Financial markets daily

In the currency market

EUR: EUR/USD turned positive to close at 1.2097, up 0.68%. Technically, initial upside resistance stands at 1.2110, further resistance at 1.2180, key resistance at 1.2242; Initial downside support at 1.2000, further support at 1.1920 and more critical support at 1.1900.

GBP: Sterling rose against the dollar for the first time in four days, closing 0.27% higher at 1.3876. Technically, initial upside resistance stands at 1.3925, further resistance at 1.4010, key resistance at 1.4140; Initial downside support stands at 1.3800, further support at 1.3670 and more critical support at 1.3565.

JPY: The dollar fell for a fifth straight day to 107.88 yen, down 0.08 percent. Technically, initial upside resistance stands at 108.35, further resistance at 108.80, key resistance at 109.95; Initial downside support at 107.50, further support at 106.50 and more critical support at 105.77.

The stock market

U.S. stocks rebounded on Friday after concerns in the trading day that the White House may seek to raise capital gains taxes. The Dow closed up 227.78 points, or 0.67 percent, at 34043.68. The S&P 500 rose 44.52 points, or 1.08 percent, to 4179.50, setting an intraday record. The Nasdaq closed up 198.40 points, or 1.44 percent, at 14,016.81. For the week, the Dow closed down 0.5 percent, while the S&P 500 ended down just 0.1 percent amid turmoil and the Nasdaq fell 0.3 percent.

The eurozone’s dominant services sector shrugged off the effects of the new quarantine, recovering much stronger than expected from the pandemic-induced recession. Despite this, European stock markets closed mostly lower on Friday. The pan-European Stoxx 600 index closed down 0.59 points, or 0.13 percent, at 439.04, led by a 1.1 percent drop in the healthcare sector. For the week, the index is down 0.8 per cent; Germany’s DAX30 index.DAX closed down 40.90 points, or 0.27%, at 15,279.62, after losing 1.17% on the week. The FTSE 100 closed 0.85 points higher at 6,938.56, having lost 1.15 per cent on the week. France’s CAC-40 index (FR: CAC-40, -0.46%) closed down 9.34 points, or 0.15 percent, at 6,257.94, after losing 0.46 percent on the week. The Euro Stoxx 50 index ended down 1.35 points, or 0.03%, at 4,013.45. Spain’s IBEX35 index closed down 36.80 points, or 0.43 percent, at 8,620.00. In Italy, the FTSE MIB index closed down 12.32 points, or 0.05%, at 24,386.09.

Commodity markets

Spot gold gave up its initial gains on a weaker dollar and low Treasury yields to settle at $1,777.20 an ounce, down $6.74, or 0.38 per cent, from a high of $1,795.96 and a low of $1,779.87. Spot gold ended the week up 69 cents, or 0.04 percent.

COMEX gold futures for June delivery ended down 0.2 percent at $1,777.80 an ounce, down about 0.1 percent for the week.

The U.S. economy got off to a strong start in the second quarter as a brighter outlook and stimulus measures helped boost demand as restrictions eased and vaccines rolled out, extending gains in the previous session of crude oil futures on Friday. U.S. WTI crude for June delivery settled up 71 cents, or 1.15 percent, at $62.14 a barrel at press time. Brent June crude also ended up 71 cents, or 1.08 percent, at $66.11 a barrel. This week, the United States oil accumulatively closed down 1.60%, cloth oil accumulatively closed down 0.99%.

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