Financial markets daily

Last session market review

On May 7, the U.S. index surged to a high of 100.41 after a sharp retreat, and is now back around 99.80. Spot gold also surged past three whole point levels before falling to a high of $1,721.90 an ounce. All three major U.S. stock indexes rose, with the nasdaq recovering all of its losses for the year.

The rest of the session will focus on the April U.S. non-farm payrolls report, which is expected to be the worst in U.S. history.

Fx: euro/dollar at 1.0831; Sterling/dollar closed at 1.2362; The Australian dollar closed at 0.6493 against the U.S. dollar. The dollar was at 106.11 yen; U.S. dollar/Canadian dollar at 1.3971; The dollar was at 0.9728 Swiss francs.

Commodities: spot gold closed at $1,715.16 an ounce; Comex gold ended at $1,725.80 an ounce. Spot silver settled at $15.34 an ounce; Comex silver futures closed at $15.590 an ounce; Brent crude closed at $29.46 a barrel; NYMEX crude closed at $23.55 a barrel.

In the currency market

The euro: as the dollar reversed course, the euro posted its first gain in four days against the dollar, rising 0.36 percent to 1.0831. On the technical level, the pivot point of the currency pair is at 1.0811, the initial resistance to the upward movement of the exchange rate is at 1.0856, the further resistance is at 1.0879, and the key resistance is at 1.0924. The initial support for the fall in the exchange rate is at 1.0789, further support at 1.0744, more key support at 1.0721.

Sterling: the pound rose for the first time in five days to close at 1.2362, up 0.12%. On the technical side, the pivot point of the currency pair is at 1.2346, the initial resistance to the upward movement of the exchange rate is at 1.2426, the further resistance is at 1.2497, and the key resistance is at 1.2577. The initial support for the decline of the exchange rate is at 1.2275, further support is at 1.2195, more critical support is at 1.2124.

Yen: the dollar rose for the first time in five days to close at 106.28, up 0.16 percent. On the technical aspect, the pivot point of the currency pair is at 106.30, the initial resistance to the upward movement of the exchange rate is at 106.60, the further resistance is at 106.96, and the key resistance is at 107.26. The initial support for the decline of the exchange rate is at 105.94, further support is at 105.63, more critical support is at 105.28.

The stock market

U.S. and European stocks: technology stocks rose on the back of recent strong gains and investors increased their bets that the U.S. economy would soon restart. The dow Jones industrial average closed up 211.25 points, or 0.9%, at 23875.89. The s&p 500 gained 1.2% to 2,881.19. Still, both are down more than 10 per cent this year; The nasdaq composite index closed up 1.41% at 8,979.66, its fourth straight day of gains and recouping its huge losses for the year.

European stocks closed higher Thursday as investors closely watched the latest developments on the covid-19 outbreak and efforts to ease lockdown measures. The pan-european stoxx 600 index closed up 3.64 points, or 1.09 per cent, at 337.98, with retail stocks the best performers, up more than 3 per cent. Germany’s DAX index closed up 148.40 points, or 1.40 percent, at 10754.60, while Britain’s ftse 100 index closed up 87.02 points, or 1.49 percent, at 5940.78. France’s cac-40 index closed up 68.06 points, or 1.54 percent, at 4,501.44. Spain’s IBEX35 index closed up 71.30 points, or 1.07 percent, at 6,743.00. Italy’s ftse closed up 100.19 points, or 0.58 per cent, at 17,259.50. The stoxx Europe 50 index closed up 36.59 points, or 1.29 percent, at 2880.35.

The bond market

Treasury yields fell slightly after the bad jobs data: the benchmark 10-year note fell slightly to about 0.690 per cent, while the 30-year note also fell to about 1.391 per cent.

Commodity markets

International spot gold Thursday morning opened at $1684.58 an ounce, rose as high as $1721.80 an ounce, and dipped as low as $1681.70 an ounce to close at $1715.16, up $30.66 or 1.82%.

COMEX June gold futures ended up $37.30, or 2.2 percent, at $1,725.80 an ounce.

On Thursday, oil prices closed lower: U.S. WTI crude for June delivery fell 44 cents, or 1.8 percent, to $23.55 a barrel after hitting an intraday high of $26.73 a barrel. WTI crude has actually doubled since hitting a bottom of $12.34 a barrel on April 28, though it is still down more than 60% this year. Brent crude for July delivery fell 26 cents, or 0.87 percent, to $29.46 a barrel after touching $31.84 during the session. The oil is up 50% over the past eight trading days but is still down 55% this year.

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