Financial Markets Daily

In the currency market

Euro: Eur/USD turned higher, closing 0.28% higher at 1.2250. Technically, the initial resistance to the exchange rate upward is at 1.2296, further resistance is at 1.2344, and key resistance is at 1.2379. Initial support for the lower exchange rate is at 1.2212, further support is at 1.2178, and more critical support is at 1.2129.

Sterling: Fell against the DOLLAR for the first time in four days, closing down 0.71 per cent at 1.3562. Technically, the initial resistance is at 1.3664, further resistance is at 1.3765, and the key resistance is at 1.3826. The initial support for the lower exchange rate is at 1.3502, further support is at 1.3441, and more critical support is at 1.3340.

Yen: Usd/JPY turned lower, closing down 0.13% at 103.14. Technically, the initial resistance to the exchange rate upward is at 103.37, further resistance is at 103.65, and the key resistance is at 103.98. Initial support for the lower exchange rate is at 103.77, further support is at 102.43, and more critical support is at 102.16.

The stock market

The Dow Jones industrial Average closed down 382.60 points, or 1.25%, at 30223.89. The S&P 500 closed down 55.40 points, or 1.48%, at 3,700.65. The Nasdaq closed down 189.80 points, or 1.47%, at 12,698.45. The Dow and S&P 500 posted their biggest one-day falls since October 28, while the Nasdaq posted its worst one-day performance since December 9.

European stock markets rose on Monday in the first trading day of the New Year, despite continuing concerns about a rising number of COVID-19 cases worldwide. Germany’s DAX30 index closed up 7.96 points, or 0.06%, at 13,726.74. The FTSE 100 index closed up 111.36 points, or 1.72%, at 6,571.88. The Cac-40 index in France closed up 37.55 points, or 0.68%, at 5,588.96. In Europe, the Stoxx 50 index closed down 9.64 points, or 0.27 percent, at 3,561.95. Spain’s IBEX35 index closed up 25.50 points, or 0.32%, at 8,099.20. Italy’s FTSE MIB index closed up 82.97 points, or 0.37%, at 22,315.87.

Commodity markets

Spot gold closed at $1,942.75 an ounce, up $44.47, or 2.34 percent, after touching an intraday low of $1,904.31 an ounce, its highest level since November 9 last year. Last week, spot gold rose $18.61, or 0.99 percent.

Gold futures for February delivery on the COMEX rose 2.7 percent, the biggest one-day gain since April, to close at $1,946.60 an ounce.

Despite the optimism sparked by successive COVID-19 vaccines, oil demand will not return to pre-outbreak levels of about 100m barrels a day. Sources said Opec still lacked consensus on February production, with most members reluctant to boost output, and both major crude futures gave up most of their day’s gains on Monday after hitting more than 10-month highs. U.S. WTI crude for February delivery ended down 90 cents, or 1.85 percent, at $47.62 a barrel at press time. Brent crude for March delivery ended down 71 cents, or 1.37 percent, at $51.09 a barrel.

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