Financial markets daily

Last session market review

On May 21, the dollar index closed up 0.24 percent at 99.42, hitting a high of 99.53. Spot gold closed down 1.19 percent at $1,726.20 an ounce. U.S. stocks closed lower, with the dow down more than 100 points.

On Friday, the focus will be on the bank of Japan’s interest-rate decision, minutes from the European central bank’s meeting and retail sales in the U.K. and Canada.

Fx: euro/dollar at 1.0948; Sterling/dollar closed at 1.2221; The Australian dollar closed at 0.6562. The dollar was at 107.59 yen; Us dollar/Canadian dollar at 1.3952; The dollar was at 0.9703 Swiss francs.

Commodities: spot gold closed at $1,726.20 an ounce; Comex gold ended at $1,721.90 an ounce. Spot silver settled at $17.07 an ounce; Comex silver futures closed at $17.364 an ounce; Brent crude ended at $36.06 a barrel; NYMEX crude settled at $33.92 a barrel.

In the currency market

Euro: the euro fell for the first time in five days, or 0.28%, to 1.0948. On the technical level, the pivot point of the currency pair is at 1.0964, the initial resistance to the upward movement of the exchange rate is at 1.0992, the further resistance is at 1.1036, and the key resistance is at 1.1064. The initial support for the fall in the exchange rate is at 1.0921, further support at 1.0893, more key support at 1.0849.

Sterling: the pound fell for a second day, or 0.14%, to close at 1.2221. On the technical side, the pivot point of the currency pair is at 1.2219, the initial resistance to the upward movement of the exchange rate is at 1.2252, the further resistance is at 1.2283, and the key resistance is at 1.2316. The initial support for the decline of the exchange rate is at 1.2188, further support is at 1.2154, the more critical support is at 1.2124.

Yen: dollar/yen turned higher to close at 107.59, up 0.12%. On the technical level, the pivot point of the currency pair is 107.64, the initial resistance to the upward movement of the exchange rate is 107.80, the further resistance is 108.01, and the key resistance is 108.18. The initial support for the decline of the exchange rate is at 107.43, further support is at 107.26, more critical support is at 107.06.

The stock market

U.S. and European stocks ended the week’s strong rally on Thursday, with the dow Jones industrial average down 101.78 points, or 0.4%, to 24474.12, as geopolitical tensions between China and the U.S. intensified following the labor department’s report on new claims for state unemployment benefits. The s&p 500 fell 0.8% to 2,948.51. The nasdaq composite index fell nearly 1% to 9,284.88.

European stocks closed lower on Thursday after purchasing managers’ index (PMI) data showed manufacturing and services activity in the euro zone slowed again in May. Germany’s DAX index closed down 165.71 points, or 1.48 percent, at 11,058.00. Britain’s ftse 100 index closed down 52.46 points, or 0.86 per cent, at 6,014.70. France’s cac-40 index closed down 51.53 points, or 1.15 percent, at 4445.45. Spain’s IBEX35 index closed up 4.40 points, or 0.07 percent, at 6688.00. Italy’s ftse index closed down 133.61 points, or 0.78 per cent, at 17079.50. The stoxx Europe 50 index closed down 37.14 points, or 1.26 percent, at 2905.25.

The bond market

In the bond market, U.S. Treasury yields held steady on Thursday after last week’s jobless claims data: the yield on the benchmark 10-year note fell slightly to 0.6688 percent, while the yield on the 30-year fell to 1.3828 percent.

Commodity markets

The international spot gold market opened at $1,746.40 an ounce in early trading on Thursday, rising as high as $1,750.39 an ounce and dipping as low as $1,716.44 to close at $1,726.20, down $20.77 or 1.19 percent.

COMEX June gold futures ended down $30.20, or 1.7 percent, at $1,721.90 an ounce, the lowest close since May 13.

Oil prices extended gains on Thursday for a seventh straight day as hedge funds piled into the affected markets as production cuts rebalanced the market. U.S. WTI crude for July delivery closed up 43 cents, or 1.3%, at $33.92 a barrel, after hitting an intraday high of $34.63 a barrel. Brent crude for July delivery rose 31 cents, or 0.9 percent, to $36.06 a barrel.

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