Financial markets daily

Last session market review

US President Donald Trump has accused China of mishandling the outbreak of novel coronavirus and threatened to impose new tariffs. As a result, on Friday (May 1) the U.S. market, the yuan, the U.S. stock market fell, gold and the dollar were boosted by gains.

Fx: euro/dollar at 1.0983; The pound closed at 1.2502; The Australian dollar closed at 0.6418; The dollar closed at 106.90 yen; Us $1.4084; The dollar was last at 0.9612 Swiss francs.

Commodities: spot gold closed at $1,699.12 an ounce; Comex gold ended at $1700.90 an ounce; Spot silver settled at $14.96 an ounce; Comex silver ended at $14.938 an ounce; Brent crude closed at $26.44 a barrel; NYMEX crude settled at $19.78 a barrel.

In the currency market

Euro: the euro/dollar rose for the third straight day, up 0.27%, to 1.0983. On the technical surface, the initial resistance to the upward trend of the exchange rate is 1.1006, further resistance is 1.1059, the key resistance is 1.1144; The initial support of the exchange rate down at 1.0868, further support at 1.0783, more critical support at 1.0730.

Sterling: the pound/dollar turned lower, closing at 1.2502, down 0.71%. On the technical surface, the initial resistance of the exchange rate upward is 1.2682, further resistance is 1.2770, the key resistance is 1.2896; The initial support of the exchange rate down at 1.2467, further support at 1.2341, more critical support at 1.2252.

Yen: dollar/yen reversed course to close 0.25% lower at 106.90. On the technical surface, the initial resistance to the upward trend of the exchange rate is at 107.64, further resistance at 108.12, the key resistance at 108.73; The initial support of the exchange rate down at 106.55, further support at 105.93, more critical support at 105.46.

The stock market

U.S. and European markets: U.S. stocks tumbled on Thursday after President Donald Trump raised the possibility of tariffs on China in response to a reporter’s question. The dow jones industrial average closed down 622.00 points, or 2.55 percent, at 23,723.69. The s&p 500 closed down 81.70 points, or 2.81%, at 2830.71. The NASDAQ closed down 284.60 points, or 3.20 percent, at 8,604.95. The s&p 500 rose 12.7 percent in April, its best monthly performance since 1987. The NASDAQ is up 15 percent this month, its best monthly performance since 2000; The dow jones industrial average rose 11% in April, its biggest monthly gain since 1987.

Markets in Germany, France, Italy and other major European economies were closed for labor day. U.S. President Donald trump’s threat to impose retaliatory tariffs on China over the new outbreak rattled markets and sent British stocks lower on Friday: the ftse 100 closed down 138.01 points, or 2.34%, at 5,723.60. European stocks ended their strongest month since October 2015 on Thursday.

The bond market

On Friday, Treasury yields climbed: the yield on the benchmark 10-year Treasury note rose to 0.635 per cent, while the yield on the 30-year note rose to 1.29 per cent.

Commodity markets

International spot gold started at $1684.97 an ounce in early trading on Friday, rising as high as $1704.91 and dipping as low as $1668.80 to close at $1699.12, up $13.27, or 0.79%, but ending the week down $28.56, or 1.65%.

COMEX gold futures for June delivery closed up 0.4 percent at $1,700.90 an ounce, after losing 2.0 percent for the week.

Opec and its Allies formally began production cuts of 9.7 million b/d on Friday. However, oil markets were mixed on Thursday after U.S. President Donald Trump raised the prospect of tariffs on China in response to a reporter’s question. U.S. WTI crude for June delivery closed up 94 cents, or 5%, at $19.78 a barrel. Brent crude for July delivery fell 4 cents, or 0.2 percent, to $26.44 a barrel.

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