Financial Markets Daily

In the currency market

Euro: Eur/USD turned lower, closing down 0.30% at 1.1778. On the technical side, the initial resistance to the upward movement of the exchange rate is at 1.1823, the further resistance is at 1.1872, and the key resistance is at 1.1911. The initial support for the lower exchange rate is at 1.1735, further support is at 1.1696, and more critical support is at 1.1647.

Sterling: Fell 0.30%, or 1.3222, against the DOLLAR for the first time in five days. Technically, the initial resistance to the exchange rate upward is at 1.3287, further resistance is at 1.3362, and key resistance is at 1.3410. The initial support is at 1.3164, further support is at 1.3116, and more critical support is at 1.3041.

Yen: Dollar/jPY rose for the third day in a row to close at 105.42 yen, up 0.11%. Technically, the initial resistance to the exchange rate upward is at 105.73, further resistance is at 106.04, and the key resistance is at 106.40. Initial support for the lower exchange rate is at 105.05, further support is at 104.69, and more critical support is at 104.38.

The stock market

European stock markets closed higher on Wednesday, continuing their climb amid rising hopes for the imminent launch of a coronavirus vaccine. The Pan-European Stoxx 600 index closed up 4.14 points, or 1.10%, at 388.56. Utilities led the way with gains of 2.6 per cent, with most sectors and major stocks rising. Germany’s DAX30 index closed up 53.07 points, or 0.40%, at 13,216.18. Britain’s FTSE 100 index closed up 85.25 points, or 1.35%, at 6,382.10. France’s CAC-40 index closed up 26.24 points, or 0.48%, at 5,445.21. The Euro Stoxx 50 index closed up 26.23 points, or 0.76%, at 3,468.85. Spain’s IBEX35 index closed up 82.30 points, or 1.07 percent, at 7,793.70. Italy’s FTSE MIB index closed up 141.44 points, or 0.68%, at 20,993.02.

U.S. stocks were mixed on Wednesday, but the battered Nasdaq composite ended up 2 percent on a rebound in technology stocks as investors sought a disguised safe-haven once again by buying on dips as the outlook for an economic recovery remained challenging. The Dow Jones Industrial Average fell 23.29 points, or 0.08 percent, to 29,397.63. The S&P 500 rose 27.13 points, or 0.77%, to 3,572.66. The Nasdaq rose 232.58 points, or 2.01%, to 11,786.43.

Commodity markets

Spot gold closed at $1,864.45 an ounce, down $11.47, or 0.61 percent, after hitting an intraday high of $1,884.15 an ounce and a low of $1,855.30.

COMEX Gold futures for December delivery closed down 0.8 percent at $1,861.60 an ounce.

Brent crude briefly broke above $45 a barrel on Wednesday on expectations that a COVID-19 vaccine could boost demand, but then fell back as fears of increased cases outweighed the good news. Brent crude rose 19 cents, or 0.25 per cent, to $43.72 a barrel as of press time, after trading at an intraday high of $45.30 a barrel, the first time crude has breached the $45 mark since early September. WTI crude futures rose 5 cents, or 0.12 percent, to $41.41 a barrel.

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