Last session market review
The index continued to struggle near its lows after falling to a low of 99.00 on Wednesday. At the same time, the international spot gold shock upward for the second consecutive day to close higher, now trading in a narrow consolidation below $1,750. Crude oil markets also surged, with WTI crude ending more than 4 percent higher. U.S. stocks closed higher across the board, with major indexes up more than 3 percent for the week.
On Thursday, the focus will be on fed comments from Powell, clari, brainard and Williams, U.S. initial jobless claims, NAR existing home sales and PMI data from Europe and the United States.
Fx: euro/dollar at 1.0979; Sterling/dollar closed at 1.2238; The Australian dollar closed at 0.6596 against the U.S. dollar. The dollar was at 107.46 yen; U.S. dollar/Canadian dollar closed at 1.3897; The dollar was at 0.9647 Swiss francs.
Commodities: spot gold closed at $1,746.97 an ounce; Comex gold ended at $1,752.10 an ounce. Spot silver settled at $17.53 an ounce; Comex silver futures closed at $18.031 an ounce; Brent crude closed at $35.75 a barrel; NYMEX crude settled at $33.49 a barrel.
In the currency market
Euro: the euro rose for the fourth day in a row, or 0.53%, to 1.0979. Technically, the pivot point of the currency pair is at 1.0965. The initial resistance to the upward movement of the exchange rate is at 1.1012, the further resistance is at 1.1045, and the key resistance is at 1.1092. The initial support for the fall in the exchange rate is at 1.0931, further support at 1.0884, more key support at 1.0851.
Sterling: the pound fell for the first time in three days to close at 1.2238, down 0.10 percent. On the technical side, the pivot point of the currency pair is at 1.2248, the initial resistance to the upward movement of the exchange rate is at 1.2276, the further resistance is at 1.2314, and the key resistance is at 1.2342. The initial support for the decline of the exchange rate was at 1.2209, further support was at 1.2182, and the more critical support was at 1.2143.
Yen: the dollar fell for the first time in three days to close at 107.46, down 0.21 percent. On the technical level, the pivot point of the currency pair is 107.61, the initial resistance to the upward movement of the exchange rate is 107.90, the further resistance is 108.26, and the key resistance is 108.55. The initial support for the decline of the exchange rate is at 107.25, further support is at 106.96, more critical support is at 106.60.
The stock market
U.S. and European stocks: U.S. stocks rose sharply Wednesday, with major indexes up more than 3% for the week, as lockdown measures around the world eased and traders stepped up bets on economic recovery. The dow jones industrial average closed up 369.04 points, or 1.5%, at 24575.90. The s&p 500 rose 1.7% to 2,971.61, its highest close since March 6. The NASDAQ composite index outperformed the broader market, gaining 2.1% to 9375.78, within 5% of its February record high. The NASDAQ is up 4.5% so far this year.
European stock markets closed higher on Wednesday as investors monitored corporate earnings and stepped up efforts to open their economies. The pan-European Stoxx 600 index briefly closed up 1 percent, while technology stocks rose more than 2 percent, with most major exchanges moving into positive territory. Germany’s DAX index closed up 154.56 points, or 1.40 percent, at 11,229.85. Britain’s FTSE 100 index closed up 67.66 points, or 1.13 percent, at 6,069.89. France’s cac-40 index closed up 38.82 points, or 0.87 percent, at 4496.98. Spain’s IBEX35 index closed up 72.90 points, or 1.10%, at 6682.00. Italy’s FTSE closed up 177.96 points, or 1.04 percent, at 17,212.50. The Stoxx Europe 50 index closed up 39.27 points, or 1.35 percent, at 2,941.85.
The bond market
On the U.S. side, the Treasury Department on Wednesday auctioned 20-year notes for the first time since 1986 to finance record levels of borrowing to support the economy through the pandemic. Yields fell slightly: the yield on the benchmark 10-year Treasury note fell 1 basis point to 0.693 per cent, while the yield on the 30-year Treasury note fell slightly to 1.411 per cent.
International spot gold opened at $1,743.57 an ounce on Wednesday morning, rising as high as $1,753.70 an ounce and dipping as low as $1,741.80 to close at $1,746.97, up $2.97 or 0.17 percent.
COMEX June gold futures closed up 0.37 percent at $1,752.10 an ounce.
Oil prices extended their gains on Wednesday amid signs that the world economy is recovering and demand for oil and fuel is picking up from its trough. U.S. WTI crude for July delivery closed up $1.53, or 4.8 percent, at $33.49 a barrel, having hit an intraday high of $33.74 a barrel. Brent crude for July delivery rose $1.10, or 3.2 percent, to $35.75 a barrel.