Last session market review
The dollar index closed down 0.79% at 99.00 on Tuesday. Spot gold fell more than 1 percent to $1710.36 an ounce. U.S. stocks closed higher, with the dow up more than 2 percent, briefly breaking through the 25, 000 mark.
On Wednesday, watch the Richmond federal reserve’s manufacturing index, the fed’s beige book on economic conditions, comments by fed officials James bullard and James bostick and European central bank President Christine lagarde.
Fx: euro/dollar at 1.0982; Sterling/dollar closed at 1.2331; The Australian dollar closed at 0.6650. The dollar was at 107.51 yen; Us dollar/Canadian dollar at 1.3773; The dollar was at 0.9653 Swiss francs.
Commodities: spot gold closed at $1,705.60 an ounce; Comex gold ended at $1,710.36 an ounce. Spot silver settled at $17.11 an ounce; Comex silver futures closed at $17.595 an ounce; Brent crude closed at $36.17 a barrel; NYMEX crude closed at $34.35 a barrel.
In the currency market
Euro: the euro rose for the first time in four days, or 0.76 percent, to 1.0982. On the technical level, the pivot point of the currency pair is at 1.0956, the initial resistance to the upward movement of the exchange rate is at 1.1021, the further resistance is at 1.1061, and the key resistance is at 1.1126. The initial support for the fall in the exchange rate is at 1.0916, further support at 1.0851, more key support at 1.0812.
Sterling: the pound/dollar rose for the second day in a row, up 1.22% at 1.2331. On the technical side, the pivot point of the currency pair is at 1.2292, the initial resistance to the upward movement of the exchange rate is at 1.2403, the further resistance is at 1.2473, and the key resistance is at 1.2583. The initial support for the decline of the exchange rate is at 1.2222, further support is at 1.2112, more critical support is at 1.2042.
Yen: the dollar fell for the first time in four days, closing at 107.51 yen, down 0.17 percent. On the technical level, the pivot point of the currency pair is at 107.61, the initial resistance to the upward movement of the exchange rate is at 107.82, the further resistance is at 108.13, and the key resistance is at 108.35. The initial support for the decline of the exchange rate is at 107.30, further support is at 107.09, more critical support is at 106.78.
The stock market
U.S. and European stocks: signs that the global economy is slowly recovering from the covid-19 outbreak and new developments in the development of a coronavirus vaccine lifted sentiment, with U.S. stocks on Tuesday extending last week’s strong gains. The dow Jones industrial average rose 529.95 points, or 2.2%, to 24,995.11. The average of 30 stocks traded briefly above 25,000 for the first time since early march and closed just below that level. The dow rose 3.3% last week, its best week since April. The s&p 500 rose 1.2% to 2,991.77, up more than 36% from its March 23 low. The index traded above 3,000 for most of the session, but fell back in the final minutes. For the first time since March 5, the s&p 500 rose above its 200-day moving average, which many technical analysts see as a sign of a long-term trend, but failed to close above a key level. The nasdaq composite index lagged, rising just 0.2% to 9,340.22. The s&p 500 and nasdaq both rose more than 3 percent last week.
European stock markets closed higher on Tuesday (May 26) on growing optimism about the reopening of the economy and a potential coronavirus vaccine. The pan-european stoxx 600 index briefly closed up 1 percent, while travel and leisure stocks rose 6.8 percent, with most sectors and major exchanges in positive territory. Germany’s DAX index closed up 109.22 points, or 0.96 percent, at 1,1500.50. Britain’s ftse 100 index closed up 71.26 points, or 1.19 per cent, at 6064.54. France’s cac-40 index closed up 66.33 points, or 1.46%, at 4,606.24. Spain’s IBEX35 index closed up 151.20 points, or 2.21 percent, at 7008.00. Italy’s ftse closed up 255.60 points, or 1.45 per cent, at 17851.50. The stoxx Europe 50 index closed up 28.30 points, or 0.95 percent, at 2,999.65.
International spot gold opened at $1,728.45 an ounce on Tuesday morning in Asia, rising as high as $1,735.09 an ounce and dipping as low as $1,708.32 to close at $1,710.36, down $18.83 or 1.09 percent.
COMEX gold for June delivery ended down $29.90, or 1.7 percent, at $1,705.60 an ounce.
Trading resumed in the United States after the long memorial day weekend. Signs that the global economy is slowly recovering from the outbreak prompted a general increase in risk appetite on Wall Street and pushed oil prices higher on Tuesday, May 26: U.S. WTI crude for July delivery rose $1.10, or 3.3%, to $34.35 a barrel, after hitting an intraday high of $34.80 a barrel. Brent crude for July delivery rose 64 cents, or 1.8 percent, to $36.17 a barrel. WTI crude and brent rose 13 per cent and 8 per cent, respectively, last week.