Last session market review
Day on the oil market panic has continued to spread, Brent crude oil tumbled 24% to below $20, U.S. crude June contract plummeted to single digits, the oil price collapse and bleak quarterly growing fears of a recession, U.S. stocks also fell, the dollar by safe-haven demand remain strong, gold fell nearly $40 to 1660 below, as investors rush to cash out.
On Thursday, keep an eye on the UK inflation gauge, the Canadian CPI, comments from the New York fed and changes in EIA crude inventories.
Fx: eur/usd 1.0856; The pound closed at 1.2285; The Australian dollar closed at 0.6280; The dollar closed at 107.79 yen; Us dollar/Canadian dollar closed at 1.4206; The dollar was last at 0.9696 Swiss francs.
Commodities: spot gold closed at $1, 685.90 an ounce; Comex gold ended at $1687.80 an ounce; Spot silver settled at $14.82 an ounce; Comex silver ended at $14.876 an ounce.
In the currency market
Euro: the euro fell for a second day, or 0.06%, to 1.0856 as the dollar extended its gains. On the technical plane, the pivot point of the currency pair is at 1.0851, the initial resistance to the upward movement of the exchange rate is at 1.0885, the further resistance is at 1.0914, and the key resistance is at 1.0948. The initial support of the exchange rate down at 1.0822, further support at 1.0788, more critical support at 1.0759.
Sterling: sterling/dollar fell for a second day, closing 1.28% lower at 1.2285. On the technical level, the pivot point of the currency pair is 1.2327, the initial resistance to the upward trend of the exchange rate is 1.2407, further resistance is 1.2524, and the key resistance is 1.2604. The initial support for the decline of the exchange rate is at 1.2211, further support at 1.2131, more critical support at 1.2015.
Yen: dollar/yen extended gains, closing 0.17% higher at 107.79. On the technical level, the pivot point of the currency pair is 107.64, the initial resistance to the upward trend of the exchange rate is 108.00, the further resistance is 108.25, and the key resistance is 108.61. The initial support of the falling exchange rate is at 107.39, further support at 107.04, more critical support at 106.79.
The stock market
U.S. and European stocks fell sharply again Tuesday, with the dow jones industrial average down 631.56 points, or more than 2.6%, at 23,018.88, as an unprecedented plunge in oil prices dented investor confidence and further dented the global economic outlook. In the previous session, the dow had fallen nearly 600 points. Tuesday’s drop took the dow down more than 1,200 points for the second straight day. The s&p 500 fell 2.7% to 2,736.56. The s&p 500 is down about 19% from its Feb. 19 record; The NASDAQ composite index fell 3.5% to 8,263.23.
London (MarketWatch) – volatility in the oil market and the development of a new epidemic are still on investors’ radar, with European stocks closing sharply lower on Tuesday, with all sectors and major markets closing below their flat lines. The pan-European Stoxx 600 index closed down more than 3 percent, led by the basic energy sector. Germany’s DAX closed down 423.45 points, or 3.97%, at 10252.45. Britain’s FTSE 100 closed down 173.96 points, or 2.99 percent, at 5,638.87. France’s CAC-40 index closed down 170.84 points, or 3.77 percent, at 4357.46. Spain’s IBEX35 index closed down 193.50 points, or 2.83 percent, at 6,638.00. Italy’s FTSE closed down 619.64 points, or 3.63 percent, at 16,444.50. Europe’s Stoxx 50 index closed down 119.15 points, or 4.10 percent, at 2,790.35.
International spot gold Tuesday morning trading at $1694.50 / oz, rose as high as $1697.30 / oz, touched as low as $1659.68 / oz, closed at $1685.90 / oz, down $8.92, or 0.53%.
COMEX crude for June delivery ended down $23.40, or 1.4 percent, at $1,687.80 an ounce.