Last session market review
Risk appetite returned to the market on April 14, with Wall Street stocks closing higher on hopes that the U.S. blockade would be eased over earnings concerns, while the dollar index fell to a two-week low after falling below 99 and spot gold briefly breached $1,740, its highest in seven and a half years.
On Wednesday, the focus will be on data such as U.S. retail sales, the bank of Canada’s interest rate decision, a videoconference of G20 finance ministers and central bankers, and the federal reserve’s beige book on economic conditions.
Fx: euro/dollar at 1.0978; The pound closed at 1.2621; The Australian dollar closed at 0.6439; Dollar/yen closed at 107.20; Us $1.3877; The dollar closed at 0.9599 Swiss francs.
Commodities: spot gold closed at $1,726.48 an ounce; Comex gold ended at $1,768.90 an ounce; Spot silver settled at $15.76 an ounce; Comex silver ended at $16.130 an ounce; Brent crude settled at $29.60 a barrel; NYMEX crude closed at $20.11 a barrel.
In the currency market
Euro: the euro/dollar turned higher, gaining 0.6% to 1.0978. On the technical level, the pivot point of the currency pair is at 1.0956, the initial resistance to the upward movement of the exchange rate is at 1.1009, the further resistance is at 1.1040, and the key resistance is at 1.1093. The initial support of the exchange rate down at 1.0926, further support at 1.0873, more critical support at 1.0843.
Sterling: the pound/dollar rose for a second day, closing at 1.2621, up 0.87%. On the technical level, the pivot point of the currency pair is 1.2590, the initial resistance to the upward trend of the exchange rate is 1.2678, further resistance is 1.2736, and the key resistance is 1.2824. The initial support of the exchange rate down at 1.2532, further support at 1.2444, more critical support at 1.2386.
Yen: dollar/yen extended its decline to close at 107.20, down 0.51%. On the technical level, the pivot point of the currency pair is 107.32, the initial resistance to the upward trend of the exchange rate is 107.65, the further resistance is 108.09, and the key resistance is 108.42. The initial support of the falling exchange rate is at 106.88, further support at 106.54, more critical support at 106.10.
The stock market
U.S. and European stocks rebounded sharply from last month’s lows Tuesday as investors grew more optimistic about the prospect of a new outbreak. The dow jones industrial average rose 558.99 points, or 2.4%, to 23,949.76. The s&p 500 gained 3.1% to 2,846.06 as technology stocks, consumer discretionary and consumer staples rose 4%. The NASDAQ composite index posted its first four-day winning streak since early February, rising nearly 4% to 8,515.74, led by Amazon, which hit a record high. In the previous session, U.S. stocks fell sharply: the dow lost 328 points or 1.4%, and the s&p 500 lost 1%.
Most sectors and major indexes ended higher on Tuesday as investors struggled to find an exit strategy to the new coronavirus blockade, despite warnings from the international monetary fund that the global economy could suffer its worst financial crisis since the great depression of the 1930s. The pan-European Stoxx 600 index was temporarily up about 0.6%. Germany’s DAX closed up 140.61 points, or 1.33 percent, at 10705.35. Britain’s FTSE 100 closed down 47.64 points, or 0.82 percent, at 5,795.07. France’s CAC-40 index closed up 17.07 points, or 0.38 percent, at 4,523.91. Spain’s IBEX35 index closed up 36.40 points, or 0.51%, at 7,107.00. Italy’s FTSE closed down 63.12 points, or 0.36 percent, at 17558.50. The Stoxx Europe 50 index closed up 28.26 points, or 0.98 percent, at 2,921.05.
The bond market
Optimism about the outbreak has sent Treasury yields gyrations. On Tuesday, the yield on the benchmark 10-year Treasury note was unchanged at 0.74 per cent, while the yield on the 30-year note was slightly lower at 1.38 per cent. Logan, director of regulation and analysis for market operations at the New York fed, said the fed’s purchases of Treasury bonds and mortgage-backed securities were unprecedented.
International spot gold Tuesday morning trading at $1709.30 an ounce, rose as high as $1746.40 an ounce, and touched as low as $1707.80 to close at $1726.48, up $13.82, or 0.81 percent.
COMEX gold futures for June delivery ended up 0.4 percent at $1,768.90 an ounce, after touching their highest level since February 2013 at $1,788.80.
The largest oil-producing states some drilling contractor that cut beyond the necessary to further production cuts, makes the Opec slashed production plans on a global scale resistance in Texas, together with the United States energy information administration (EIA) will be announced on Wednesday last week, crude oil, gasoline, and distillate stocks sharply increased expectations also weigh on the oil market, oil prices on Tuesday (April 14) fell sharply: U.S. WTI crude for May delivery closed down $2.30, or 10.3 percent, at $20.11 a barrel, its lowest close so far this month and just above the 18-year closing low of $20.09 set on March 30. WTI crude fell below $20 support to $19.96 a barrel during the session. Brent crude for June delivery fell $2.14, or 6.7%, to $29.60 a barrel. Brent crude fell 48 percent last month and 61 percent in the first quarter.