Financial Markets Daily

U.S. stocks ended lower on Wednesday as the dollar bounced back above the 93 mark and gold plunged more than 3 percent, falling more than $70 to trade below 1930.

The session will focus on U.S. preliminary data, the Federal Reserve Manufacturing index and minutes from the European Central Bank’s monetary policy meeting.

In the currency market

Euro: The euro fell against the dollar for the first time in seven days, closing down 0.75% at $1.1838. Technically, the pivot point of the currency is at 1.1873, the initial resistance to the upward movement of the exchange rate is at 1.1916, further resistance is at 1.1996, and the key resistance is at 1.2039. Initial support for the lower exchange rate is at 1.1793, further support at 1.1750, and more critical support at 1.1670.

Sterling: It fell against the dollar for the first time in five days, closing down 1.3093, or 1.08 per cent. Technically, the pivot point of the currency is at 1.3149, the initial resistance to its upward movement is at 1.3208, the further resistance is at 1.3326, and the key resistance is at 1.3385. The initial support is at 1.3031, further support is at 1.2972, and more critical support is at 1.2854.

Yen: USDJPY gained for the first time in four days, closing at 106.11, up 0.65%. Technically, the pivot point of the currency is at 105.78, the initial resistance to its upward movement is at 106.46, further resistance is at 106.83, and the key resistance is at 107.51. Initial support for the lower exchange rate is at 105.41, further support is at 104.72, and more critical support is at 104.35.

The stock market

On Wednesday, Apple briefly topped $2 trillion in intraday market value and its share price hit an all-time high. However, a more pessimistic outlook from the Fed sent stocks lower across the board: the S&P 500 fell 0.4 per cent to 3,374.85. The Dow Jones Industrial Average fell 85.19 points, or 0.3%, to 27,692.88. The Nasdaq Composite index fell 0.6% to 11,146.46.

London (Marketwatch) – European stocks closed higher on Wednesday, also stabilizing after a strong trading day on Wall Street as the S&P 500 and Nasdaq hit new highs. The Pan-European Stoxx 600 index closed up 2.40 points, or 0.65%, at 369.58. Germany’s DAX index closed up 95.57 points, or 0.74%, at 12,977.33. The FTSE 100 index closed up 35.36 points, or 0.58%, at 6,111.98. The Cac-40 closed up 39.17 points, or 0.79%, at 4,977.23. Spain’s IBEX35 index closed up 47.50 points, or 0.67%, at 7091.00. Italy’s FTSE closed up 209.79 points, or 1.06%, at 20055.40. In Europe, the Stoxx 50 index closed up 27.91 points, or 0.85%, at 3,317.55.

Commodity markets

Spot gold closed at $1928.71 an ounce, down $72.73, or 3.63 percent. On the day, spot gold hit as high as $2006.30 an ounce and as low as $1,924.35, a move of more than $80.

COMEX gold futures for December delivery ended down 2.1 percent at $1,970.30 an ounce.

Oil prices closed lower on Wednesday after a successful meeting of Opec’s Joint Ministerial Monitoring Committee (JMMC) left the Opec + agreement unchanged. U.S. WTI crude for September futures fell 16 cents to close at $42.96 a barrel. Brent crude for October delivery was down 25 cents at $45.21 a barrel.

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