Financial Markets Daily

A market review of the previous session

Upbeat U.S. retail sales data on Tuesday reinforced growing views that the worst may be over for the U.S. economy, as risk sentiment continued to rally as the three major U.S. stock indexes closed higher for a third straight day, the dollar index closed above the 97 level and spot gold edged higher with limited gains.

The day will focus on the Powell hearing, U.S. building permits and housing starts, Canadian CPI and EIA crude inventories.

Forex: EUR/USD at 1.1262; GBP/USD at 1.2569; Australian Dollar closed at 0.6886 usd; Usd/JPY closed at 107.31; Usd/Cad closed at 1.3540; The dollar closed at 0.9513 Swiss franc.

Commodities: Spot gold at $1,726.14 an ounce; Gold futures at $1,726.14 an ounce on Comex. Spot silver closed at $17.44 an ounce; Silver futures closed at $17.652 an ounce on Comex. Brent crude was at $40.96 a barrel; NYMEX crude closed at $38.38 a barrel.

In the currency market

Euro: EurUSD turned lower, closing down 0.49% at 1.1262. On the technical front, the initial resistance to the upward movement of the exchange rate is at 1.1335, further resistance is at 1.1407, and key resistance is at 1.1460. The initial support is at 1.1209, further support is at 1.1155, and more critical support is at 1.1084.

Sterling: Sterling turned lower against the DOLLAR, closing 0.27% lower at 1.2569. On the technical front, the initial resistance to the upward movement of the exchange rate is at 1.2655, further resistance is at 1.2738, and key resistance is at 1.2790. The initial support is at 1.2519, further support is at 1.2467, and more critical support is at 1.2383.

Yen: DOLLAR/jPY fell for a second day, closing down 0.01 percent at 107.31. Technically, the initial resistance to the exchange rate upward is at 107.56, further resistance is at 107.81, and the key resistance is at 107.99. Initial support for the lower exchange rate is at 107.13, further support is at 106.95, and more critical support is at 106.70.

The stock market

U.S. and European stocks: U.S. stocks closed higher Tuesday, rising 526.82 points, or 2%, to 26,289.98, amid record retail sales, positive results from a possible coVID-19 treatment trial and hopes of more stimulus. The S&P 500 rose 1.9% to close at 3,124.74. The Nasdaq composite index rose 1.8% to 9,895.87.

Madrid (Marketwatch) – European stocks rose Tuesday (June 16) as investors reacted to the Fed’s latest announcement and news of a novel coronavirus lifesaving drug boosted risk appetite further. The Pan-European Stoxx 600 index closed up 10.24 points, or 2.90%, at 363.33. Construction led the way, with shares surging 4 per cent. Germany’s DAX index closed up 389.20 points, or 3.27%, at 12,300.55. The FTSE 100 index closed up 180.10 points, or 2.97%, at 6,244.80. The Cac-40 index in France closed up 136.74 points, or 2.84%, at 4,952.46. Spain’s IBEX35 index closed up 234.70 points, or 3.23%, at 7,494.00. Italy’s FTSE closed up 657.21 points, or 3.46%, at 19,626.50. In Europe, the Stoxx 50 index closed up 104.55 points, or 3.33%, at 3,240.95.

Commodity markets

Spot gold opened at $1,724.26 an ounce in Asia on Tuesday morning, rising as high as $1,732.70 and as low as $1,716.31 an ounce, up $1.90, or 0.11 percent, to settle at $1,726.14.

August gold futures on COMEX rose 0.5 percent to $1,736.50 an ounce.

Oil prices rose sharply on Tuesday on signs of a recovery in demand after the coVID-19 outbreak but fell back slightly before closing higher. U.S. WTI crude for July ended up $1.26, or 3.4%, at $38.38 a barrel. Brent crude for August delivery rose $1.24, or 3.1 percent, to $40.96 a barrel.

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