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Market News 【TOP1 Morning】Gold is back, and crude oil prices are high again! Euro soars, Nasdaq is doing well again

【TOP1 Morning】Gold is back, and crude oil prices are high again! Euro soars, Nasdaq is doing well again

StoneX analyst Rhona O'Connell: Economic stimulus speech and further weakening of the dollar provide more support for gold.

TOPONE Markets Analyst
2020-12-04
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Forex: The U.S. dollar plummeted to its lowest level in more than two and a half years on Thursday, the euro rose, signs of progress in the US fiscal stimulus plan, and optimism about vaccines made investors positive.

 

The US dollar index fell 0.3% to 90.72. It was as low as 90.504 during the session, the lowest since April 2018.

 

The euro against the U.S. dollar surged to $1.2174, the highest since April 2018, and reported at $1.2142 in late trading, up 0.2%.

 

The New Zealand dollar hit a two-and-a-half-year high of 0.71 against the U.S. dollar earlier in the session, and rose 0.23 late in the day%, quoted at 0.7080 US dollars.

 

The U.S. dollar hit its lowest level against the yen in more than a week, and fell 0.4% to 103.98 yen in late trading. The U.S. dollar fell 0.36% against the Swiss franc to 0.8917 Swiss francs, having fallen to its lowest level since January 2015.

 

Gold: The price of gold strengthened on Thursday as the U.S. dollar fell, and investors are hoping that negotiations on the US coronavirus assistance program will eventually achieve a breakthrough.

 

At the end of the US market, spot gold closed at US$1,480.87 per ounce, up US$10.43 or 0.57%. The highest intraday hit US$1843.87 per ounce and the lowest touched US$1,823.64 per ounce.

 

COMEX February gold futures closed up 0.6%, reported 1,841.10 US dollars per ounce.

 

Crude oil: The global benchmark Brent crude oil price rose 1% on Thursday, reaching its highest level since early March. Brent crude oil futures rose 0.46 U.S. dollars, and settled at 48.71 U.S. dollars per barrel, an increase of 1.0%; US crude oil futures rose 0.36 U.S. dollars, or 0.8%, to close at a one-week high of 45.64 U.S. dollars.

 

At the same time, major oil-producing countries agreed to only slightly increase production by 500,000 barrels per day starting in January. This means that the OPEC+ alliance formed by OPEC and Russia and other allies will reduce production by 7.2 million barrels per day, accounting for 7% of global demand, and the current reduction scale is 7.7 million barrels per day.

 

Paola Rodriguez-Masiu, senior oil market analyst at Rystad Energy, said, “The market is currently reacting positively. Oil prices have risen slightly because the extra supply of 500,000 barrels per day is not fatal to the balance of supply and demand.”

 

Stock market: US stock market Nasdaq index closed at a record high on Thursday, boosted by Tesla; but the S&P 500 index fell after reports that Pfizer PFE.N significantly reduced its target for launching a new crown vaccine. The Dow Jones Industrial Average .DJI rose 0.29% to close at 29,969.52 points; the S&P 500 Index .SPX fell 0.06% to 3,666.72 points. The Nasdaq index .IXIC climbed 0.23% to 12,377.18 points.

 

Tesla shares soared 5% after Goldman Sachs upgraded the stock to "Buy" before the company's stock was included in the S&P 500 Index. According to Refinitiv data, in terms of monetary value, Tesla is the most traded stock on Wall Street, with a trading volume of approximately $25 billion, more than twice that of the second-ranked Boeing Company.

 

Boeing BA.N’s stock price jumped after low-cost carrier Ryanair ordered an additional 75 737 MAX aircraft priced at $9 billion, providing the troubled American aircraft manufacturer with a business lifeline.

 

Focus:

21:30 (GMT + 8) U.S. unemployment rate in November

21:30 (GMT + 8) Changes in the number of non-agricultural employment in the United States in November


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