Financial markets daily

Last session market review

A late plunge in oil prices sent U.S. stocks lower on Tuesday, but there were signs the outbreak was abating as the dollar continued to fall back from the 100-mark and spot gold fell back from a near one-month high earlier in the session to the 1650 mark.

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 1.0891; The pound closed at $1.2330; The Australian dollar closed at 0.6167; The dollar closed at 108.70 yen; Us $1.3989; The dollar was last at 0.9696 Swiss francs.

Commodities: spot gold closed at $1, 497.96 an ounce; Comex gold ended at $1,484.60 an ounce; Spot silver settled at $14.98 an ounce; Comex silver ended at $15.480 an ounce; Brent crude closed at $32.16 a barrel; NYMEX crude closed at $23.63 a barrel.

In the currency market

Euro: the euro/dollar ended its sixth run of negative momentum, rising for the first time in seven sessions to 1.0891, up 0.93%. On the technical plane, the pivot point of the currency pair is at 1.0867, the initial resistance to the exchange rate rising is at 1.0949, the further resistance is at 1.1008, and the key resistance is at 1.1091. The initial support of the exchange rate down at 1.0808, further support at 1.0725, more critical support at 1.0667.

Sterling: after two days of losses, the pound/dollar turned higher to close at 1.2330, up 0.83%. On the technical level, the pivot point of the currency pair is at 1.2292, the initial resistance to the upward movement of the exchange rate is at 1.2419, the further resistance is at 1.2511, and the key resistance is at 1.2639. The initial support of the exchange rate down at 1.2200, further support at 1.2072, more critical support at 1.2180.

Yen: the dollar fell for the first time in four sessions, closing 0.46% lower at 108.70. On the technical level, the pivot point of the currency pair is 108.89, the initial resistance to the upward trend of the exchange rate is 109.11, the further resistance is 109.49, and the key resistance is 109.71. The initial support of the exchange rate down at 108.51, further support at 108.29, more critical support at 107.90.

The stock market

U.S. and European stocks: after Wall Street took stock of the latest news on the outbreak, U.S. stocks pared gains Tuesday and ended lower. The dow Jones industrial average closed down 26.13 points, or 0.1%, at 22,653.86: the average of 30 stocks rose as much as 937.25 points, or 4.1%. The day before, the dow had its third-biggest point gain on record; The s&p 500 closed down 0.2% at 2,659.41, up more than 3%. The nasdaq composite index fell 0.3% to 7,887.26 after rising 3%.

The number of new crown infections and deaths per day has started to decline, sending European stock markets higher on Tuesday as investors anticipated a turning point in the region’s new crown outbreak soon. The pan-European Stoxx 600 closed up 1.7 percent, led by a 6.2 percent surge in travel and leisure shares, with major markets closing higher. Germany’s DAX closed up 284.17 points, or 2.82%, at 10356.67. Britain’s FTSE 100 closed up 162.15 points, or 2.93%, at 5,704.25. France’s CAC-40 index closed up 92.14 points, or 2.12 percent, at 4,438.27. Spain’s IBEX35 index closed up 165.20 points, or 2.41 percent, at 7,009.50. Italy’s FTSE closed up 522.85 points, or 3.10 percent, at 17414.50. The stoxx Europe 50 index closed up 61.08 points, or 2.18%, at 2857.05.

The bond market

Investors’ optimism helped push Treasury yields higher on Tuesday. The yield on the benchmark 10-year Treasury note rose 5 basis points to 0.72 per cent, while the yield on the 30-year Treasury note rose 1.33 per cent.

Commodity markets

International spot gold started at $1,660.23 an ounce on Tuesday morning in Asia, rising as high as $1,672.40 an ounce, and dipping as low as $1,641.60 an ounce, ending at $1,646.40, down $14.12, or 0.85%.

COMEX gold futures for June delivery closed down 0.6 percent at $1,683.70 an ounce after briefly breaching the $1,700 an ounce barrier.

Continued concerns among traders about whether any current production curbs will be enough to save the market from potential losses of 20 million to 30 million barrels a day of demand led to a decline in oil prices on Tuesday, erasing early gains. U.S. WTI crude for May delivery closed down $2.45, or 9.4 percent, at $23.63 a barrel after rising as high as $27.24. WTI crude, which closed last week up a record 32%, fell 54% last month and 66% in the first quarter. Brent crude for June delivery fell $1.18, or 3.6 percent, to $32.16 a barrel after earlier touching $34.17. 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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