Last session market review
Last day (March 31) market sentiment is fragile, the three major U.S. stock indexes closed down, the dow jones industrial average recorded its biggest quarterly decline since 1987, the dollar rally back to barely stay around the 99 levels, spot gold at one point fell $50 to around $1,571, but recorded its sixth consecutive quarterly gain. Crude oil prices were mixed, but both this month and this quarter recorded their biggest declines on record.
On Wednesday, the focus will be on the U.S. ADP, ISM manufacturing PMI, eurozone PMI and the unemployment rate, as well as China’s caixin manufacturing PMI.
Fx: Eur/usd closed at 1.1031; The pound closed at $1.2427; The Australian dollar closed at 0.6131; The dollar closed at 107.53 yen; Us $1.4059; The dollar was last at 0.9607 Swiss francs.
Commodities: spot gold closed at $1, 576.36 an ounce; Comex gold ended at $1,596.60 an ounce; Spot silver settled at $13.96 an ounce; Comex silver ended at $14.156 an ounce; Brent crude closed at $26.37 a barrel; NYMEX crude closed at $20.48 a barrel.
In the currency market
Euro: the euro fell for a second day, or 0.14%, to 1.1031. On the technical level, the pivot point of the currency pair is 1.1004, the initial resistance to the exchange rate rise is 1.10813, the further resistance is 1.1130, and the key resistance is 1.1207. The initial support of the exchange rate down at 1.0955, further support at 1.0878, more critical support at 1.0830.
Sterling: after closing down the previous day, sterling/dollar rose to 1.2427, up 0.12%. On the technical plane, the pivot point of the currency pair is 1.2381, the initial resistance to the upward trend of the exchange rate is 1.2504, further resistance is 1.2595, and the more critical resistance is 1.2717. The initial support of the exchange rate down at 1.2290, further support at 1.2168, more critical support at 1.2077.
Yen: USD/jpy fell for the sixth day in a row, staying below the 108 level, closing 0.19% lower at 107.53. On the technical plane, the pivot point of the currency pair is 107.90, the initial resistance to the upside of the exchange rate is 108.34, the further resistance is 109.16, and the more critical resistance is 109.60. The initial support of the exchange rate down at 107.08, further support at 106.64, more critical support at 105.82.
The stock market
U.S. and European stocks rose Tuesday after some positive manufacturing data from China. But European stocks had their worst quarter since 2002 because of the new crisis and fears that the region could soon slip into recession. The pan-European Stoxx 600 closed up 1.5 percent, giving up early gains, with travel and leisure shares up 4.9 percent and Banks down 0.1 percent. Last quarter, the index had its worst three-month performance since 2002, falling 23.1 percent, its worst quarter ever. Germany’s DAX closed up 126.03 points, or 1.28%, at 9,942.00. Britain’s FTSE 100 closed up 102.66 points, or 1.85%, at 5,666.40 on March 31. The French CAC-40 index ended March 31 up 17.62 points, or 0.40%, at 4396.12. Spain’s IBEX35 index closed March 31 up 218.45 points, or 3.28%, at 6,878.35. Italy’s FTSE closed up 242.09 points, or 1.43%, at 17114.50. The euro Stoxx 50 index ended the day up 22.93 points, or 0.83%, at 2,788.55.
Us stocks fell on Tuesday, the last day of the first quarter of the year, ending a historic period of market volatility triggered by a new outbreak. The dow Jones industrial average closed down 410.32 points, or 1.8%, at 21,917.16. The s&p 500 fell 1.6% to 2,584.59. The NASDAQ composite index fell nearly 1% to 7,700.10.
The bond market
Us Treasury yields rose on Tuesday, March 31, at the end of one of the most volatile quarters in recent years, as a new outbreak spread. The yield on the 10-year Treasury note edged up to 0.68 percent, while the yield on the 30-year note rose to 1.34 percent.
International spot gold started at $1,621.60 an ounce in early trading Tuesday, rising as high as $1,623.18 an ounce, and dipping as low as $1,571.94 an ounce, ending at $1,576.36, down $45.35, or 2.8%.
COMEX gold futures for June ended down $46.60, or 2.8 percent, at $1,596.60 an ounce, the lowest close in more than a week, after rising 1.6 percent in March.
Oil prices rose on Tuesday on hopes that the kremlin and Washington might be able to strike a New Deal to replace the lack of consensus at a meeting of Opec and its Allies. U.S. WTI crude for April delivery closed up 39 cents, or 1.9 percent, at $20.48 a barrel. Us WTI crude fell 4.1 percent last week, is down 54 percent this month and 66 percent in the first quarter. Brent may futures were down 7 cents, or 0.3 percent, at $26.37 a barrel. Brent crude fell 7.6 percent last week, 48 percent this month and 61 percent in the first quarter. Both us WTI and brent crude recorded their sharpest declines on record for the month and the first quarter.