Financial markets daily

In the currency market

EUR: The euro fell for a third straight day against the dollar, closing 0.57% lower at 1.2148. Technically, initial upside resistance stands at 1.2206, further resistance at 1.2262, key resistance at 1.2300; Initial downside support is placed at 1.2113, further support at 1.2075 and more critical support at 1.2019.

GBP: GBP/USD turned lower to close at 1.3511, down 0.42%. Technically, initial upside resistance stands at 1.3567, further resistance at 1.3628, key resistance at 1.3686; Initial downside support at 1.3448, further support at 1.3390 and more critical support at 1.3329.

JPY: The dollar rose for a fourth straight day to close at 104.23, up 0.28%. Technically, initial upside resistance stands at 104.47, further resistance at 104.71, key resistance at 105.03; Initial downside support is at 103.91, further support at 103.60 and more critical support at 103.36.

The stock market

U.S. political turmoil and a rebound in the new world’s largest epidemic weighed on Wall Street’s investment mood, with the three major U.S. stock indexes showing a weak start on Monday. The Dow Jones Industrial Average fell 265 points before hitting an intraday low of 30,832. At one point, however, the Dow was close to regaining all of its losses in the middle of the session, supported by stabilization in pharmaceutical stocks and banks. At the close, the Dow was down 89.30 points, or 0.29 percent, at 3,008.69. The S&P 500 fell 25.10 points, or 0.66 percent, to 3,799.61. The Nasdaq closed down 165.50 points, or 1.25%, at 13,036.43.

European stocks got off to a good start to 2021 as investors looked to the future after a beleaguered U.S. Congress and the prospect of more fiscal stimulus following a big Democratic victory. President-elect Joe Biden on Friday promised a massive economic stimulus package that he said would amount to “trillions of dollars.” More details will be released on Thursday, six days before his official inauguration. However, unexpected job losses in December underlined the need for further stimulus, while the continued surge in confirmed cases of Covid-19 in many parts of the world weighed on sentiment, with European stock markets closing lower across the board on Monday. The pan-European Stoxx 600 index closed down 2.76 points, or 0.67 percent, at 408.41. The auto sector led the decline, down 1.7%, while the health care sector bucked the trend and gained 0.6%. Germany’s DAX30 index closed down 112.87 points, or 0.80 percent, at 13,936.66. The FTSE 100 closed down 74.78 points, or 1.09 per cent, at 6,798.48. France’s CAC-40 index ended down 44.45 points, or 0.78%, at 5,662.43. The Euro Stoxx 50 index ended down 23.90 points, or 0.66%, at 3,621.15. Spain’s IBEX35 index closed down 50.70 points, or 0.60 percent, at 8357.00. Italy’s FTSE MIB index closed down 71.93 points, or 0.32 per cent, at 22722.01.

Commodity markets

Spot gold settled down $5.12, or 0.28 percent, at $1,843.74 an ounce, after hitting as low as $1,816.76 and as high as $1,856.78. Spot gold fell $49.42, or 2.60 percent, last week, its worst week since November.

Comex February gold futures ended up 0.8 percent at $1,850.80 an ounce.

The two major crude oil futures ended mixed on Monday. U.S. WTI crude for February delivery was nearly flat at press time, up 1 cent, or 0.02 percent, at $52.25 a barrel, continuing its highest level since February last year and up 7.66 percent for the week. Brent crude for March delivery ended down 33 cents, or 0.59 percent, at $55.66 a barrel. The two major crude oil futures have risen in nine of the past 10 weeks.

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