5630.60. The Euro Stoxx 50 index ended up 63.50 points, or 1.79%, at 3,610.65. Spain’s IBEX35 index closed up 252.00 points, or 3.11%, at 8347.00. Italy’s FTSE MIB index closed up 533.72 points, or 2.40 per cent, at 22,734.32.

Commodity markets

Spot gold settled down $31.40, or 1.61 percent, at $1918.46 an ounce, after hitting as low as $1901.41 and as high as $1959.24.

COMEX gold futures for February delivery fell 2.3% to $1,909.10 an ounce.

Saudi Arabia’s oil minister said on Wednesday that the kingdom had given the industry a great gift and that cutting production was a commercial choice, not a political one, after the previous day’s surprise announcement that the kingdom would voluntarily slash production in February and March. Standard Chartered applauded Saudi Arabia’s dramatic unilateral production cut in the first quarter, saying it had raised the price floor. U.S. WTI crude for February delivery was up 70 cents, or 1.40 percent, at $50.63 a barrel at press time, after hitting an intraday high of $50.94. Brent crude for March delivery also ended up 70 cents, or 1.30 percent, at $54.30 a barrel.

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