Financial markets daily

last session market review

The dollar index.dxy ended lower at 101.78 in volatile trading. Spot gold closed up $75 at $1,628.60 an ounce after briefly breaching the $1,630 mark. Major U.S. stock indexes rallied strongly, with the dow up more than 2,100 points, or more than 11 percent, for its biggest one-day gain since 1933.

The rest of the day will focus on the UK CPI for February and us durable goods orders for February.

Fx: Eur/USD 1.0788; The pound closed at $1.1759; The Australian dollar closed at 0.5957; The dollar closed at 111.21 yen; The dollar was last at 0.9811 Swiss francs.

Commodities: spot gold closed at $1,628.60 an ounce; Comex gold ended at $1,628.60 an ounce; Spot silver settled at $14.28 an ounce; Comex silver ended at $14.257 an ounce; Brent crude closed at $27.39 a barrel; NYMEX crude finished at $24.01 a barrel.

In the currency market

Euro: the euro closed higher for the third day in a row at 1.0786 against the dollar after the dollar’s recent surge. On the technical level, the pivot point of the currency pair is at 1.0798, the initial resistance to the upward movement of the exchange rate is at 1.0877, the further resistance is at 1.0967, and the key resistance is at 1.1045. The initial support of the exchange rate down at 1.0708, further support at 1.0629, more critical support at 1.0539.

Sterling: the pound/dollar rally returned to close up at 1.1732. On the technical plane, the pivot point of the currency pair is 1.1677, the initial resistance to the exchange rate rise is 1.1878, the further resistance is 1.2000, and the more critical resistance is 1.2201. The initial support of the exchange rate down at 1.1555, further support at 1.1354, more critical support at 1.1232.

Yen: dollar/yen’s five-month winning streak came to an abrupt end but remained above the 111 level at 111.21. On the technical plane, the pivot point of the currency pair is 111.00, the initial resistance to the exchange rate rise is 111.93, the further resistance is 112.64, and the more critical resistance is 113.57. The initial support of the exchange rate down at 110.29, further support at 109.36, more critical support at 108.65.

The stock market

U.S. and European stocks: the dow jones industrial average rallied on Tuesday, Posting its biggest one-day gain since 1933, as investors bet that Congress would soon enact an economic stimulus bill that would rescue the stalled economy from the lingering effects of a novel coronavirus. The average of 30 stocks closed up 2,112.98 points, or more than 11%, at 20,704.91, the biggest one-day percentage gain since 1933. The s&p 500 rose 9.4% to 2,447.33, its biggest one-day gain since October 2008. The NASDAQ composite index rose 8.1% to 7,417.86, its biggest one-day gain since March 13. Both the dow and the s&p 500 have recovered from their lowest levels since late 2016.

European stock markets closed sharply higher Tuesday on the federal reserve’s stimulus measures and a second straight day of declines in novel coronavirus infections in Italy. All sectors and major exchanges closed higher, with the pan-European Stoxx 600 indexes closing up 8.4 percent, its biggest gain since November 2008. Among them, the insurance sector led the rise, up 14.2%.

The bond market

The yield on the benchmark 10-year Treasury note rose 6 basis points to 0.816 percent on Tuesday, while the yield on the 30-year note rose 5 basis points to 1.398 percent.

Commodity markets

International spot gold opened at $1553.60 an ounce on Tuesday morning and soon hit a session low of $1552.40 an ounce before settling below $1590. After the European market opened, the bulls launched a strong attack, gold since all the way up the shock, and broke through the $1,600 mark. On Wall Street, bulls continued to push gold higher, pushing it to a session high of $1,632.90 an ounce, up to $80 from session lows, before easing slightly from the high to close at $1,628.60.

COMEX gold futures for April delivery closed up $93.20, or nearly 6.0%, at $1,660.80 an ounce, the biggest one-day gain in 11 years.

Oil prices rose as much as 3 percent on Tuesday as Wall Street rallied on expectations the us senate would pass a $2tn stimulus bill to ease the impact of the new crisis on the world’s largest economy. U.S. WTI crude for April delivery closed up 65 cents, or 2.78 percent, at $24.01 a barrel. Us WTI crude fell 29 percent last week, its biggest weekly drop since January 13, 1991, when it fell 29.5 percent. Brent crude for May delivery rose 36 cents, or 1.3 percent, to $27.39 a barrel on Monday. The price of Brent crude fell 25 percent last week.

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