Last session market review
The dollar ended choppy on Monday, with spot gold recovering sharply after falling more than $120 to a low of $1,451.10 an ounce, but still Posting its sixth straight day of losses. Meanwhile, major U.S. stock indexes closed down sharply, with the s&p 500 falling about 12 percent, its worst day since Black Monday 30 years ago.
The rest of the day will focus on U.S. retail sales and NAHB house prices, the ZEW economic sentiment index for the eurozone and a package of measures in New Zealand.
Fx: eur/usd closed at 1.1181; The pound closed at $1.2267; The Australian dollar closed at 0.6114; Usd/jpy 105.85; Us $1.4013; The dollar was last at 0.9470 Swiss francs.
Commodities: spot gold closed at $1,514.06 an ounce; Comex gold ended at $1,486.50 an ounce; Spot silver settled at $12.89 an ounce; Comex silver ended at $12.816 an ounce; Brent crude closed at $30.05 a barrel; NYMEX crude closed at $28.7 a barrel.
In the currency market
Euro: the euro/dollar rebounded strongly after four straight losses to close at 1.1181 on Monday. On the technical surface, the initial resistance of the exchange rate upward is 1.1254, further resistance is 1.1327, the key resistance is 1.1418; The initial support of the exchange rate down at 1.1098, further support at 1.0998, more critical support at 1.0924.
Sterling: the pound closed lower against the dollar after four days of heavy losses, but the losses abated, closing at 1.2267 on Monday. On the technical surface, the initial resistance of the exchange rate upward is 1.2395, further resistance is 1.2521, more critical resistance is 1.2617; The initial support of the exchange rate down at 1.2172, further support at 1.2075, more critical support at 1.1949.
Yen: the dollar/yen gave back some of its gains after rising more than 300 points on Friday, closing at 105.85 on Monday. On the technical surface, the initial resistance of the exchange rate upward is at 107.23, further resistance at 108.61, more critical resistance at 109.65; The initial support of the exchange rate down at 104.81, further support at 103.77, more critical support at 102.39.
The stock market
Us and Europe: us stocks fell sharply on Monday, their biggest one-day fall since the Black Monday crash of 1987. The move follows the federal reserve’s massive monetary stimulus in the face of a coronavirus outbreak to stem slowing economic growth. The dow jones industrial average closed down 2,997.10 points, or 12.9%, at 20,188.52. At one point, 30 stocks fell more than 3,000 points in the final minutes. The s&p 500 fell 12% to 2,386.13, its lowest level since December 2018. The NASDAQ fell 12.3% to a record low of 6,904.59.
European stocks fell on Monday as much of Europe went into lockdown to prevent the spread of a new outbreak. The pan-European Stoxx 600 index temporarily closed down 5.1 percent, off lows reached earlier in the session. Travel and leisure stocks led the decline, tumbling about 10 percent, with all sectors and major indexes falling sharply. Spain’s IBEX index fell 8.3% and Italy’s FTSE MIB fell more than 6%. France’s CAC 40 index closed down 5.9 percent. Germany’s XETRA DAX closed down 5.3 percent and the UK’s FTSE 100 index closed down 4.7 percent.
The bond market
The federal reserve cut interest rates to near-zero on Sunday and vowed to aggressively increase its holdings of treasuries to protect the U.S. economy from the coronavirus, sending Treasury yields lower on Monday. The yield on the benchmark 10-year Treasury note fell 18 basis points to 0.76 percent, while the yield on the 30-year note fell 13 basis points to 1.38 percent
International spot gold opened at $1554.70 an ounce in early trading on Monday, rising more than $20, but then quickly fell to around $1524 before recovering slightly from the lows and maintaining a tight range. In the European session, gold prices began to fall, dropping about $90 from around $1,540 to a new low of $1,450.90 an ounce. In early trading, gold bounced nearly $70 from its low to just below $1,520 before retreating slightly to close at $1,514.06 an ounce.
COMEX April gold futures ended down $30.20, or 2.0%, at $1,486.50 an ounce, the lowest close since December 2019.
U.S. WTI crude for April delivery closed down $3.03, or 9.6 percent, at $28.7 a barrel on Monday, after briefly touching $28.3 lower. Oil prices did not respond to another emergency rate cut by the federal reserve, and wti April futures hit a four-year low today. Brent may end down $3.80, or more than 11 percent, at $30.05 a barrel on Monday — the lowest close since January 2016. In addition to the fed’s interest rate cut to zero on Sunday, the bank of Japan left rates unchanged on Monday but doubled net purchases of exchange-traded funds to 1.2 trillion days; The people’s Bank of China injected 100 billion yuan into the financial system through a one-year medium-term lending facility — a policy so benign that it failed to save the oil price.