Financial Markets Daily

A market review of the previous session

U.S. stocks rallied Wednesday as investors largely ignored violent protests in the United States and the dollar and gold plunged nearly $30 to the 1700 mark, briefly falling below 1690, while the dollar index fell for a seventh straight day.

Forex: EUR/USD at 1.1231; GBP/USD at 1.2571; Australian Dollar/US $0.6914; Usd/JPY closed at 108.89; Usd/Cad closed at 1.3493; The dollar closed at 0.9610 Swiss franc.

Commodities: Spot gold at $1,697.48 an ounce; Gold futures at $1704.80 an ounce on Comex. Spot silver closed at $17.63 an ounce; Silver futures closed at $17.958 an ounce on Comex. Brent crude closed at $39.79 a barrel. NYMEX crude was at $37.29 a barrel.

In the currency market

Euro: Rose for the seventh day in a row to close at 1.1231, up 0.56%. Technically, the pivot point of the currency pair is at 1.1218, the initial resistance to the exchange rate upward is at 1.1271, the further resistance is at 1.1310, and the key resistance is at 1.1363. The initial support is at 1.1180, further support is at 1.1127, and more critical support is at 1.1088.

Sterling: rose for the fifth day in a row to close at 1.2571, up 0.18%. Technically, the pivot point of the currency pair is at 1.2575, the initial resistance to the exchange rate upward is at 1.2607, the further resistance is at 1.2646, and the key resistance is at 1.2677. The initial support is at 1.2536, further support is at 1.2505, and more critical support is at 1.2466.

Yen: USD/JPY rose for the second day in a row to close at 108.89, up 0.21%. Technically, the pivot point of the currency pair is at 108.75, the initial resistance to the exchange rate upward is at 109.09, the further resistance is at 109.31, and the key resistance is at 109.65. The initial support is at 108.53, further support is at 108.19, and more critical support is at 107.96.

The stock market

U.S. and European stocks: Stocks rose sharply on Wednesday on the back of better-than-expected economic data, as optimism about the economic recovery outweighed fears of a global pandemic, rising geopolitical and trade tensions and nationwide protests. The Dow Jones Industrial Average jumped 527.24 points to close at 26,269.89, a 2.1% gain for the third straight day. The S&P 500 rose 1.4 per cent to 3,122.87, its first four-day close since early February. The S&P 500 is up more than 2 percent so far this month, up more than 40 percent from its March lows. The Nasdaq Composite index rose 0.8% to 9,682.91.

London (Marketwatch) – European stocks closed higher on Wednesday as optimism about the reopening of major economies overshadowed concerns about mass protests in the United States. The Pan-European Stoxx 600 index closed up 9.15 points, or 2.54%, at 368.92. Germany’s DAX index closed up 459.12 points, or 3.82%, at 12,480.40. The FTSE 100 closed up 165.41 points, or 2.66%, at 6,385.55. The CAC-40 index closed up 163.41 points, or 3.36%, at 5,022.38. Spain’s IBEX35 index closed up 218.90 points, or 2.95%, at 7,627.00. Italy’s FTSE closed 678.41 points, or 3.58%, higher at 19,6949.50. In Europe, the Stoxx 50 index closed up 109.93 points, or 3.48%, at 3,268.95.

The bond market

Yields on US treasuries surged, with the benchmark 10-year note jumping more than 7 basis points to 0.752 per cent. The 30-year yield rose 6 basis points to 1.543 per cent.

Commodity markets

Spot gold opened at $1,726.13 an ounce Wednesday morning in Asia, rising as high as $1,731.70 and dropping as low as $1,688.89 to close at $1,697.48, down $29.74, or 1.72 percent.

Gold futures for August delivery on COMEX fell $29.20, or 1.7 percent, to close down for a third straight session at $1,704.80 an ounce.

Oil prices edged higher on Wednesday after EIA and API data showed a surprise drop in U.S. crude inventories last week. U.S. WTI crude futures for July rose 48 cents, or 1.3%, to $37.29 a barrel. Brent crude for August delivery rose 22 cents, or 0.6 percent, to $39.79 a barrel. Despite a strong rebound last month (WTI up 81 per cent and cloth up 96 per cent), both WTI and cloth prices are down more than 40 per cent this year.

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