Last session market review
Last session dollar index began to rebound and now continue to maintain the upward trend, hit a high of 96.71; Spot gold continued to fall sharply to a low of $1,632.91 before recovering and is now in the $1,644 area. U.S. stocks suffered another wild selloff, with the dow closing down 1464.94 points, or 5.9%, at 23,553.22, falling into a technical bear market. Toronto and Brazil’s benchmark stock index triggered a circuit breaker for the second time this week.
The rest of the day will focus on U.S. President Donald trump’s speech, European central bank interest rate decision, President Christine Lagarde’s press conference, U.S. PPI and initial jobless claims data.
Fx: eur/usd closed at 1.1268; The pound closed at $1.2817; The Australian dollar closed at 0.6482; Usd/jpy 104.55; Us $1.3775; The dollar was last at 0.9383 Swiss francs.
Commodities: spot gold closed at $1,634.60 an ounce; Comex gold ended at $1,642.30 an ounce; Spot silver settled at $16.73 an ounce; Comex silver ended at $16.776 an ounce; Brent crude closed at $35.79 a barrel; NYMEX crude closed at $32.98 a barrel.
In the currency market
The euro, which opened at $1.1327 in New York last session, suffered heavy losses during the session before trading around $1.1256. From the technical point of view, the MACD red kinetic energy column steadily contracted, KDJ indicator high downward from the overbought area, indicating that the recent rise in the exchange rate encountered resistance. The initial resistance to the exchange rate rise is 1.1339, further resistance is 1.1408, the key resistance is 1.1449; The initial support of the exchange rate down at 1.1229, further support at 1.1188, more critical support at 1.1119.
GBP/USD: opened at 1.2958, retreated again during the session, and closed around 1.2819. From the technical point of view, MACD red kinetic energy column shrinkage, KDJ index down close to the oversold area, indicating that the short – term exchange rate may continue to retreat. The initial resistance of the exchange rate upward is at 1.2926, further resistance at 1.3038, more critical resistance at 1.3099; The initial support of the exchange rate down at 1.2753, further support at 1.2692, more critical support at 1.2580.
Usd/jpy: the session opened at 104.56, trading in a narrow range during the session, before closing around 104.50. From the technical side, MACD green kinetic energy column moderate contraction, KDJ index up close to the Central Line, suggesting that the exchange rate rebound kinetic energy has risen. The initial resistance of the exchange rate upward is at 105.40, further resistance at 106.30, more critical resistance at 106.96; The initial support of the falling exchange rate is at 103.84, further support at 103.19, more critical support at 102.29
The stock market
U.S. and European stocks: stocks took a beating Wednesday as Wall Street grappled with the rapid spread of the virus and uncertainty over the fiscal response to stem the economic slowdown caused by the outbreak. The dow fell 1,464.94 points, or 5.9%, to 23,553.22. Thirty stocks ended the day in a bear market, down more than 20% from last month’s record close, ending an expansion that began with the 2008 financial crisis. The s&p 500 closed down 4.9% at 2,741.38, close to a bear market. The NASDAQ fell 4.7% to 7,952.05, down about 19% from its all-time high. A 20% drop is considered a bear market on Wall Street. However, most investors did not formally acknowledge this until the index closed.
European stock markets closed lower on Wednesday as investors closely watched the spread of the new coronavirus. The pan-European Stoxx 600 closed down 0.7 percent after rising more than 2 percent earlier in the day. Travel and leisure stocks led the way down 4%, while Banks and chemicals rose nearly 1%.
The bond market
Us Treasury yields rose on Wednesday as investors continued to focus on any fiscal measures to offset the impact of the coronavirus. The yield on the 10-year Treasury note, which moves inversely to its price, rose 6 basis points to 0.82 percent in volatile trading. The yield on the 30-year Treasury note was also higher, at about 1.33 percent. The yield on the benchmark 10-year Treasury note fell to an all-time low of 0.32 percent on Monday, its biggest one-day drop since the financial crisis.
International spot gold opened at $1,648.68 an ounce in early trading on Wednesday, with the bulls quickly mounting a charge that sent gold all the way up to $1,666.40 an ounce. Gold retreated slightly from its high in early morning trading in Europe before resuming its rally and hitting a new session high of $1,671.00 an ounce. Before the U.S. market opened, gold prices began to fall from their highs. The U.S. market continued its losses, losing the $1670, $1660, $1650, and $1640 levels, before rebounding slightly to close at $1634.60.
COMEX April gold futures closed down $18.00, or 1.1 percent, at $1,642.30 an ounce.
Crude oil prices fell on Wednesday. April U.S. WTI crude ended down $1.38, or -4 percent, at $32.98 a barrel. May brent closed down $1.43, or -3.8%, at $35.79 a barrel. Oil prices rebounded on Tuesday, and oil futures fell again today amid the threat of a new pneumonia outbreak and a price war in the oil market. Edward Moya, senior market analyst at Oanda. “Oil prices were too high on Tuesday and the next question on everyone’s mind should be when prices retest Monday’s lows.”