Last session market review
The dollar came under pressure Wednesday after the federal reserve left interest rates unchanged and reiterated its commitment to do whatever it can to boost the economy. U.S. stocks surged on news that an experimental Gilead COVID 19 drug may help patients recover, with all three major indexes closing higher. Spot gold digested a series of good news, bottomed out and closed above 1710, while crude oil posted double-digit gains as U.S. crude inventories grew more slowly.
On Thursday, the focus will be on U.S. consumer spending, China’s official manufacturing purchasing managers’ index, the European central bank’s interest rate decision, eurozone GDP and more.
Fx: eur/usd 1.0871; The pound closed at 1.2465; The Australian dollar closed at 0.6555; The dollar closed at 106.70 yen; Us $1.3877; The dollar was last at 0.9734 Swiss francs.
Commodities: spot gold closed at $1,712.26 an ounce; Comex gold ended at $1,713.40 an ounce; Spot silver settled at $15.28 an ounce; Comex silver ended at $15.315 an ounce; Brent crude closed at $22.54 a barrel; NYMEX crude finished at $15.06 a barrel.
In the currency market
Euro: the euro/dollar turned higher, up 0.49% to 1.0871. On the technical plane, the currency’s pivot point is at 1.0858, the initial resistance to the exchange rate rising is at 1.0898, further resistance at 1.0926, and key resistance at 1.0966. The initial support of the exchange rate down at 1.0830, further support at 1.0790, more critical support at 1.0762.
Sterling: the pound turned higher against the dollar, closing up 0.34% at 1.2465. On the technical level, the currency’s pivot point is 1.2447, the initial resistance to upward movement is 1.2505, further resistance is 1.2543, and the key resistance is 1.2601. The initial support of the exchange rate down at 1.2409, further support at 1.2351, more critical support at 1.2313.
Yen: dollar/yen fell for the sixth day in a row, closing at 106.70, down 0.14%. Technically, the currency’s pivot point is at 106.62, the initial resistance to upward movement is at 106.88, further resistance is at 107.16, and key resistance is at 107.42. The initial support of the falling exchange rate is at 106.35, further support at 106.08, more critical support at 105.81.
The stock market
U.S. and Europe: Gilead Sciences’ announcement of positive data from clinical trials of its Remdesivir drug to treat COVID 19 sent European stocks higher on Wednesday, with most sectors and major indexes closing higher. The pan-European Stoxx 600 closed up 5.97 points, or 1.75%, at 347.06. Germany’s DAX closed up 308.16 points, or 2.85%, at 11103.79. Britain’s FTSE 100 closed up 155.30 points, or 2.61 percent, at 6,113.80. France’s CAC-40 index closed up 101.32 points, or 2.22%, at 4671.11. Spain’s IBEX35 index closed up 212.60 points, or 3.11%, at 7,049.00. Italy’s FTSE closed up 381.35 points, or 2.16 percent, at 18,058.50. Europe’s Stoxx 50 index closed up 62.19 points, or 2.12 percent, at 2994.25.
Gilead Sciences announced on Wednesday that its drug remdesivir has produced positive data in clinical trials for the treatment of COVID 19. Stocks rose sharply after the federal reserve kept interest rates near zero and offered additional help to the economy, while investors priced in a sharp drop in U.S. economic activity. The dow jones industrial average surged 532.31 points, or 2.2%, to 24,633.86. The dow is up 12.4% this month, on track for its biggest monthly gain since 1987; The s&p 500 gained 2.7% to close at 2,939.51. The s&p 500 is up more than 13% so far this month, on track for its biggest monthly gain since 1974. The NASDAQ composite index rose from 3.6% to 8,914.71.
The bond market
Treasury yields fell slightly after the fed’s announcement. The yield on the benchmark 10-year Treasury note fell about 2 basis points to 0.59 per cent, while the yield on the 30-year note fell slightly to 1.19 per cent.
International spot gold Wednesday morning opened at $1707.44 an ounce, rose as high as $1716.90 an ounce, and dipped as low as $1696.80 an ounce to close at $1712.26, up $5.28, or 0.31 percent.
COMEX June gold futures closed down 0.5 percent at $1,713.40 an ounce.
Investors have tried to balance optimism about the reopening of us businesses with the continuing threat to American health and the economy from a new outbreak, as well as fears that there is nowhere to store oil, with the recent surge in oil prices. On Wednesday (April 29), Geely announced its research and development of science and technology of rhett west Wei (Remdesivir) in clinical trials for the treatment of COVID – 19 obtained positive data, the market is a boost, prices closed higher: the United States in June WTI crude oil futures closed up $2.72, or 22%, to $15.06 a barrel, which hit an intraday high of $16.78 a barrel; Brent crude for June delivery rose $2.08, or 10 percent, to $22.54 a barrel.