Last session market review
Buoyed by signs of a slowdown in the new outbreak, U.S. stocks closed sharply higher on Wednesday and sanders’ decision to pull out of the presidential race, health care stocks surged, the dollar was little changed, spot gold was steady and the minutes from the federal reserve’s latest meeting had little impact.
On Thursday, focus on the U.S. economy, CPI, the university of Michigan consumer confidence index, fed chairman colin Powell and San Francisco fed President Alan daley, European central bank minutes and Opec +.
Fx: eur/usd 1.0857; The pound closed at $1.2382; The Australian dollar closed at 0.6225; The dollar closed at 108.81 yen; Us $1.4011; The dollar was last at 0.9717 Swiss francs.
Commodities: spot gold closed at $1, 644.39 an ounce; Comex gold ended at $1,684.30 an ounce; Spot silver settled at $14.95 an ounce; Comex silver ended at $15.205 an ounce; Brent crude closed at $32.84 a barrel; NYMEX crude settled at $25.05 a barrel.
In the currency market
The euro opened at $1.1143 in New York the last session, trading near $1.1142 after trading at session lows. From the technical point of view, the MACD red kinetic energy column significantly contracted, KDJ indicators close to the Central Line down near, indicating that the short trend has turned bearish. The initial resistance to the upward trend of the exchange rate is at 1.1176, further resistance at 1.1213, the key resistance at 1.1236; The initial support of the exchange rate down at 1.1115, further support at 1.1092, more critical support at 1.1055.
GBP/usd: open at 1.2060, trading in a tight range, close at 1.2057. From the technical point of view, MACD green kinetic energy column shrinkage, KDJ indicator low gradually out of the oversold zone, indicating a slight easing of downward pressure. The initial resistance to the upward trend of the exchange rate is 1.2090, further resistance is 1.2123, more critical resistance is 1.2146; The initial support of the exchange rate decline is 1.2035, further support is 1.2012, more critical support is 1.1979.
Usd/jpy: the session opened at 105.96 and continued its decline during the session before trading around 105.80 late in the session. From the technical point of view, MACD green kinetic energy column steady contraction, KDJ index up close to the Central Line, suggesting that the exchange rate in the near future downward kinetic energy has faded. The initial resistance of the exchange rate upward is at 106.56, further resistance at 107.22, more critical resistance at 107.68; The initial support of the exchange rate down at 105.45, further support at 104.99, more critical support at 104.33.
The stock market
On Wednesday, sen. Bernie Sanders, the 2020 presidential candidate, withdrew from the race, easing some of Wall Street’s political concerns over the economic crisis caused by a novel coronavirus and lifting stocks on hopes that the U.S. could soon be at a turning point for a new pandemic. The dow jones industrial average gained 779.71 points, or 3.4%, to close at 23,433.57. In the previous session, the dow fell 26 points, erasing a 900 point gain in early trading. The s&p 500 rose 3.4% to 2,749.98. The NASDAQ composite index rose from 2.6% to 8,090.90. After Wednesday’s rally, the dow is up 29% from its low, and the NASDAQ is down less than 10% this year.
European stocks ended lower on Wednesday as optimism about an imminent recovery from the outbreak began to fade. The pan-European Stoxx 600 closed down nearly 0.2 percent, led by a 1.4 percent fall in oil and gas, with the travel and leisure sector up 3 percent. Germany’s DAX closed down 21.58 points, or 0.21%, at 10,335.12. The FTSE 100 closed down 26.65 points, or 0.47 percent, at 5677.60. France’s CAC-40 index closed up 4.49 points, or 0.10 percent, at 4442.75. Spain’s IBEX35 index closed down 49.50 points, or 0.71 percent, at 6,952.50. Italy’s FTSE closed down 25.22 points, or 0.14 percent, at 17,386.50. Europe’s Stoxx 50 index closed down 6.82 points, or 0.24%, at 2,850.85.
The bond market
The market’s optimism has also helped push long-term Treasury yields higher. On Wednesday, the yield on the benchmark 10-year Treasury note rose 2 basis points to 0.75 per cent, while the yield on the 30-year note edged up to 1.34 per cent.
International spot gold started at $1646.50 an ounce on Wednesday morning, rising as high as $1656.20 an ounce, and dipping as low as $1640.63 an ounce, ending at $1644.39, down $2.01 or 0.12%.
COMEX June gold futures ended up 60 cents at $1,684.30 an ounce.
Algerian minister Youcef Yousfi hinted that OPEC would agree to a massive cut of nearly 10 million barrels a day at a meeting on Thursday, while oil prices rose 6 percent on Wednesday after the United States, the world’s largest crude producer, suggested it would contribute up to 1.2 million barrels a day. U.S. WTI crude for May delivery closed up $1.46, or 6.2 percent, at $25.05 a barrel. WTI crude, which closed last week at a record high of 32%, fell 54% last month and 66% in the first quarter. Brent crude for June delivery was up 97 cents, or 3 percent, at $32.84 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.