Last session market review
On Tuesday, the dollar index extended losses to a low of 99.24 before bouncing back. At the same time, spot gold is to maintain shock upward trend, continue to hold steady rise.
The rest of the session will focus on fed minutes, EIA crude oil inventories, eurozone and Canadian CPI, and bank of England governor and deputy governor hearings.
Fx: euro/dollar at 1.0921; Sterling/dollar closed at 1.2250; The Australian dollar closed at 0.6537 against the U.S. dollar. The dollar was at 107.69 yen; U.S. dollar/Canadian dollar at 1.3939; The dollar was at 0.9710 Swiss francs.
Commodities: spot gold closed at $1,744.00 an ounce; Comex gold ended at $1745.60 an ounce. Spot silver settled at $17.33 an ounce; Comex silver futures closed at $17.901 an ounce; Brent crude closed at $34.65 a barrel; NYMEX crude closed at $32.50 a barrel.
In the currency market
Euro: the euro rose for the third day in a row to close at 1.0921, up 0.08 percent. On the technical level, the pivot point of the currency pair is at 1.0933, the initial resistance to the upward movement of the exchange rate is at 1.0965, the further resistance is at 1.1007, and the key resistance is at 1.1039. The initial support for the fall in the exchange rate is at 1.0891, further support at 1.0859, more key support at 1.0817.
Sterling: the pound/dollar rose for the second day in a row, up 0.44% at 1.2250. On the technical side, the pivot point of the currency pair is at 1.2242, the initial resistance to the upward movement of the exchange rate is at 1.2301, the further resistance is at 1.2355, and the key resistance is at 1.2413. The initial support for the decline of the exchange rate is at 1.2189, further support is at 1.2130, more critical support is at 1.2076.
Yen: dollar/yen rose for a second day, or 0.35%, to close at 107.69. Technically, the pivot point of the currency pair is at 107.68. The initial resistance to the upward movement of the exchange rate is at 108.10, the further resistance is at 108.50, and the key resistance is at 108.92. The initial support for the decline of the exchange rate is at 107.27, further support is at 106.85, more critical support is at 106.45.
The stock market
U.S. and European stocks fell for the first time in four sessions on Tuesday, erasing some of the previous session’s strong gains, with retail and banking stocks falling sharply. The dow Jones industrial average fell 390.51 points, or 1.6%, to 24,206.86. The s&p 500 fell 1.1% to 2,922.91. The s&p 500 is still more than 30% above its intraday low on March 23; The nasdaq composite index fell 0.5% to 9,185.10. It followed a strong session for Wall Street, with both the dow and the s&p 500 Posting their biggest one-day gains since April 6. The dow Jones industrial average jumped more than 900 points, while the s&p 500 closed up 3.2%, its highest level since March 6.
European stocks ended lower on Tuesday, with most major indexes falling, as rising optimism about vaccines boosted stocks yesterday. The pan-european Stoxx 600 closed 0.5 per cent lower. Auto shares fell 1 percent, driving losses, while insurance shares bucked the trend, rising 0.3 percent. Germany’s DAX index closed up 13.43 points, or 0.12%, at 11,072.30 on May 19. Britain’s ftse 100 index closed down 47.21 points, or 0.78 per cent, at 6001.38. France’s cac-40 index closed down 40.18 points, or 0.89 percent, at 4458.16. Spain’s IBEX35 index closed down 170.30 points, or 2.51 percent, at 6,609.00. Italy’s ftse closed down 348.95 points, or 2.01 per cent, at 17,052.50. The stoxx Europe 50 index closed down 9.43 points, or 0.32 percent, at 2902.45.
The bond market
Treasury yields fell slightly on Tuesday: the yield on the benchmark 10-year Treasury note was little changed at 0.723%, while the yield on the 30-year Treasury note was flat at 1.456%.
International spot gold opened at $1,744.00 an ounce on Tuesday morning, rising as high as $1,747.40 an ounce and dipping as low as $1,725.39 to close at $1,744.00 an ounce, up $12.38, or 0.71 percent.
COMEX June gold futures closed up nearly 0.7 percent at $1745.60 an ounce.
Oil prices were mixed on Tuesday amid signs that demand for oil and fuel is picking up from the trough and producers are following through on pledges to cut output. U.S. WTI crude for June delivery ended up 68 cents, or 1.7 percent, at $32.50 a barrel. Brent crude for July delivery closed down 16 cents, or 0.46 percent, at $34.65 a barrel.