Last session market review
The U.S. index rose sharply to a new high of 96.61 on Wednesday, while major non-u.s. currencies such as the euro and sterling retreated. Spot gold closed down more than $30 and the three major U.S. stock indexes surged, with the dow Jones industrial average up nearly 1,170 points. Oil prices rebounded.
Coming up on Wednesday, the focus will be on the us CPI, EIA inventories, EIA and Opec’s monthly short-term energy outlook, as well as the UK’s fiscal 2020 budget.
Fx: Eur/USD closed at 1.1277; The pound closed at 1.2907; The Australian dollar closed at 0.6503; The dollar closed at 105.62 yen; Us $1.3724; The dollar was last at 0.9401 Swiss francs.
Commodities: spot gold closed at $1,648.94 an ounce; Comex gold ended at $1,660.30 an ounce; Spot silver settled at $16.87 an ounce; Comex silver ended at $16.955 an ounce; Brent crude settled at $37.22 a barrel; NYMEX crude closed at $34.36 a barrel.
In the currency market
The euro opened at $1.1357 in the previous session in New York, before falling back in the session and trading around $1.1300 late in the day. From the technical point of view, MACD red kinetic energy column steady contraction, KDJ index high dead fork downward, indicating that the exchange rate short – term upside space is limited. The initial resistance of the exchange rate upward is 1.1398, further resistance is 1.1520, the key resistance is 1.1582; The initial support of the exchange rate down at 1.1215, further support at 1.1153, more critical support at 1.1031.
Sterling/dollar: the session opened at 1.3004, with heavy losses during the session and late trading around 1.2890. From the technical side, the MACD red kinetic energy column continues to contract, KDJ index down close to the Central Line, indicating that the exchange rate may resume to decline in the near future. The initial resistance of the exchange rate upward is 1.3065, further resistance is 1.3221, more critical resistance is 1.3313; The initial support of the exchange rate down at 1.2818, further support at 1.2726, more critical support at 1.2570.
Usd/jpy: the session opened at 104.36, bounced in the session, trading around 105.14. From the technical point of view, MACD green kinetic energy column moderate contraction, KDJ indicators from the oversold zone, suggesting that the exchange rate rebound kinetic energy began to release. The initial resistance of the exchange rate upward is at 107.04, further resistance at 108.44, more critical resistance at 110.96; The initial support of the falling exchange rate is at 103.12, further support at 100.60, more critical support at 99.20.
The stock market
U.S. and European stocks rose sharply Tuesday as investors weighed the prospect of an economic impact from the U.S. fiscal stimulus and a new coronavirus. The dow closed up 1,167.14 points, or 4.9%, at 25,018.16. Tuesday’s rise halved the dow’s losses from Monday. Earlier in the day, the dow was down as much as 160 points. The s&p 500 rose 4.9 percent to 2882.23, its biggest one-day gain since December 26, 2018. The NASDAQ gained 4.9 percent to 8,347.40.
European stocks ended lower on Tuesday, erasing early gains after suffering their worst day since the financial crisis. The pan-European Stoxx 600 index temporarily closed down 0.88 percent, giving up early gains. While the basic resources sector was up about 1.3 percent, most sectors closed in the red.
The bond market
Us Treasury yields rebounded from record lows on Tuesday as investors returned to equities after their worst day since the financial crisis. The yield on the 10-year Treasury note jumped 20 basis points to about 0.70 percent. The benchmark rate fell to a record low of 0.318% on Monday. The yield on the 30-year Treasury note also rose above 1%, last at 1.16%.
International spot gold started at $1,679.98 an ounce in early trading on Tuesday and soon hit a session high of $1,680.31 an ounce, before oscillating down more than $30 to below the $1,750 mark before bottoming out and rebounding slightly. In Europe, gold at $1660 a line to maintain a narrow consolidation. After initially trading in a tight range, gold fell about $20 to a new session low of $1,641.80 an ounce before recovering slightly to close at $1,648.94.
COMEX April gold futures ended down $15.4, or 0.92 percent, at $1,660.30 an ounce.
Oil prices rebounded on Tuesday. U.S. WTI crude for April delivery closed up $3.23, or 11.95 percent, at $34.36 a barrel on Tuesday after falling $10.15, or 24.6 percent, to $31.13 on Monday. Brent may futures closed up $2.86, or 8.3 percent, at $37.22 a barrel on Tuesday after falling $10.91, or 24.1 percent, to $34.36 on Monday. Crude oil futures, the main component of the rally today, recouped some of yesterday’s losses. Tuesday’s rally was “relatively modest” compared with Monday’s plunge.