Market Wrap: Stocks, Bonds, Commodities
The S&P 500 and the Dow fell on Wednesday as declines in financials and defensive groups countered gains in tech shares and as data showed U.S. private employers laid off 20 million workers in April, underscoring the economic fallout of the coronavirus outbreak.
The Dow Jones Industrial Average plunged 218.45 points (0.89%) to 23,665.65 the S&P 500 declined 0.69% to 2,848.43 and the Nasdaq Composite advanced 0.51% to 8,854.40.
Asian stocks were set to come under pressure on Thursday as downbeat economic data pushed investors to safe havens and growing worries about falling demand sent oil prices lower.
MSCI’s index of Asia-Pacific stocks outside Japan down 0.26% to 594.40 levels. Australian index down 0.39% to 5,364.20 Japanese market rose 0.28% to 19,674.77.
European stocks were mixed on Wednesday, with the Stoxx Europe 50 Index down 1.12% to 2,843.76, Germany’s DAX fell 1.15% to 10,606.20 and France’s CAC slipped 1.11% to 4,433.38 and U.K.’s FTSE 100 advanced 0.10% to 5,843.76.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield down 1.66% to 0.700.
Oil prices rose on Thursday after U.S. inventories swelled less than expected, but market watchers predicted further gains could be capped by the ongoing glut in crude supplies as the coronavirus pandemic crushes fuel demand.
Brent crude oil down 1.10% to $29.43 per barrel. while US West Texas Intermediate (WTI) crude down 1.50% to $23.63 per barrel.
The Yellow metal prices fall 1.10% yesterday. Today, gold prices flat to $1687 per ounce.
Market Wrap: Forex
According to the Reserve Bank of New Zealand survey, New Zealand’s both one and two-year inflation expectations plunged in the second quarter of 2020. so, we expect NZD strength further against the US dollar.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, higher 0.05% to 100.150.
The Euro US Dollar (EUR/USD) widely traded pair lower by 0.25% today. This left the pairing trading around $1.07980.
The Japanese yen rose against the U.S. dollar on Wednesday as demand for safe currency rose. Today US/JPY lower 0.30% to 106.200 level.
Other commodity-related currency broadly edged higher against U.S dollar, AUD/USD gained 0.60% to 0.64390 and NZD/USD added 0.30% to 0.60260.
EUR/USD Intraday: Trend may change
Our pivot point is at 1.08230
Preferable Price Action: Take long positions above pivot level with targets at 1.08723 & 1.09011 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.07725 & 1.07419.
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
GBP/USD Intraday: Bias remains upside
Our pivot point is at 1.23650
Preferable Price Action: Long positions above pivot with targets at 1.24206 & 1.24509 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.23110 & 1.22818.
Comment: The RSI indicator above 50 and pair above 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: Resistance at 106.500
Our pivot point is at 106.500
Preferable Price Action: Short position below pivot with the target at 106.104 and 105.841 in extension.
Alternative Price Action: The upside breakout of pivot would call for 106.884 and 107.131.
Comment: Pair below 55MA 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 upside
Our pivot point is at 0.65000
Preferable Price Action: Long positions above pivot with targets at 0.65607 & 0.65901 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.64437 & 0.64133 as targets.
Comment: MACD in the positive zone and RSI above 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 intake upside
Our pivot point is at 25.00
Preferable Price Action: Buy crude above pivot with targets at 26.78 and 27.84 in extension.
Alternative Price Action: Below pivots sell Oil with 23.29 & 22.20 as targets.
Comment: RSI above 50 level 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
XAU/USD Intraday: Support at 1710
Our pivot point is at 1710.00
Preferable Price Action: Further upside to 1722.30 & 1728.68 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1698.11 and 1691.48.
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 upside
Our pivot point is at 24050.00
Preferable Price Action: Take buy positions above pivot with targets at 24442.39 & 24688.50 in extension.
Alternative Price Action: Below 24050.00 looks for further downside to 23662.14 & 23405.55.
Comment: Index above 20MA 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