The financial markets

Last trading session review

On Wednesday, the three major U.S. stock indexes closed at record highs, the strong U.S. dollar broke through the 99 barriers and spot gold edged closer to the 1560 level as markets took comfort from the drop in new confirmed cases and risk sentiment improved.

On Thursday, focus on the U.S. consumer price index and preliminary data, the U.S. senate’s confirmation hearing for fed governors Judy Shelton and Christopher Waller, speeches by the fed’s Kaplan and Williams, and the European central bank’s chief economist Alan lane.

Fx: eur/usd at 1.0873; GBP/usd closed at 1.2958; Australian dollar/us dollar 0.6736; Usd/jpy 110.08; Usd/cad closed at 1.3244; Dollar/Swiss franc closed at 0.9781.

Commodities: spot gold at $1565.65 / oz; Comex gold closed at $1,571.60 an ounce; Spot silver at $17.46 an ounce; Comex futures closed at $17.497 an ounce; Brent closed at $55.79 / BBL; NYMEX crude closed at $51.17 a barrel.

In the currency market

The euro/dollar opened at 1.0909 in New York, extending losses during the session, and was last trading around 1.0872. From a technical point of view, MACD green momentum is basically flat, KDJ index low flat, indicating that the short-term decline in the exchange rate is difficult to change. The initial resistance on the upward side of the exchange rate is 1.0911, the further resistance is 1.0948, and the key resistance is 1.0971. The initial support for the decline of the exchange rate was 1.0851, further support was 1.0828, and more critical support was 1.0790.

GBP/USD: this session opened at 1.2970, fell slightly during the session, and was last trading around 1.2958. From a technical point of view, MACD green momentum column continued to shrink, KDJ index low up gradually out of the oversold area, indicating that the exchange rate may be limited downward space. The initial resistance to the upward movement of the exchange rate is 1.3062, the further resistance is 1.3010, and the more critical resistance is 1.3029. The initial support for the decline of the exchange rate is located at 1.2941, further support is located at 1.2923, and more critical support is located at 1.2898.

Usd/jpy: this session opened at 110.00, the session was sideways consolidation, the last trading around 110.08. From the technical side, the MACD red kinetic energy column is basically flat, KDJ indicator overbought area again gold forked up, suggesting that the exchange rate rebound momentum released again. The initial resistance to the upward movement of the exchange rate is 110.24, the further resistance is 110.38, and the more critical resistance is 110.62. The initial support for the decline of the exchange rate was 109.85, further support was 109.62, and more critical support was 109.47.

The stock market

Us and European stocks: stocks rose to record highs on Wednesday as investors shrugged off concerns about how the coronavirus will affect corporate profits and the global economy. The dow jones industrial average rose 275.08 points, or 0.9 percent, to 29,551.42. The s&p 500 rose 0.6 percent to 3,379.45, while the NASDAQ gained 0.8 percent to 9,725.96.

The pan-European Stoxx 600 index closed 0.6 percent higher on Wednesday, with most sectors and stocks rising. European stocks ended higher Wednesday as traders kept a close eye on corporate earnings and the spread of the new coronavirus. The pan-European Stoxx 600 index temporarily closed 0.6 percent higher at a record high, with most sectors and major exchanges rising. Autos led the way, rising 3.8 percent, while utilities bucked the trend and fell 0.4 percent.

Commodity markets

U.S. WTI crude for March delivery closed up $1.23, or 2.5 percent, at $51.17 a barrel on Wednesday. Brent crude for April delivery closed up $1.78, or 3.3 percent, at $55.79 a barrel on Wednesday. The number of newly diagnosed cases of coronary pneumonia in China has begun to decline, helping bulls rebuild confidence by interpreting the outbreak as likely to have a smaller impact on oil demand than expected. U.S. WTI crude hit an intraday high of $51.73 a barrel, while Brent hit an intraday high of $56.26.

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