Last session market review
As covid-19 continues to spread around the world, risk sentiment in the market is fragile, with major U.S. stock indexes falling more than 4 percent last day (April 1), with the dow plunging more than 900 points, the dollar remaining firm, and spot gold closing slightly higher, halting gains near the 1600 mark.
On Thursday, the focus will be on U.S. jobless claims, trade and factory orders, and euro zone PPI data.
Fx: eur/usd 1.0963; The pound closed at $1.2374; The Australian dollar closed at 0.6070; Dollar/yen closed at 107.15; Us $1.4188; The dollar was last at 0.9654 Swiss francs.
Commodities: spot gold closed at $1, 589.85 an ounce; Comex gold ended at $1,591.40 an ounce; Spot silver settled at $13.95 an ounce; Comex silver ended at $13.984 an ounce; Brent crude settled at $24.94 a barrel; NYMEX crude settled at $20.31 a barrel.
In the currency market
Euro: the euro fell for a third day, or 0.62 percent, to 1.0963. On the technical level, the pivot point of the currency pair is at 1.0968, the initial resistance to the exchange rate rise is at 1.1033, the further resistance is at 1.1104, and the key resistance is at 1.1169. The initial support of the exchange rate down at 1.0896, further support at 1.0832, more critical support at 1.0760.
Sterling: the pound/dollar was choppy in recent days, falling to 1.2374, or 0.43%, after closing higher the previous day. On the technical plane, the pivot point of the currency pair is 1.2380, the initial resistance to the upward trend of the exchange rate is 1.2428, further resistance is 1.2487, and the more critical resistance is 1.2536. The initial support of the exchange rate down at 1.2321, further support at 1.2272, more critical support at 1.2213.
Yen: dollar/yen fell for the seventh day in a row, briefly falling below the 107 level to close 0.35% lower at 107.15. On the technical plane, the pivot point of the currency pair is 107.34, the initial resistance to the exchange rate rise is 107.76, the further resistance is 108.36, and the more critical resistance is 108.78. The initial support of the exchange rate down at 106.74, further support at 106.32, more critical support at 105.73.
The stock market
U.S. and European stocks: U.S. stocks fell on Wednesday on fears that a novel coronavirus could stall the economy for longer than expected. The dow Jones industrial average closed down 973.65 points, or 4.4%, at 20,943.51. The s&p 500 fell 4.4% to 2,470.50; The NASDAQ composite index closed at 7,360.58. Major indexes hit session lows in the final minutes of trading, with the dow down more than 1,100 points at one point.
Global market sentiment continued to take a beating amid the outbreak of novel coronavirus. European stocks fell on Wednesday, with the pan-european stoxx 600 closing down 3%. Travel and leisure stocks led the decline, falling 6.3%. Bank shares fell 5.8 per cent after the bank of England, under pressure from the bank of England, said it would scrap its dividend by 2020. Germany’s DAX closed down 396.34 points, or 3.99%, at 9,539.50. Britain’s ftse 100 closed down 211.71 points, or 3.73 per cent, at 5460.25. France’s cac-40 index closed down 188.87 points, or 4.30 percent, at 4207.24. Spain’s IBEX35 index closed down 198.40 points, or 2.92 percent, at 6,587.00. Italy’s ftse closed down 493.94 points, or 2.90 per cent, at 16,557.00. Europe’s stoxx 50 index closed down 100.35 points, or 3.60 percent, at 2686.55.
The bond market
In the U.S. bond market, long-term Treasury yields fell Wednesday as investors continued to focus on the human and economic damage caused by the coronavirus. The yield on the benchmark 10-year Treasury note fell 7 basis points to 0.61 percent, while the yield on the 30-year note fell 1.23 percent.
International spot gold started at $1574.43 an ounce in early trading on Wednesday, rising as high as $1599.60 an ounce and dipping as low as $1566.54 to close at $1589.85, up $13.49, or 0.86%.
COMEX gold futures for June ended down 0.3 percent at $1,591.40 an ounce, the fourth straight day of losses.
A new outbreak continues to hit demand for crude oil, leading oil producers failed to agree on a joint plan to cut output, and the price war between Russia and Russia continues. In the above context, the international oil market is under the dual pressure of supply and demand, leading to the us oil prices on Wednesday (April 1) fell. U.S. WTI crude for April delivery fell 17 cents, or 0.8 percent, to $20.31 a barrel after falling as low as $19.93. U.S. WTI crude fell 4.1% last week, followed by a 54% drop in March and a 66% drop in the first quarter. Brent may futures fell $1.41, or 5.3 percent, to $24.94 a barrel. Brent crude fell 7.6% last week, after falling 48% last month and 61% in the first quarter. Both us WTI and Brent crude recorded their sharpest declines on record, both for the month and the first quarter.