We recently noticed that some third-party companies and individuals impersonated the TOPONE Markets brand and illegally misappropriated our trademarks.

We Hereby Reiterate Our Statement:

  • TOPONE Markets does not provide discretionary account operation trading services, nor does it cooperate with other third-party vendors and/ or agents to provide such services.
  • TOPONE Markets staff will not promise to our customer the definite profit, please do not trust any kind of the profit promise or profit related picture, such as screenshot/ chat history, etc, all investment profit can be only viewed on our official website and application.
  • TOPONE Markets is a professional online trading platform with low spreads and zero handling fees. Be wary of any behavior that asks you for any fees directly and privately. TOPONE Markets does not charge a fee at any stage of its trading process or other fee.

If you have any questions or concerns, please feel free to reach us by clicking the "Online Customer Support" or send an email to our customer care team cs@top1markets.com. We will answer your questions and assist you promptly.

Understood
We use cookies to learn more about how you use our website and what we can improve. Continue to use our website by clicking "Accept". Details
Market News 【TOP1 Morning】Dollar pares gains after hitting four-month high, Gold slips, Oil tumbles 5%

【TOP1 Morning】Dollar pares gains after hitting four-month high, Gold slips, Oil tumbles 5%

Dow climbs 199 points in late-day rebound led by stocks benefiting from reopening; GameStop shakes off earnings slump, soars 50% to snap recent slide.

TOPONE Markets Analyst
2021-03-26
705

早报图片.jpg


Yesterday Market Review


Gold


Gold prices eased on Thursday as a stronger U.S. dollar overshadowed support from lower bond yields and worries that lockdowns across Europe would take a toll on the pace of economic recovery.


The spot gold closed at $1726.51 per ounce; the volatility within the day is $1721.57-$1745.36.


The silver closed at $24.989 the volatility within the day is $24.389-$25.170.


The dollar index rose to a four-month high against its rivals, making gold more expensive for holders of other currencies.    


"We are in a rough patch in terms of risk appetite in general; that could add some support to gold market, but right now the focus is on the dollar," said Saxo Bank analyst Ole Hansen.


"Gold prices need to break above $1,765/oz level to attract renewed momentum." 


Sentiment in wider financial markets remained weak as investors grew wary about the economic outlook following a new round of coronavirus restrictions in the euro zone and potential U.S. tax hikes.  


"With virus cases rising and lockdowns in Europe, the road to recovery might take a little longer, which is leading to lower yields," Hansen said.


Offering some respite to gold, U.S. Treasury yields dipped, with the market appearing to stabilise after benchmark yields reached one-year highs last week. 

   

Lower yields reduce the opportunity cost of holding non- interest bearing gold.


Forex 


The U.S. dollar reached a fresh four-month high before slashing its gains on Thursday, as yields on U.S. Treasuries dipped and investors' appetite for risk shrunk. 


The U.S. dollar index closed at 92.90; the volatility within the day is 92.52-92.94.


Yields on Treasuries crept down and stocks fell, with 10-year notes yielding 1.598 ahead of an auction on shorter-dated bonds on Thursday. Investors were shrugging off positive U.S. economic data showing that fewer-than-expected Americans filed new claims for unemployment benefits last week. 


Concerns about extended lockdowns in Europe also weighed on markets. German Chancellor Angela Merkel's decision to ditch plans for a lockdown over Easter did little to improve sentiment.


The euro was down 0.12% against the dollar, at $1.1800 , with analysts forecasting it could embrace the $1.16 range, as Europe's economic recovery from the pandemic lags.


The Australian and New Zealand dollars, which dropped in the previous two sessions, edged back up slightly against the U.S. dollar, but both were only up by around 0.1% on the day overall.


On Wednesday, U.S. Treasury Secretary Janet Yellen and Federal Reserve Chair Jerome Powell expressed their confidence in the U.S. recovery during a second day of testimony to Congress.

Oil


Oil prices fell on Thursday as a new round of coronavirus restrictions in Europe revived worries about demand, even as tug boats struggled to move a stranded container ship blocking crude oil carriers in the Suez Canal.


West Texas Intermediate crude settled at $58.303, the volatility within the day is $57.431-$60.841. International benchmark Brent crude closed at $61.489, the volatility within the day is $60.838-$64.077.


