Financial markets daily

In the currency market

EUR: EUR/USD turned lower to close at 1.2105, down 0.19%. Technically, initial upside resistance stands at 1.2149, further resistance at 1.2194, key resistance at 1.2230; Initial downside support at 1.2068, further support at 1.2032 and more critical support at 1.1987.

GBP: GBP gained for a second day in a row against the dollar, closing 0.27% higher at 1.3659. Technically, initial upside resistance stands at 1.3704, further resistance at 1.3754, key resistance at 1.3795; Initial downside support at 1.3612, further support at 1.3571 and more critical support at 1.3520.

JPY: USD/JPY reversed course to close 0.34% lower at 103.54. Technically, initial upside resistance stands at 103.83, further resistance at 104.12, key resistance at 104.31; Initial downside support at 103.34, further support at 103.15 and more critical support at 102.85.

The stock market

Stocks bounced back from their inauguration day highs on Wednesday, with the S&P 500 and Nasdaq both breaking through peaks ahead of Biden’s inauguration. After Joe Biden and Harris were sworn in as president and vice president respectively, U.S. stocks stayed high, with the three major indexes leading the Nasdaq rally. The Dow Jones Industrial Average rose more than 300 points late in the day, led by a sharp rise in Netflix shares. At the close of trading, the Dow gained 257.90 points, or 0.83%, to 31,188.38, a new closing high. The S&P 500 rose 52.90 points, or 1.39 percent, also to a record close of 3851.85. The Nasdaq closed up 260.10 points, or 1.97 percent, at 13,457.25.

Joe Biden was sworn in as the 46th president of the United States at noon local time on Wednesday. Before that, European stock markets closed higher across the board. The pan-European Stoxx 600 index closed up 2.92 points, or 0.72 percent, at 410.84. Among them, the auto sector led the rise, up 2.7%; Germany’s DAX30 index closed up 106.31 points, or 0.77%, at 13,921.37. Britain’s FTSE 100 index closed up 27.44 points, or 0.41%, at 6,740.39. France’s CAC-40 index (FR: CAC-40) closed up 29.83 points, or 0.53 percent, at 5,628.44. The Euro Stoxx 50 index closed up 28.93 points, or 0.80%, at 3,624.35. Spain’s IBEX35 index closed up 5.00 points, or 0.06 percent, at 8,204.00. Italy’s FTSE MIB index closed up 209.06 points, or 0.93 per cent, at 22,650.78.

Commodity markets

Spot gold settled at $1,871.75 an ounce, up $31.62, or 1.72 percent, from an intraday high of $1,871.65 and a low of $1,832.39.

COMEX gold futures for February delivery ended up 1.2 percent at $1,862.90 an ounce.

Joe Biden was sworn in as the 46th president of the United States at noon local time on Wednesday. The Biden administration is expected to provide substantial fiscal spending to boost fuel demand and thus reduce inventories. The focus will also be on the progress of the new crown vaccine, amid expectations that the U.S. economic growth outlook will improve and demand energy will rise. Two major crude oil futures extended the previous session’s gains. U.S. WTI crude for March delivery settled up 26 cents, or 0.49 percent, at $53.24 a barrel at press time. Brent crude for March delivery ended up 18 cents, or 0.32 percent, at $56.08 a barrel.

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