Last session market review
The dollar index.dxy rose 2 percent in the last session, but continued to hit 103.00 on the day. Spot gold ended down 0.99 percent at $1,472.30 an ounce in volatile trading. Major U.S. stock indexes also rose, with NASDAQ up 2.3 percent.
The rest of the session will focus on Germany’s February producer price index, Canada’s January retail sales, U.S. NAR’s seasonally adjusted existing home sales in February and a videoconference of EU finance ministers.
Fx: Eur/USD 1.0690; The pound closed at 1.1483; The Australian dollar closed at 0.5741; The dollar closed at 110.68 yen; Us $1.4508; The dollar was last at 0.9862 Swiss francs.
Commodities: spot gold closed at $1,471.46 an ounce; Comex gold ended at $1,479.30 an ounce; Spot silver settled at $12.10 an ounce; Comex silver ended at $12.134 an ounce; Brent crude settled at $28.47 a barrel; NYMEX crude settled at $25.22 a barrel.
In the currency market
Euro: euro/dollar continued to fall on Thursday, technical, euro/dollar will further decline. The kinetic energy is still going down. Support was at 1.08, which was Wednesday’s low. Then it hit a 2020 low of 1.0777.
Sterling: the pound/dollar rallied slightly in European trading on Thursday, with the technical side of the coin now entering an extremely volatile position, with the pound likely to fall to post-Brexit lows of 1.14-1.13 in panic.
Yen: dollar/yen rose significantly in European trading on Thursday. Technically, USD/JPY is expected to test 110.50 in the coming weeks. Upward momentum improvement, this exchange rate is expected to rise to 109.50. Support is at 107.70 and then 107.30.
The stock market
Us and European stocks: after a volatile session, European stocks ended higher on Thursday as investors closely watched the outbreak and digested new policy announcements from the European central bank and the bank of England. The pan-European Stoxx 600 indexes closed up 2.9 percent. Telecoms stocks led the way up 5 percent, while the basic resources sector fell 0.4 percent.
U.S. stocks ended higher Thursday, erasing sharp declines earlier in the day, as strong gains in big-cap technology stocks led to a sharp reversal. (earlier in the day, the dow was down 721 points, or more than 3%. At one point, the s&p 500 was down more than 3 percent.) The dow jones industrial average rose 188.27 points, or nearly 1%, to 20087.19. The s&p 500 rose 0.5% to 2,409.39; The NASDAQ composite index rose 2.3% to 7,150.58, outperforming the broader market. Shares of Netflix and Facebook rose 5.3% and 4.2%, respectively. Amazon shares rose 2.8 percent.
The bond market
Us Treasury yields fell on Thursday as central Banks took further steps to ease financial conditions to help countries deal with the coronavirus. The yield on the benchmark 10-year Treasury note fell 19 basis points to 1.06 percent, while the yield on the 30-year note fell 20 basis points to 1.68 percent.
International spot gold Thursday morning opened at $1485.30 an ounce, then fluctuated up $15 and hit a session high of $1500.41 an ounce before falling more than $35 from the high to a new session low of $1463.55. Around the opening of the European market, gold prices from the low sustained recovery above the $1,490 mark, but the rally failed to last, gold prices again encountered obstacles to fall back just above the session low. Gold rose slightly as the bulls resumed their charge in New York, then tumbled again to close at $1471.46 an ounce.
COMEX gold futures for April delivery edged up 0.1 percent to $1,479.30 an ounce.
U.S. WTI crude for April delivery closed up $4.85, or 23.8 percent, at $25.22 a barrel on Thursday. That was the biggest one-day gain since March 1983, according to Dow Jones markets. Brent crude for May delivery closed up $3.59, or 14.4 percent, at $28.47 a barrel on Friday. Investors are aware that central banks and governments have taken excessive support measures to deal with the economic impact of the coronavirus pandemic. Saudi Arabia and Russia are locked in a price war that has roiled energy and stock markets after oil-producing countries failed to reach an agreement in the early march on further limits to oil output. The Trump administration says it may intervene in the oil price war between Saudi Arabia and Russia.