Market Wrap: Stocks, Bonds, Commodities
Wall Street plunged on Monday after US crude futures turned negative for the first time ever and North Korean president health in critical condition.
The Dow Jones Industrial Average slipped 2.39% to end at 23,649 points, while the S&P 500 declined 1.80% to 2,824.10. The Nasdaq Composite fell 1.04% to 8,560.65.
Asia shares were poised to track a Wall Street tumble on Tuesday after US crude futures turned negative for the first time in history, crushed by a spectacular collapse in oil demand as the coronavirus pandemic derails the global economy.
MSCI’s index of Asia-Pacific stocks outside Japan dropped 2.18% to 583.50 levels. Australian index lost 2.60% to 5,215. Japan Nikkei fell 2.14% to 19,250.
European stocks were mixed on Thursday, with the Stoxx Europe 50 Index gained 0.73% to 2909.20, Germany’s DAX up 0.47% to 10,675.90 and France’s CAC rose 0.65% to 4,528.30 and U.K.’s FTSE 100 advanced 0.45% to 5,812.80.
Benchmark 10-year U.S. Treasury advanced as demand for safe asset grow again, today 10-year bond yield lost 2.60% to 0.610.
US crude oil futures collapsed below $0 on Monday for the first time in history, amid a coronavirus-induced supply glut, ending the day at a stunning minus $37.63 a barrel as desperate traders paid to get rid of oil. Brent crude, the international benchmark, also slumped, but that contract was nowhere near as weak because more storage is available worldwide.
It, however, rebounded on Tuesday, with US crude turning positive after trading below $0 for the first time ever, but gains were capped amid unresolved concerns about how the market can cope with fuel demand decimated by the coronavirus pandemic.
Brent crude oil down 0.70% to $28.300 per barrel. while US West Texas Intermediate (WTI) crude rose 5.04% to $22.26 per barrel.
The Yellow metal was down in the early morning on Tuesday as investors demand increase for a risky asset. Today, Yellow metal slipped 0.30% to $1690.5 per ounce.
Market Wrap: Forex
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose 0.15% to 100.210.
The Euro US Dollar (EUR/USD) widely traded pair lower by 0.18% today. This left the pairing trading around $1.08420.
The Japanese yen down against the U.S. dollar on Friday as stock pushes higher. Today US/JPY fell 0.20% to 107.470 level.
Other commodity-related currency broadly lower against U.S dollar, AUD/USD down 0.30% to 0.634170 and NZD/USD fell 0.60% to 0.60020.
EUR/USD Intraday: Bias remains bearish
Our pivot point is at 1.08450
Preferable Price Action: Take short positions below pivot level with targets at 1.08087 & 1.07760 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.08816 & 1.09148.
Comment: pair below 50MA & 20MA and MACD in negative territory.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
GBP/USD Intraday: Trend may change to downside
Our pivot point is at 1.24400
Preferable Price Action: Short positions below pivot with targets at 1.23630 & 1.23182 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.25143 & 1.25605.
Comment: The RSI indicator below 50 levels and pair below 20MA.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
JPY/USD Intraday: In consolidation zone
Our pivot point is at 107.750
Preferable Price Action: Short position below pivot with the target at 107.056 and 106.642 in extension.
Alternative Price Action: The upside breakout of pivot would call for 108.383 and 108.783.
Comment: Pair above 20MA & 55MA and MACD in positive territory.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
AUD/USD Intraday: Bias on downside
Our pivot point is at 0.63450
Preferable Price Action: Short positions below pivot with targets at 0.62711 & 0.62261 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.64169 & 0.64598 as targets.
Comment: MACD in negative zone and RSI at 50 level.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
CRUDEOIL Intraday: At 22 year low
Our pivot point is at 22.75
Preferable Price Action: Sell crude below pivot with targets at 20.38 and 19.41 in extension.
Alternative Price Action: Above pivots buy Oil with 24.95 & 25.96 as targets.
Comment: MACD in the positive zone and RSI above 50 level mark.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
XAU/USD Intraday: Break support level
Our pivot point is at 1702.00
Preferable Price Action: Further downside to 1676.28 & 1661.22 level.
Alternative Price Action: If price gives upside breakout of a pivot, then price extends to 1725.26 and 1740.68.
Comment: price break long support area and RSI at Oversold level
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
Dow Jones Intraday: Trend may change
Our pivot point is at 23650.00
Preferable Price Action: Take sell positions below pivot with targets at 23,046 & 22,607.34 in extension.
Alternative Price Action: Above 23,650.00 looks for further upside to 24,257.13 & 24,686.56.
Comment: Index above 20MA & 55MA and also MACD in positive side.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced