Financial markets daily

Last session market review

More than 360,000 cases have been confirmed in the U.S., but New York, the worst-hit state, has fewer new deaths than on Friday, sending stocks up 1,600 points Monday. The pound fell as prime minister Boris Johnson was transferred to intensive care. Spot gold surged more than $40 to around $1,660.

The rest of the trading day will focus on the global situation of covid-19 and the possible stimulus measures taken by national authorities.

Fx: eur/usd closed at 1.0791; The pound closed at 1.2228; The Australian dollar closed at 0.6083; Dollar/yen closed at 109.20; Us $1.4110; The dollar was last at 0.9785 Swiss francs.

Commodities: spot gold closed at $1,660.52 an ounce; Comex gold ended at $1,693.9 an ounce; Spot silver settled at $14.99 an ounce; Comex silver ended at $15.169 an ounce; Brent crude closed at $33.05 a barrel; NYMEX crude closed at $26.08 a barrel.

In the currency market

Euro: the euro fell for a sixth day, or 0.16 percent, to 1.0791. On the technical plane, the pivot point of the currency pair is at 1.0799, the initial resistance of the exchange rate upward is at 1.0829, the further resistance is at 1.0865, and the key resistance is at 1.0896. The initial support of the exchange rate down at 1.0762, further support at 1.0732, more critical support at 1.0695.

Sterling: the pound/dollar fell for the second day in a row to close at 1.2228, down 0.27%. On the technical plane, the pivot point of the currency pair is 1.2255, the initial resistance of the exchange rate upward is 1.2299, the further resistance is 1.2371, and the key resistance is 1.2416. The initial support of the exchange rate down at 1.2183, further support at 1.2139, more critical support at 1.2067.

Yen: dollar/yen extended gains, closing 0.69% higher at 109.20. On the technical level, the pivot point of the currency pair is 108.97, the initial resistance to the exchange rate rise is 109.59, the further resistance is 109.98, and the key resistance is 110.60. The initial support for the fall in the exchange rate is at 108.58, further support at 107.96, more critical support at 107.57.

The stock market

U.S. and European stocks rebounded from last week’s losses on Monday on news of a drop in the number of new novel coronavirus infections in the United States. The dow Jones industrial average closed up 1,627.46 points, or more than 7%, at 22,679.99, up more than 24% from its intraday low on March 23. The s&p 500 rose 6.95% to 2,663.68, up more than 21% from its intraday low on March 23. The nasdaq composite index rose 7.3% to 7,913.24. In the final minutes of trading, major indexes rebounded to their highs of the day, with the dow up more than 1,700 points at one point.

European stocks ended sharply higher on Monday as infection rates of novel coronavirus declined in most of Europe. The pan-European Stoxx 600 index closed up temporarily 3.75 percent, with all sectors and major markets closing higher, led by a 9 percent rise in autos. Germany’s DAX closed up 546.73 points, or 5.74 percent, at 10072.50. The FTSE 100 closed up 168.60 points, or 3.11 percent, at 5,584.10. The French CAC-40 index closed up 191.56 points, or 4.61 percent, at 4,346.14. Spain’s IBEX35 index closed up 281.05 points, or 4.27 percent, at 6,862.65. Italy’s FTSE closed up 637.65 points, or 3.89 percent, at 17022.00. The Stoxx Europe 50 index closed up 131.36 points, or 4.93%, at 2,794.35.

The bond market

The yield on the benchmark 30-year us Treasury note fell to a record low on Wednesday as global investors sought safer assets, threatening to push the yield below 2 percent for the first time ever. The yield on the 30-year Treasury note fell to 2.015 percent, well below the record low of 2.0889 percent set in the days after the Brexit vote in June 2016. The yield curves on the us two-year and 10-year Treasury notes are inverted for the first time since 2007, suggesting the world’s largest economy may be heading for a recession.

Commodity markets

International spot gold Monday morning trading at $1,616.72 / oz, rose as high as $1,668.70 / oz, and touched as low as $1,607.90 / oz to close at $1,660.52 / oz, up $43.11 or 2.67%.

COMEX gold for June delivery ended up $48.2 an ounce, or 2.93 percent, at $1693.9 after briefly breaching the $1,700 mark.

Oil prices closed lower on Monday after Opec’s decision to postpone a production cut meeting sparked fears of further escalation of tensions with Russia and possible obstacles to production cuts. U.S. WTI crude for May delivery closed down $2.26, or 8%, at $26.08 a barrel. WTI crude finished last week up a record 32 percent after falling 54 percent last month and 66 percent in the first quarter. Brent crude for June delivery fell $1.06, or 3.1 percent, to $33.05 a barrel. The price of Brent crude rose 37 percent last week after falling 48 percent last month and 61 percent in the first quarter.

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