Financial markets daily

Last session market review

On Friday (May 22), the U.S. dollar index rose sharply, ending positive for the second day in a row. At the same time, the international spot gold in the last day after the shock began to retreat, is continuing to maintain a small decline.

The rest of the trading day will focus on Germany’s final GDP for the first quarter and bank of Canada governor Paul poetz’s remarks.

Fx: euro/dollar at 1.0900; Sterling/dollar closed at 1.2164; The Australian dollar closed at 0.6535 against the U.S. dollar. The dollar was at 107.61 yen; U.S. dollar/Canadian dollar at 1.3994; The dollar was at 0.9709 Swiss francs.

Commodities: spot gold closed at $1,733.90 an ounce; Comex gold ended at $1,735.50 an ounce. Spot silver settled at $17.20 an ounce; Comex silver futures closed at $17.693 an ounce; Brent crude closed at $35.13 a barrel; NYMEX crude settled at $33.25 a barrel.

In the currency market

Euro: the euro fell for a second day, or 0.44 percent, to 1.0900. On the technical surface, the initial resistance of the exchange rate upward is at 1.0920, the further resistance is at 1.1000, and the key resistance is at 1.1120. The initial support for the fall in the exchange rate is at 1.0820, further support at 1.0760, more critical support at 1.0635.

Sterling: the pound fell for a third day, or 0.47%, to 1.2164. On the technical side, the initial resistance to the upward movement of the exchange rate is at 1.2250, further resistance is at 1.2300, and the key resistance is at 1.2385. The initial support for the decline of the exchange rate is at 1.2085, further support is at 1.1980, more critical support is at 1.1800.

Yen: dollar/yen rose for the second day in a row, ending at 107.61, up 0.02%. On the technical level, the initial resistance to the upward movement of the exchange rate is at 108.00, the further resistance is at 108.55, and the key resistance is at 109.25. The initial support for the decline of the exchange rate is at 107.35, further support is at 107.00, more critical support is at 106.30.

The stock market

U.S. and European stocks: U.S. stocks ended little changed Friday, capping a week of strong gains. The market is optimistic about the availability of a covid-19 vaccine in the near future and the reopening of all parts of the United States. The dow Jones industrial average fell 8.96 points, or less than 0.1%, to 24,465.16. For the week, the dow rose 3.3%, its best week since April 9. The s&p 500 rose 0.2 percent to 2,955.45, up about 35 percent from its intraday low on March 23. The nasdaq composite index rose 0.4% to 9324.59. Both the s&p 500 and nasdaq are up more than 3 percent this week.

European stocks ended mixed on Friday as further escalation of geopolitical tensions between China and the United States could threaten the signing of a “first phase” trade agreement earlier this year. The pan-european stoxx 600 index closed down 0.09 points, or 0.03 percent, at 340.17. Food and beverage stocks led the decline, down 0.6%. Germany’s DAX index closed up 5.79 points, or 0.05 percent, at 11,071.72. Britain’s ftse 100 index closed down 22.90 points, or 0.38 per cent, at 5,992.35. France’s cac-40 index closed down 0.89 points, or 0.02 percent, at 4444.56. Spain’s IBEX35 index closed up 6.90 points, or 0.10%, at 6,693.00. Italy’s ftse closed up 218.44 points, or 1.28 per cent, at 17,305.50. The stoxx Europe 50 index closed down 0.13 points, or 0.00%, at 2904.85.

The bond market

Fears of new instability in Hong Kong and rising tensions between China and the U.S. weighed on Treasury yields on Friday: the yield on the benchmark 10-year Treasury note fell to a low of 0.627% on Friday, its lowest level in a week. The yield on the 30-year Treasury note also fell to 1.3517%.

Commodity markets

The international spot gold market opened at $1,726.35 an ounce in early trading, rising as high as $1,739.51 an ounce, and fell as low as $1,722.80 to close at $1,733.90 an ounce, up $7.70 or 0.45%.

COMEX June gold futures closed up 0.8 percent at $1,735.50 an ounce, down 1.2 percent for the week.

On Friday (May 22), China’s government work report, no annual economic growth target is put forward, which means that the world’s largest oil importer of regular economic uncertainties will be longer than expected, oil prices fell to the end of the seven streak: July U.S. WTI crude futures fell 67 cents, or 2%, to $33.25 a barrel, once hit an intraday high of $30.72 a barrel; Brent crude for July delivery fell 93 cents, or 2.6 percent, to $35.13 a barrel. Despite Friday’s losses, WTI crude and brent are up 13% and 8% for the week, respectively.

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