Financial Markets Daily

In the currency market

Euro: EurUSD turned higher, up 0.28%, to close at 1.2213. On the technical front, the initial resistance to the upward movement of the exchange rate is at 1.2248, further resistance is at 1.2285, and key resistance is at 1.2319. The initial support is at 1.2178, further support is at 1.2143, and more critical support is at 1.2107.

Sterling: The pound fell against the DOLLAR for the first time in three days, closing down 0.78 per cent at 1.3454. Technically, the initial resistance is at 1.3539, further resistance is at 1.3631, and the key resistance is at 1.3686. The initial support is at 1.3391, further support is at 1.3336, and more critical support is at 1.3244.

Yen: DOLLAR/jPY rose for the second day in a row, closing at 103.78, up 0.13%. Technically, the initial resistance to the exchange rate upward is at 103.98, further resistance is at 104.19, and the key resistance is at 104.48. Initial support for the lower exchange rate is at 103.48, further support is at 103.19, and more critical support is at 102.99.

The stock market

On Sunday, US President Donald Trump signed into law a $2.3tn spending bill that includes a $900bn COVID-19 rescue package that continues to provide relief to domestic businesses and individuals; And a $1.4 trillion spending bill to avert a federal government shutdown. After the holiday, all three indexes hit record highs on Monday, with the Dow up more than 300 points in the early stages. The Dow closed up 204.10 points, or 0.68%, at 30403.97. The S&P 500 index closed up 32.30 points, or 0.87%, at 3735.36. The Nasdaq closed up 94.70 points, or 0.74%, at 12899.42.

European markets have rebounded strongly at the start of the last trading week of 2020 as traders reacted to developments in the UK leaving the EU after US President Donald Trump signed the $900bn COVID-19 rescue bill. Germany’s DAX30 index closed up 203.06 points, or 1.49%, at 13,790.29 on Monday. The Cac-40 index in France closed up 66.37 points, or 1.20%, at 5,588.38. In Europe, the Stoxx 50 index closed up 35.29 points, or 1.00%, at 3,574.55. Spain’s IBEX35 index closed up 46.50 points, or 0.57%, at 8,158.00. Italy’s FTSE MIB index closed up 158.34 points, or 0.72%, at 22,288.52.

Commodity markets

Spot gold closed at $1,873.54 an ounce, down $5.71, or 0.30 percent, after touching an intraday low of $1,868.96 an ounce and an intraday high of $1,900.19.

February gold futures on COMEX fell 0.1 percent to $1,880.40 an ounce.

News of a novel Coronavirus mutation in the UK earlier this week triggered a sell-off in crude oil and other risky assets, while the prospect of an increase in production by 2021 in major oil producing countries also weighed on oil prices, with two major futures markets in reverse on Monday (Dec 28). At press time, U.S. WTI crude for February delivery was down 61 cents, or 1.26 percent, at $47.62 a barrel after hitting an intraday high of $48.96. Brent crude for March delivery ended down 43 cents, or 0.84 percent, at $50.86 a barrel.

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