Financial Markets Daily

In the currency market

Euro: The euro fell against the dollar for a second day, closing down 0.08% at 1.1841, after gaining 0.26% last week. Technically, the initial resistance to the upward movement of the exchange rate is at 1.1897, the further resistance is at 1.1955 and the key resistance is at 1.2004. Initial support for the lower exchange rate is at 1.1790, further support is at 1.1741, and more critical support is at 1.1683.

Sterling: GBP/USD rose for the second day in a row, closing 0.35% higher at 1.3324, after gaining 0.74% last week. Technically, the initial resistance is at 1.3393, further resistance is at 1.3462, and the key resistance is at 1.3527. Initial support for the lower exchange rate is at 1.3258, further support is at 1.3193 and more critical support is at 1.3123.

Yen: DOLLAR/jPY rose for a second day, up 0.65% at 104.53, after falling 0.74% last week. Technically, the initial resistance to the exchange rate upward is at 104.87, further resistance is at 105.23, and the key resistance is at 105.83. Initial support for the lower exchange rate is at 103.91, further support is at 103.31, and more critical support is at 102.95.

The stock market

London (Marketwatch) – European stocks closed mixed on Monday amid rising hopes that an effective coVID-19 vaccine will soon begin rolling out. The Pan-European Stoxx 600 index closed 0.77 points, or 0.20 percent, lower at 388.84. Oil and gas stocks rose 3.2%, while telecommunications stocks fell 1%. Germany’s DAX30 index closed down 10.28 points, or 0.08%, at 13,126.97. Britain’s FTSE 100 index closed down 17.61 points, or 0.28%, at 6,333.84. France’s CAC-40 index closed down 3.74 points, or 0.07%, at 5,492.15. In Europe, the Stoxx 50 index closed down 3.15 points, or 0.09 percent, at 3,464.45. Spain’s IBEX35 index closed up 2.10 points, or 0.03%, at 79,80.00. Italy’s FTSE MIB index closed down 5.17 points, or 0.02%, at 21,701.79.

Following positive announcements over the past two weeks from Moderna, Pfizer and BioNTech, Astrazeneca said in a statement on Monday that the coVID-19 vaccine, which it has partnered with Oxford University, is likely to be around 90 percent effective and will have no serious side effects. Optimism about the coVID-19 vaccine sent U.S. stocks up more than 400 points in intraday trading. At the close, the Dow Jones Industrial Average was up 327.80 points, or 1.12%, at 29591.27. The S&P 500 ended up 20.10 points, or 0.56%, at 3,577.60. The Nasdaq Composite Index closed up 25.70 points, or 0.22%, at 11,880.63. The Dow is up 10% for the month and the S&P 500 is up 8%.

Commodity markets

Spot gold closed at $1,837.71 an ounce in late U.S. trading, down $33.13, or 1.77 percent, after hitting an intraday high of $1,876.01 an ounce after falling as low as $1,830.80 an ounce, its lowest level since July 21. Last week, spot gold fell $18.21, or 0.96 percent.

COMEX gold for December delivery ended down 1.8 percent at $1, 837.80 an ounce.

Data from the American Petroleum Institute showed a sharp drop in crude inventories last week, and oil prices remained near current levels ahead of Wednesday’s Opec meeting to assess the effectiveness of the deal: U.S. WTI crude for September closed flat at $42.89 on Tuesday. Brent crude for October delivery rose 9 cents, or 0.2 percent, to $45.46 a barrel.

Leave a Reply

Your email address will not be published. Required fields are marked *