Last session market review
In the previous session, the dollar index fell below 101 and closed below that level. Spot gold closed down 0.83 percent at $1615.16 an ounce, briefly falling below the $1,600 mark. U.S. stocks closed higher, with the dow up more than 2 percent, bringing its two-day gain to more than 13 percent.
The rest of the day will focus on us jobless claims, GDP and PCE data, bank of England interest rate decisions and minutes, the federal reserve’s one-week balance sheet and the G20 special summit.
Fx: Eur/USD 1.0880; The pound closed at 1.1874; The Australian dollar closed at 0.5958; The dollar closed at 111.19 yen; Us $1.4188; The dollar was last at 0.9766 Swiss francs.
Commodities: spot gold closed at $1,615.16 an ounce; Comex gold closed at $1,633.40 an ounce; Spot silver settled at $14.44 an ounce; Comex silver ended at $14.873 an ounce; Brent crude closed at $27.39 a barrel; NYMEX crude closed at $24.49 a barrel.
In the currency market
The euro: the dollar fell after a recent rally, with the euro closing higher for the fourth day in a row at 1.0880, up 0.85%. On a technical level, the pair is gaining strength, having now surpassed the 23.6% retracement of the latest session’s decline at 1.0840. The initial resistance to the exchange rate rise is at 1.0885, further resistance at 1.0920, the key resistance at 1.0960; The initial support of the exchange rate down at 1.0840, further support at 1.0800, more critical support at 1.0750.
Sterling: the pound/dollar extended the previous session’s rally, closing up 0.98% at 1.1874. On a technical level, the four-hour chart shows the pair quickly recovering from daily lows, suggesting that buying interest is picking up. The initial resistance of the exchange rate upward is at 1.1900, further resistance at 1.1985, more critical resistance at 1.2170; The initial support of the exchange rate down at 1.1573, further support at 1.1388, more critical support at 1.1275.
Yen: dollar/yen fell for a second day, but closed above the 111 level, down 0.02% at 111.19. Technically, the pair is trading in the 111.20 area and losing bullish strength. The initial resistance of the exchange rate upward is at 111.60, further resistance at 111.90, more critical resistance at 112.25; The initial support of the exchange rate down at 111.00, further support at 110.70, more critical support at 110.20.
The stock market
U.S. and European stocks: the dow Jones industrial average closed higher on Wednesday, rising more than 13% for a second straight day, as the White House and congressional leaders said they had agreed to a massive stimulus bill to combat the economic slowdown caused by the new outbreak. On Wednesday, the average of 30 stocks rose more than 2%, or 495.64 points, to 21,200.55. The s&p 500 gained 1.1% to close at 2,475.56. Wednesday marked the first time since February that the dow and the s&p 500 had closed higher on two consecutive days. Boeing Co. led the dow higher, rising 24%. Nike’s 9.2% gain also helped lift the dow. The Nasdaq composite index fell 0.5% to 7,384.30, as shares of Facebook, amazon, apple, Netflix and Google parent Alphabet fell.
European stock markets closed higher on Wednesday. The pan-european stoxx 600 index temporarily closed up more than 2.5 percent, led by oil and gas stocks, which surged more than 6 percent, and chemicals, which fell more than 0.5 percent. The European blue-chip index opened up more than 4.5 percent. Germany’s DAX closed up 130.75 points, or 1.34%, at 9,876.00. The ftse 100 closed up 232.75 points, or 4.26 percent, at 5,693.50. France’s cac-40 index closed up 189.60 points, or 4.47%, at 4432.30. Spain’s IBEX35 index closed up 246.09 points, or 3.65%, at 6,995.09. Italy’s ftse closed up 420.00 points, or 2.48 percent, at 17,332.50. The stoxx Europe 50 index closed up 71.00 points, or 2.60 percent, at 2804.55.
The bond market
The White House and senate leaders reached a deal on a new $2 trillion pandemic stimulus bill, sending long-term U.S. Treasury yields lower on Wednesday as investors welcomed the massive rescue package. The yield on the benchmark 10-year Treasury note fell 3 basis points to about 0.79 percent, while the yield on the 30-year note fell 4 basis points to 1.33 percent.
International spot gold Wednesday morning opened at $1,631.10 an ounce, touched as low as $1,596.40 and rose as high as $1,641.50, closing at $1,615.16, down $13.44, or 0.83%.
Comex gold futures for April delivery fell $27.40, or about 1.7%, to $1,633.40 an ounce after rising 6% on Tuesday.
Oil prices rose as much as 3% on Wednesday as Wall Street rallied on expectations that the U.S. senate would pass a $2 trillion 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 48 cents, or 2 percent, at $24.49 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 may futures were up 24 cents, or 0.9 percent, at $27.39 a barrel on Wednesday. The price of brent crude fell 25 percent last week.