Both contracts jumped about 6% on Wednesday after a ship ran aground in the Suez Canal, one of the world's most important oil shipping routes. The Suez Canal Authority said on Thursday it had suspended traffic temporarily while eight tugs work to free the vessel.


"We believe that the incident mostly creates noise in the market and should remain without any lasting fundamental impact," said Norbert Rücker, analyst at Julius Baer bank.


Wood Mackenzie's vice president, Ann-Louise Hittle, said a few days of delays in crude or product travelling through the Suez Canal to Europe and the United States should not have a prolonged impact on prices in those markets.


The impact of the Suez Canal blockade on oil prices is also limited as the destination of most oil tankers is Europe, but European demand is currently weak due to a new round of lockdowns.


"If Europe was in a better state in its COVID-19 battle, then the disruption would possibly create a more prolonged issue but this is not the case. That is why traders today quickly corrected some of the previous day's gains," said Rystad Energy's analyst Bjornar Tonhaugen.


The technical manager of the ship said another effort to re-float the vessel will be undertaken later in the day after an earlier attempt failed. The salvage company said it might take weeks.


Given the persistent demand worries and falling prices, expectations are growing that the Organization of Petroleum Exporting Countries and allies, together called OPEC+, will roll over their current supply curbs into May at a meeting scheduled for April 1, four OPEC+ sources told Reuters.


"Oil markets are unlikely to renew their upward momentum aggressively until OPEC+'s next meeting in early April, which should leave production cuts unchanged," said Jeffrey Halley, senior market analyst at OANDA.


The global oil market was also under pressure as producers faced difficulties selling to Asia, especially China. Asian buyers instead took cheaper oil from storage while refinery maintenance has reduced demand, industry sources said.


A strong dollar also weighed on oil prices. 


Stocks


U.S. stocks staged a late-day comeback on Thursday, boosted by economic comeback plays as the market rebounded from a two-day losing streak.


The S&P 500 closed 0.5% higher at 3,909.52, wiping out a 0.9% intraday loss. The Dow Jones Industrial Average gained 199.42 points, or 0.6%, to 32,619.48 after losing as much as 348 points. The Nasdaq Composite also eked out a 0.1% gain to close at 12,977.68 as some major technology stocks reserved losses. Tesla rose 1.6%, while Apple closed in the green.


Stocks that are tied to a successful economic reopening such as airlines and cruise line operators led the intraday rebound. American Airlines and United gained more than 4% each, while Norwegian Cruise Line and Carnival both rose over 2%. Boeing climbed 3.3%.


GameStop snapped a five-day losing streak with a significant surge on Thursday, as shares of the video game retailer rose more than 50% and showed that their wild swings are not yet over.


The market experienced some weakness earlier in the day as Federal Reserve Chairman Jerome Powell hinted at one day starting to remove the stimulus that has boosted the market during the pandemic.


Some investors have been taking profits in their growth winners which led the market's rebound from the pandemic losses last year. Netflix has fallen 6.7% this month, while Tesla is down more than 5%. Pandemic winner Zoom Video has dropped nearly 16% in March.


Apple (AAPL-US) rose 0.42%; Facebook (FB-US) fell 1.21%; Alphabet (GOOGL-US) fell 0.0034%; Amazon (AMZN-US) fell 1.32%; Microsoft (MSFT-US) fell 1.33% .


"The weakness in technology stocks is undeniable, but it likely won't be a straight line down for the sector and there will be zigs and zags along the way," said David Bahnsen, chief investment officer at The Bahnsen Group. "Tech stock valuations are too high and are screaming for a correction."


Focus Today


17:00(GMT+8): Germany Ifo Business Climate (MAR), Forecast: 93.2, Previous: 92.4;


20:30(GMT+8): United States Core PCE Price Index YoY (FEB), Forecast: 1.5%, Previous: 1.5%;


22:00(GMT+8): United States Michigan Consumer Sentiment Final (MAR), Forecast: 83.6, Previous: 76.8;

Previous
Next

Bonus rebate to help investors grow in the trading world!

Need Assistance?

7×24 H

Download the APP for Free