Financial Markets Daily

A market review of the previous session

On Thursday, fears of a second outbreak of coVID-19 sent risk aversion soaring and rocked financial markets. The U.S. dollar index closed up 0.7% at 96.77 after hitting 96.84. Spot gold closed at $1,726.99 an ounce, down $11.25, or 0.65 percent. All three major U.S. stock indexes plunged well over 5% in their biggest one-day percentage decline since March 16, with the Dow dropping more than 1,860 points. U.S. WTI crude for July delivery fell $3.26, or 8.2 percent, to $36.34 a barrel, its biggest one-day drop since April.

Forex: EUR/USD at 1.1291; GBP/USD at 1.2600; Australian Dollar closed at 0.6853 usd; Usd/JPY closed at 106.85; Usd/Cad closed at 1.3623; The dollar closed at 0.9442 Swiss franc.

Commodities: Spot gold at $1,726.99 an ounce; Gold futures at $1,739.80 an ounce on Comex; Spot silver closed at $17.63 an ounce; Silver futures at $17.889 an ounce on Comex; Brent crude closed at $38.55 a barrel; NYMEX crude was at $36.34 a barrel.

In the currency market

Euro: The euro fell against the DOLLAR for the first time in four days, closing down 0.71 percent at 1.1291. Technically, the pivot point of the currency pair is at 1.1329, the initial resistance to the exchange rate upward is at 1.1370, further resistance is at 1.1444, and the key resistance is at 1.1485. The initial support is at 1.1254, further support is at 1.1214, and more critical support is at 1.1139.

Sterling: Sterling fell against the DOLLAR for the first time in 11 days, closing down 1.11 per cent at 1.2600. Technically, the pivot point of the currency pair is at 1.2646, the initial resistance to the exchange rate upward is at 1.2707, the further resistance is at 1.2814, and the key resistance is at 1.2875. The initial support is at 1.2538, further support is at 1.2478, and more critical support is at 1.2370.

Yen: USD/JPY fell for the fourth day in a row, closing down 0.25% at 106.85. Technically, the pivot point of the currency pair is at 106.88, the initial resistance to the upward movement of the exchange rate is at 107.20, further resistance is at 107.55, and the key resistance is at 107.87. Initial support for the lower exchange rate is at 106.54, further support is at 106.22, and more critical support is at 105.87.

The stock market

Stock markets in Europe and America, the United States of Texas and Florida and Arizona hospitalized from COVID – 19 related number hit a record high, the market worried that the second wave of the new champions league outbreak of strikes, combined with Powell, chairman of the federal reserve yesterday suggested that the new epidemic may cause permanent damage to America’s economy, is expected to recover from the disease will take years, U.S. stocks on Thursday (June 11) recorded the biggest one-day fall since March 16. The Dow Jones Industrial Average fell 1,861.82 points, or 6.9%, to 25,128.17. The S&P 500 fell 5.9% to 3,002.10. The Nasdaq Composite index fell 5.3% to 9,492.73. The nasdaq closed above 10,000 for the first time in its history at 10,020.35.

London (Marketwatch) – European stocks fell sharply on Thursday, with all sectors and major indexes Posting losses, spurred by the Latest comments from the Federal Reserve and the dovish outlook, as well as investor concerns over a second wave of coVID-19. The Stoxx 600 in Europe closed down 15.08 points, or 4.10%, at 353.07. Travel and leisure stocks led the way, falling more than 2%. Germany’s DAX index closed down 550.32 points, or 4.39%, at 1,1979.84. Britain’s FTSE 100 index closed down 254.10 points, or 4.01 percent, at 6,075.03. The Cac-40 index in France closed down 237.82 points, or 4.71 percent, at 4,815.60. Spain’s IBEX35 index closed down 384.90 points, or 5.02%, at 7,279.00. Italy’s FTSE index closed down 953.51 points, or 4.83%, at 18,804.50. In Europe, the Stoxx 50 index closed down 149.16 points, or 4.53 percent, at 3,144.55.

The bond market

Bonds and traditional safe-haven assets such as gold rallied as the Fed’s gloomy outlook sent risk aversion soaring: the yield on the 10-year Treasury note fell 0.66 per cent to its lowest level in more than a week. Gold futures rose 1.1% to $1,739.80 an ounce.

Commodity markets

Spot gold opened at $1,738.33 an ounce on Thursday morning in Asia, rising as high as $1,744.40. It dipped as low as $1,720.98 an ounce, down $11.25, or 0.65 percent, to settle at $1,726.99.

COMEX gold futures for August delivery ended up 19.1 dollar, or 1.10 percent, at $1,739.80 an ounce.

Because of fears of COVID – 19 cases of infection increases will lead to oil demand growth, after the federal reserve released bleak economic outlook, unease in the market, prices on Thursday (June 11) fell sharply: July U.S. WTI crude futures fell $3.26, or 8.2%, to $36.34 a barrel, its biggest one-day fall since April. Brent crude for August delivery fell $3.18, or 7.7 percent, to $38.55 a barrel.

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