Last session market review
On April 27, the oil market repeated Monday’s carnage, with U.S. WTI crude futures for June down nearly 30% to below $12 and brent crude falling below $20. The dollar and gold came under pressure as global equity markets raced higher amid the collapse in oil prices, buoyed by hopes that the blockade was about to be eased, with gold falling as low as $1,704.
Fx: eur/usd 1.0828; The pound closed at 1.2404; The Australian dollar closed at 0.6464; Dollar/yen closed at 107.25; Us $1.4030; The dollar was last at 0.9751 Swiss francs.
Commodities: spot gold closed at $1,714.19 an ounce; Comex gold ended at $1,723.80 an ounce; Spot silver settled at $15.19 an ounce; Comex silver ended at $15.210 an ounce; Brent crude settled at $19.99 a barrel; NYMEX crude closed at $12.78 a barrel.
In the currency market
Euro: the euro rose for a second day, 0.07%, to 1.0828, as the dollar continued its slide. On the technical level, the currency’s pivot point is at 1.0833, the initial resistance to upward movement is at 1.0855, further resistance is at 1.0882, and the key resistance is at 1.0903. The initial support of the exchange rate down at 1.0806, further support at 1.0784, more critical support at 1.0757.
Sterling: the pound rose for the fourth day in a row, closing at 1.2424, up 0.46%. Technically, the currency’s pivot point is at 1.2414, the initial resistance to the exchange rate’s rise is at 1.2468, further resistance is at 1.2508, and the key resistance is at 1.2562. The initial support for the fall in the exchange rate is at 1.2373, further support at 1.2319, more critical support at 1.2279.
Yen: the dollar fell for a fourth straight day, closing 0.25% lower at 107.25. Technically, the currency’s pivot point is at 107.29, the initial resistance to upward movement is at 107.58, further resistance is at 107.91, and key resistance is at 108.20. The initial support of the exchange rate down at 106.95, further support at 106.66, more critical support at 106.32.
The stock market
U.S. and European stocks: U.S. stocks shrugged off a more than 25 percent drop in oil prices and posted gains on Monday as investors bet on the possibility of a post-pandemic economic reboot. The dow Jones industrial average closed up 358.51 points, or 1.5%, at 24,133.78. Monday marked the dow’s first close above 24,000 since April 17. The dow has risen more than 10 per cent this month and is on track for its best monthly performance since 2002. The s&p 500 gained 1.5% to close at 2,878.48. The s&p 500 is up 11.4 percent so far this month, on track for its biggest monthly gain since 1987. The nasdaq composite index rose 1.1% to 8,730.16. The record plunge in oil prices early last week sent both the dow and the s&p 500 down more than 1 per cent and the nasdaq down 0.2 per cent.
London (marketwatch) – European stock markets ended higher on Monday, with most sectors and major indexes up, as investors watched closely ahead of a meeting this week by the European central bank to discuss whether it will take further stimulus measures to revive the economy hit by the latest outbreak. The pan-european stoxx 600 index closed up 1.6 percent, led by a 4.6 percent gain in auto shares. Germany’s DAX closed up 316.51 points, or 3.06%, at 10652.60. Britain’s ftse 100 closed up 93.56 points, or 1.63 per cent, at 5845.79. France’s cac-40 index closed up 111.94 points, or 2.55 percent, at 4,505.26. Spain’s IBEX35 index closed up 117.10 points, or 1.77 percent, at 6,731.00. Italy’s ftse closed up 527.61 points, or 3.13 per cent, at 17,386.50. Europe’s stoxx 50 index closed up 71.68 points, or 2.55%, at 2880.75.
The bond market
Investor optimism also sent Treasury yields higher on Monday: the yield on the benchmark 10-year Treasury note rose 3 basis points to 0.62 per cent, while the yield on the 30-year note rose 1.19 per cent. Monday saw auctions of $57 billion in 13-week notes, $48 billion in 26-week notes, $42 billion in two-year notes and $43 billion in five-year notes.
International spot gold started at $1,723.49 an ounce in early trading on Monday, rising as high as $1,726.40 an ounce, and dipping as low as $1,704.45 to close at $1,714.19, down $13.49, or 0.78%.
COMEX June gold futures ended down 0.7 percent at $1,723.80 an ounce.
Fears that oil production cuts in the U.S. and elsewhere won’t be enough to offset the slump in demand caused by the new outbreak sent the oil market into a free fall on Monday. U.S. WTI crude for June delivery fell $4.16, or 24.6%, to $12.78 a barrel. Brent crude for June delivery fell $1.45, or 6.76 percent, to $19.99 a barrel.