Financial markets daily

Last session market review

On May 5, the dollar closed up 0.33% at 99.83; Spot gold closed at $1704.70 an ounce, up 0.21%. U.S. stocks rose slightly, with the dow up 133 points; Crude rose sharply, with WTI crude closing up more than 20 per cent at $24.56 a barrel.

For the rest of the day, the focus will be on Australia’s march retail sales, euro zone retail sales for march, U.S. ADP employment in April and last week’s EIA data on U.S. crude inventories.

Fx: eur/usd 1.0839; The pound closed at 1.2435; The Australian dollar closed at 0.6430; The dollar closed at 106.54 yen; Us $1.4047; The dollar was last at 0.9726 Swiss francs.

Commodities: spot gold closed at $1704.70 an ounce; Comex gold ended at $1710.60 an ounce; Spot silver settled at $14.94 an ounce; Comex silver ended at $15.110 an ounce; Brent crude closed at $30.97 a barrel; NYMEX crude closed at $24.56 a barrel.

In the currency market

Euro: the euro fell for a second day, or 0.60%, to 1.0839, as the dollar continued to rally. On the technical plane, the pivot point of the currency pair is at 1.0862, the initial resistance to the exchange rate rise is at 1.0899, the further resistance is at 1.0962, and the key resistance is at 1.0998. The initial support of the exchange rate down at 1.0800, further support at 1.0763, more critical support at 1.0700.

Sterling: the pound fell for a third day, closing down 0.04% at $1.2435. On the technical plane, the pivot point of the currency pair is 1.2444, the initial resistance of the exchange rate upward is 1.2468, further resistance is 1.2507, and the key resistance is 1.2531. The initial support of the exchange rate down at 1.2406, further support at 1.2382, more critical support at 1.2344.

Yen: the dollar fell for a third straight day to close at 106.54, down 0.18%. On the technical level, the pivot point of the currency pair is 106.62, the initial resistance to the upward trend of the exchange rate is 106.81, the further resistance is 107.09, and the key resistance is 107.28. The initial support of the falling exchange rate is at 106.34, further support at 106.14, more critical support at 106.87.

The stock market

U.S. and European stocks: oil prices rose for a fifth straight session as investors bet on a U.S. economic reboot. After modest gains on Monday, U.S. stocks extended their gains Tuesday, with the dow Jones industrial average closing up 133.33 points, or 0.6%, at 23883.09. The s&p 500 was up 25.70 points, or 0.9 percent, at 2,868.44 after rising more than 400 points at one point. The nasdaq composite index rose 98.40 points, or 1.1%, to close at 8,809.12.

European stocks closed higher on Tuesday as investors focused on the gradual opening up of economies in Europe and elsewhere. The pan-European Stoxx 600 closed up 7.06 points, or 2.15 percent, at 335.50. Oil and gas energy stocks led the gains, rising more than 6 percent. Germany’s DAX closed up 264.00 points, or 2.52%, at 10730.80. Britain’s FTSE 100 closed up 97.82 points, or 1.70 percent, at 5,851.60. France’s CAC-40 index closed up 104.90 points, or 2.40 percent, at 4,483.13. Spain’s IBEX35 index closed up 72.70 points, or 1.09 percent, at 6,746.00. Italy’s FTSE closed up 363.89 points, or 2.14 percent, at 17,399.50. Europe’s Stoxx 50 index closed up 58.97 points, or 2.09%, at 2875.45.

The bond market

In the bond market, geopolitical tensions between the us and China appeared to ease as several us states rolled out plans to revive the economy, and us government bond yields rose: the yield on the benchmark 10-year Treasury note rose to 0.656%, while the yield on the 30-year note edged up to 1.322%.

Commodity markets

International spot gold Tuesday morning trading at $1,699.98 / oz, rose as high as $1,711.40 / oz, and touched as low as $1,690.73 / oz to close at $1,704.70, up $3.61, or 0.21 percent.

COMEX June gold futures closed down 0.2 percent at $1,710.60 an ounce.

Oil extended its rally on Tuesday: U.S. WTI crude for June delivery ended up $4.17, or 20.5 percent, at $24.56 a barrel, after briefly touching an intraday high of $24.84. That is the closest WTI crude has come to $25 since April 9; Brent crude for July delivery closed up $3.77, or 13.86 percent, at $30.97 a barrel. Despite the rally, prices are still well below where they were at the start of the year, with WTI down 60% from December 2019’s $61.06 a barrel and brent down 53% from last year’s $66.

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