Financial Markets Daily

A market review of the previous session

The NASDAQ broke 10,000 on Tuesday to close at a new record high, but sentiment turned cautious ahead of the blockbuster Fed decision, with the S&P 500 and Dow closing lower and dovish bets on the Fed pushing the dollar lower. Spot gold continued to rebound, rising nearly $30 at one point to 1,720.

Foreign exchange: EUR/USD at 1.1340; GBP/USD at 1.2729; Australian Dollar closed at 0.6963 USD; Usd/JPY closed at 107.71; Usd/Cad closed at 1.3417; The dollar closed at 0.9502 Swiss franc.

Commodities: Spot gold closed at $1,714.13 an ounce; Gold futures settled at $1,721.90 an ounce on Comex. Spot silver closed at $17.50 an ounce; Silver futures closed at $17.794 an ounce on Comex. Brent crude was at $41.18 a barrel. NYMEX crude closed at $38.94 a barrel.

In the currency market

Euro: Rose for the second day in a row to close 0.40% higher at $1.1340. Technically, the pivot point of the currency pair is at 1.1314, the initial resistance to the exchange rate upward is at 1.1388, further resistance is at 1.1437, and the key resistance is at 1.1511. The initial support is at 1.1264, further support is at 1.1191, and more critical support is at 1.1141.

Sterling: Rose for the ninth day in a row to close at 1.2729, up 0.05%. Technically, the pivot point of the currency pair is at 1.2699, the initial resistance to the upward movement of the exchange rate is at 1.2782, further resistance is at 1.2837, and the key resistance is at 1.2919. The initial support is at 1.2644, further support is at 1.2562, and more critical support is at 1.2507.

Yen: USD/JPY fell for a second day, closing down 0.65% at 107.71. Technically, the pivot point of the currency pair is at 107.96, the initial resistance to the exchange rate’s upward movement is at 108.32, further resistance is at 108.89, and the key resistance is at 109.24. The initial support for the lower exchange rate is at 107.39, further support is at 107.04, and more critical support is at 106.46.

The stock market

U.S. and European markets: U.S. stocks ended mixed Tuesday after a strong rally in the previous session. The Nasdaq Composite index rose 0.29% Tuesday to close at a record 9,953.75, after hitting an all-time high of 10,000 as traders piled into technology stocks. The Dow Jones Industrial Average fell 300.14 points, or 1.09%, to 27,272.30, snapping a six-day winning streak. The S&P 500 fell 0.78% to 3,207.18.

London (Marketwatch) – European stocks fell on Tuesday as investors weighed on prospects for a post-CoVID-19 economic recovery, with most sectors and major indexes falling, led by Banks and travel and leisure stocks, both down more than 3 percent. The Pan-European Stoxx 600 index closed down 4.58 points, or 1.22 percent, at 369.54. Germany’s DAX index closed down 198.19 points, or 1.55 percent, at 12,621.40. Britain’s FTSE 100 index closed down 138.94 points, or 2.15%, at 6,333.65.

The bond market

In bonds, investors also awaited the Fed’s monetary policy decision, with the yield on the benchmark 10-year Note falling 7 basis points to 0.81 percent and the 30-year yield falling 9 basis points to 1.56 percent.

Commodity markets

Spot gold rose as high as $1,720.60 an ounce in early Asian trading on Tuesday, and dipped as low as $1,691.67 an ounce to close at $1,714.13, up $16.51, or 0.97 percent.

COMEX gold futures for August delivery closed up 1.0 percent at $1,721.90 an ounce.

Oil prices rebounded slightly on Tuesday despite an unexpected increase in U.S. crude inventories reported last week by the American Petroleum Institute. U.S. WTI crude for July ended up 75 cents, or nearly 2 percent, at $38.94 a barrel. Brent crude for August delivery rose 38 cents, or nearly 1 percent, to $41.18 a barrel.

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