Last session market review
On Wednesday, the dollar index staged a sharp rally from a low of 99.60 to close at 100.22. Spot gold also rose sharply from its lows, closing up $1,715.60 an ounce for the second straight day. U.S. stocks fell on Wednesday, Posting their worst performance since May 1, with the dow falling for the third straight day.
On Thursday, focus on U.S. import and export data, comments from bank of Japan governor haruhiko kuroda, bank of England governor John bailey, bank of Canada governor James poetz, European central bank vice President mervyn kyndos, and federal reserve governors kashkari and bostic.
Fx: euro/dollar at 1.0818; Sterling/dollar closed at 1.2229; The Australian dollar closed at 0.6454 against the U.S. dollar. The dollar was at 107.02 yen; Us dollar/Canadian dollar at 1.4099; The dollar was at 0.9720 Swiss francs.
Commodities: spot gold closed at $1,715.50 an ounce; Comex gold ended at $1,716.40 an ounce; Spot silver settled at $15.55 an ounce; Comex silver futures closed at $15.671 an ounce; Brent crude closed at $29.19 a barrel; NYMEX crude settled at $25.29 a barrel.
In the currency market
Euro: as the dollar turned higher, the euro/dollar reversed course to close at 1.0818, down 0.26%. On the technical level, the pivot point of the currency pair is at 1.0842, the initial resistance to the upward movement of the exchange rate is at 1.0872, the further resistance is at 1.0927, and the key resistance is at 1.0957. The initial support for the fall in the exchange rate is at 1.0787, further support at 1.0757, more critical support at 1.0702.
Sterling: the pound fell for a third day, or 0.24%, to 1.2229. On the technical side, the pivot point of the currency pair is at 1.2259, the initial resistance to the upward movement of the exchange rate is at 1.2307, the further resistance is at 1.2389, and the key resistance is at 1.2438. The initial support for the decline of the exchange rate is at 1.2177, further support is at 1.2128, the more critical support is at 1.2047.
Yen: the dollar fell for a second day, or 0.07%, to 107.02. Technically, the pivot point of the currency pair is at 107.01. The initial resistance to the upward movement of the exchange rate is at 107.28, the further resistance is at 107.55, and the key resistance is at 107.82. The initial support for the decline of the exchange rate is at 106.75, further support is at 106.47, more critical support is at 106.21.
The stock market
U.S. and European stocks: U.S. stocks fell Wednesday, their worst performance since May 1, as federal reserve chairman colin Powell’s warning about economic risks raised concerns about market valuations. The dow Jones industrial average fell 516.81 points, or 2.1%, to 23,247.97. The s&p 500 closed down 1.8% at 2,820; The tech-heavy nasdaq composite index fell 1.6% to 8,863.17, with the nasdaq slipping back into negative territory for the year.
London (MarketWatch) – European stocks ended sharply lower on Wednesday, with all sectors and major indexes falling, as concerns about the possibility of a second wave of COVID-19 outbreaks in some countries and the timing of a vaccine launch weighed on sentiment. The pan-European Stoxx 600 indexes closed down 6.60 points, or 1.94%, at 333.97. Travel and leisure stocks led the decline, falling 4.8%. Germany’s DAX index closed down 283.80 points, or 2.62%, at 10535.70. Britain’s FTSE 100 indexes closed down 92.92 points, or 1.55 percent, at 5,901.85. France’s cac-40 index closed down 127.55 points, or 2.85 percent, at 4,344.95. Spain’s IBEX35 index closed down 128.70 points, or 1.90 percent, at 6634.00. Italy’s FTSE closed down 369.82 points, or 2.11 percent, at 17,189.50. The Stoxx Europe 50 index closed down 72.75 points, or 2.52 percent, at 2811.45.
The bond market
Treasury yields fell after Mr Powell’s warning: the yield on the benchmark 10-year Treasury note fell 3 basis points to about 0.65 per cent, while the yield on the 30-year fell 1.34 per cent.
International spot gold opened at $1701.57 an ounce on Wednesday morning, rising as high as $1717.80 an ounce and dipping as low as $1697.90 to close at $1715.50, up $13.46 or 0.79%.
COMEX June gold futures were up $9.60 at $1,716.40 an ounce.
Oil prices closed lower on Wednesday, with U.S. WTI crude for June delivery down 49 cents, or 1.9%, at $25.29 a barrel, on concerns that some countries may be facing a second wave of COVID-19 outbreaks and extending travel restrictions. Brent crude for July delivery fell 79 cents, or 2.6 percent, to $29.19 a barrel.