Last session market review
Ahead of the start of the earnings season on Wall Street, the mood was cautious as the economic shock of the outbreak sparked a flight to safety and U.S. stocks fell, the dollar index.dxy edged lower in light trading, with gold in particular doing well, rising nearly $30 to around $1,723, its highest level in more than seven years.
This session focuses on the IMF’s latest economic outlook report with the United States earnings.
Fx: eur/usd 1.0912; The pound closed at 1.2512; The Australian dollar closed at 0.6377; The dollar closed at 107.75 yen; Us $1.3899; The dollar was last at 0.9670 Swiss francs.
Commodities: spot gold closed at $1,712.66 an ounce; Comex gold ended at $1,771.90 an ounce; Spot silver settled at $15.36 an ounce; Comex silver ended at $15.537 an ounce; Brent crude closed at $32.01 a barrel; NYMEX crude closed at $22.41 a barrel.
In the currency market
Euro: the euro/dollar reversed losses to close at 1.0912, down 0.21 percent. On the technical plane, the pivot point of the currency pair is at 1.0923, the initial resistance to the exchange rate rise is at 1.0953, the further resistance is at 1.0998, and the key resistance is at 1.1028. The initial support of the exchange rate down at 1.0878, further support at 1.0848, more critical support at 1.0804.
Sterling: the pound/dollar turned higher to close at 1.2512, up 0.48%. On the technical level, the pivot point of the currency pair is 1.2496, the initial resistance to the upward movement of the exchange rate is 1.2541, the further resistance is 1.2580, and the key resistance is 1.2625. The initial support of the exchange rate down at 1.2458, further support at 1.2412, more critical support at 1.2374.
Yen: dollar/yen extended its decline to close at 107.75, down 0.63%. On the technical level, the pivot point of the currency pair is 107.93, the initial resistance to the rise of the exchange rate is 108.36, the further resistance is 108.95, and the key resistance is 109.38. The initial support of the falling exchange rate is at 107.33, further support at 106.90, more critical support at 106.31.
The stock market
U.S. and European stocks: as investors continue to assess the outlook for a new pandemic as they prepare for the start of the earnings season, U.S. stocks ended lower Monday: the dow Jones industrial average ended down 328.60 points, or 1.4%, at 23,390.77. The s&p 500 fell 1% to 2,761.63. Last week, stocks had their biggest weekly rally ever: the dow was up 12.7% and the s&p 500 up 12.1%, its biggest weekly gain since 1974. The dow and the s&p 500 are down 18.5% and 15.2%, respectively, this year, while the nasdaq is down more than 9% in 2020.
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 per cent for the first time ever. The yield on the 30-year Treasury note fell to 2.015 per cent, well below the record low of 2.0889 per cent 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 recession.
International spot gold Monday morning trading at $1681.99 / oz, rose as high as $1722.60 / oz, and touched as low as $1674.02 / oz to close at $1712.66 / oz, up $23.76 or 1.41%.
COMEX gold futures rose 1.1 percent to $1,771.90 an ounce, the highest since October 2012, after closing above $1,772 to hit a more than seven-year high.
Oil prices closed higher on Monday after market participants acknowledged last week’s historic agreement among the world’s oil producers to cut output but questioned its effectiveness. Brent crude for June delivery rose 26 cents, or 1.7 percent, to $32.01 a barrel. Brent crude fell 48 percent last month and 61 percent in the first quarter. U.S. WTI crude for may settled down 35 cents, or 1.54 percent, at $22.41 a barrel.