Financial Markets Daily

A market review of the previous session

Stocks snapped a four-month winning streak on Thursday as weak U.S. trade data overshadowed slightly upbeat labor market data and optimism about an economic rebound. Meanwhile, the European Central Bank’s stimulus efforts triggered a surge in the euro, the dollar tumbled nearly 100 points to lose 97 points and spot gold briefly rose above the 1,720 mark.

The day will focus on the U.S. non-agricultural sector, Canadian employment data and Opec’s joint technical Committee meeting.

Forex: EUR/USD at 1.1231; GBP/USD at 1.2594; Australian Dollar/US $0.6941; Usd/JPY closed at 109.12; Usd/Cad closed at 1.3498; The dollar closed at 0.9554 Swiss franc.

Commodities: Spot gold at $1,713.59 an ounce; Gold futures settled at $1,724.40 an ounce on Comex. Spot silver closed at $17.68 an ounce; Silver futures closed at $18.061 an ounce on Comex. Brent crude closed at $39.99 a barrel; NYMEX crude was at $37.41 a barrel.

In the currency market

Euro: The euro rose for the eighth day in a row to close at 1.1336, up 0.93%. Technically, the pivot point of the currency pair is at 1.1298, the initial resistance to the exchange rate upward is at 1.1402, further resistance is at 1.1466, and the key resistance is at 1.1570. The initial support is at 1.1234, further support is at 1.1130, and more critical support is at 1.1066.

Sterling: Rose for the sixth day in a row to close at 1.2594, up 0.18%. Technically, the pivot point of the currency pair is at 1.2576, the initial resistance to the exchange rate upward is at 1.2652, further resistance is at 1.2709, and the key resistance is at 1.2785. The initial support is at 1.2519, further support is at 1.2443, and more critical support is at 1.2387.

Yen: DOLLAR/jPY rose for the third day in a row to close at 109.12, up 0.21%. Technically, the pivot point of the currency pair is at 108.97, the initial resistance to the upward movement of the exchange rate is at 109.33, the further resistance is at 109.55, and the key resistance is at 109.91. Initial support for the lower exchange rate is at 108.75, further support is at 108.39, and more critical support is at 108.16.

The stock market

U.S. and European stocks: Stocks were mixed Thursday, giving up some of their strong gains in June, driven by the Labor Department’s jobs data and a late selloff in technology stocks. The Dow Jones Industrial Average rose 11 points, or 0.1 percent, to 26,281.82. The S&P 500 fell 0.3 percent to 3,112.35. The Nasdaq Composite index fell 0.7% to 9,615.81. The S&P 500 and nasdaq posted their first losses in five sessions on Thursday. Still, major stock indexes rose steadily last week. So far this week, the Dow is up 3.5 percent, the S&P 500 is up 2.2 percent and the Nasdaq is up 1.3 percent. Since March 23, the S&P 500 has rallied more than 42 percent and the Dow has gained more than 43 percent. Nasdaq up more than 46%.

European stocks closed lower Thursday (June 4) after the European Central Bank announced an expansion of its Novel Coronavirus stimulus program. The Pan-European Stoxx 600 index closed down 2.67 points, or 0.72%, at 366.25. Germany’s DAX index closed down 59.26 points, or 0.47 percent, at 12,428.10. Britain’s FTSE 100 index closed down 40.36 points, or 0.63%, at 6,342.05. France’s CAC-40 index closed down 10.40 points, or 0.21%, at 5,011.98. Spain’s IBEX35 index closed down 55.40 points, or 0.73%, at 7,571.00. Italy’s FTSE closed up 8.69 points, or 0.04%, at 19,650.50. In Europe, the Stoxx 50 index closed down 7.34 points, or 0.22%, at 3,262.25.

Commodity markets

Spot gold rose as high as $1,721.10 in early Asian trading on Thursday morning at $1,697.02 and dipped as low as $1,696.36, up $16.11, or 0.94 percent, to settle at $1,713.59 an ounce.

August gold futures on COMEX closed up $22.60, or 1.3 percent, at $1,724.40 an ounce.

Oil prices edged higher on Thursday after EIA and API data showed a surprise drop in U.S. crude inventories last week. U.S. WTI crude futures for July rose 12 cents, or 0.3%, to $37.41 a barrel, up 5% for the week. Brent crude for August delivery rose 20 cents, or 0.3 percent, to $39.99 a barrel, touching an intraday high of $40.09. Last month, WTI oil prices rose 81 per cent and cloth prices rose 96 per cent. Both are down more than 40 per cent this year despite a strong rebound last month.

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