Market Wrap: Stocks, Bonds, Commodities
US major stock indices sold off sharply on Friday after President Donald Trump statement of new tariffs against China in response to the COVID-19 pandemic. All three major American indices closed down well over 2% and for the week they all lost ground.
The Dow Jones Industrial Average slipped 621.80 points (2.55%) to 23,724.20, the S&P 500 declined 82 points (2.82%) to 2,831, and the Nasdaq Composite fell 284.50points (3.2%) to 8,605.
Asian major markets traded lower on Monday, with the Japanese and Chinese market closed for holidays.
China has posted its first-quarter GDP contraction since such records began a generation ago, and report a plunge in April export orders last week.
MSCI’s index of Asia-Pacific stocks outside Japan down 2.93% to 588.70 levels. Australian index rose 1.41% to 5,319.80.
European stocks were lower on Monday, with the Stoxx Europe 50 Index fell 3.41% to 2,829.10, Germany’s DAX down 2.97% to 10,536.75 and France’s CAC slipped 0.87% to 4,415.22 and U.K.’s FTSE 100 lower 0.80% to 5,723.80.
Benchmark 10-year U.S. Treasury advanced as demand for safe asset grow again, today 10-year bond yield lower 3.22% to 0.619.
Crude Oil prices fell in the early morning on Monday, fear of US-China trade tension could hold back a world economic recovery even as coronavirus pandemic lockdowns start to ease in some countries.
Brent crude oil rose 8.34% to $26.600 per barrel. while US West Texas Intermediate (WTI) crude soared 15.14% to $19.28 per barrel.
The Yellow metal rose as demand for risky asset down. Today, gold prices higher 0.90% to $1705 per ounce.
Market Wrap: Forex
The dollar inched higher on Monday as a U.S.-China divide over the origin of the coronavirus put the brakes on optimism about an economic re-start as countries around the world ease restrictions.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, advanced 0.32% to 99.415.
The Euro US Dollar (EUR/USD) widely traded pair lower by 0.45% today. This left the pairing trading around $1.09380.
The Japanese yen rose against the U.S. dollar on Monday as stock pushes lower. Today US/JPY lower 0.20% to 106.800 level.
Other commodity-related currency broadly edged lower against U.S dollar, AUD/USD down 0.40% to 0.63390 and NZD/USD slipped 0.50% to 0.60370.
EUR/USD Intraday: Trend Upside continues
Our pivot point is at 1.09000
Preferable Price Action: Take long positions above pivot level with targets at 1.09756 & 1.10104 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.08282 & 1.07934.
Comment: pair below 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: Resistance at 1.24800
Our pivot point is at 1.24800
Preferable Price Action: Short positions below pivot with targets at 1.24122 & 1.23769 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.25454 & 1.25817.
Comment: The RSI indicator at oversold level and pair below 50MA & 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 a consolidation zone
Our pivot point is at 106.600
Preferable Price Action: Long position above pivot with the target at 107.102 and 107.445 in extension.
Alternative Price Action: The downside breakout of pivot would call for 106.104 and 105.769.
Comment: Pair above 20MA and RSI at 50 levels 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
AUD/USD Intraday: Bias on the downside
Our pivot point is at 0.64050
Preferable Price Action: Short positions below pivot with targets at 0.63546 & 0.63200 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.64546 & 0.64891 as targets.
Comment: MACD in the negative zone and RSI below 50 levels.
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: Trend Upside
Our pivot point is at 19.55
Preferable Price Action: Buy crude above pivot with targets at 21.36 and 22.35 in extension.
Alternative Price Action: Below pivots sell Oil with 17.74 & 16.70 as targets.
Comment: RSI at 50 level mark and price above 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
XAU/USD Intraday: Bias on upside
Our pivot point is at 1692.00
Preferable Price Action: Further upside to 1712.02 & 1720.08 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1673.88 and 1665.67.
Comment: RSI above 50 level mark and price above 20MA & 55MA.
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 to downside
Our pivot point is at 23750.00
Preferable Price Action: Take sell positions below pivot with targets at 23302.54 & 23002.43 in extension.
Alternative Price Action: Above 23750.00 looks for further upside to 24212.63 & 24505.36.
Comment: Index below 55MA and also MACD in negative 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