Last session market review
U.S. stocks edged higher on Monday, as the safe-haven dollar weakened and non-u.s. currencies raced higher amid hopes of an economic recovery boosting risk appetite in global markets, while gold prices bottomed out at around $1,740 amid growing friction between China and the United States and protests in the United States.
Fx: euro/dollar at 1.1136; Sterling/dollar closed at 1.2490; The Australian dollar closed at 0.6797 against the U.S. dollar. The dollar was at 107.58 yen; Us dollar/Canadian dollar at 1.3567; The dollar was at 0.9606 Swiss francs.
Commodities: spot gold closed at $1,739.36 an ounce; Comex gold ended at $1,750.30 an ounce. Spot silver settled at $18.28 an ounce; Comex silver futures closed at $18.827 an ounce; Brent crude ended at $38.56 a barrel. NYMEX crude closed at $35.56 a barrel.
In the currency market
Euro: the euro rose for the fifth day in a row, or 0.34%, to close at 1.1136. On the technical side, the pivot point of the currency pair is at 1.1129, the initial resistance to the upward movement of the exchange rate is at 1.1159, the further resistance is at 1.1183, and the key resistance is at 1.1212. The initial support for the decline of the exchange rate is at 1.1105, further support is at 1.1076, more critical support is at 1.1052.
Sterling: the pound/dollar rose for the third day in a row, up 1.18% at 1.2490. On the technical side, the pivot point of the currency pair is 1.2438, the initial resistance to the upward movement of the exchange rate is 1.2556, the further resistance is 1.2624, and the key resistance is 1.2742. The initial support for the decline of the exchange rate is at 1.2369, further support is at 1.2251, more critical support is at 1.2183.
Yen: dollar/yen reversed course to close 0.18% lower at 107.58. On the technical level, the pivot point of the currency pair is at 107.60, the initial resistance to the upward movement of the exchange rate is at 107.83, the further resistance is at 108.08, and the key resistance is at 108.31. The initial support for the decline of the exchange rate is at 107.35, further support is at 107.12, more critical support is at 106.87.
The stock market
U.S. and European stocks: U.S. stocks extended last week’s gains on Monday as the economy recovered from the covid-19 outbreak. The dow Jones industrial average rose 91.91 points, or 0.4%, to 25.475.02. The s&p 500 rose 0.4 percent to 3,055.73, its highest close since early march and up 39 percent from its intraday low on March 23. The nasdaq composite index rose 0.7% to 9,552.05.
European stocks closed higher on Monday, with London’s ftse 100 index up 1.5%, France’s CAC 40 up 1.4%, Italy’s ftse MIB up 1.8% and Spain’s IBEX up 1.8%, as the continent’s lockdown on covid-19 eased. Markets in Austria, Denmark, Germany, Norway, Sweden and Switzerland were closed for public holidays.
International spot gold rose as high as $1,744.30 an ounce on Monday morning to $1,738.22, and fell as low as $1,722.69 to close at $1,739.36, up $9.85, or 0.57%.
COMEX gold for August delivery ended down 0.08 percent at $1,750.30 an ounce.
Rising tensions between China and the U.S. weighed on sentiment, but oil prices held steady on Monday after reports that Opec and Russia were close to reaching an agreement to extend production cuts. U.S. WTI crude for July settled up 7 cents, or 0.2%, at $35.56 a barrel. Brent crude for August delivery rose 72 cents, or 1.9 percent, to $38.56 a barrel. Last month, WTI oil prices rose 81 percent and cloth oil prices rose 96 percent. Despite the strong rebound in oil prices last month, WTI oil and cloth prices are still down more than 40 percent this year.