Market Wrap: Stocks, Bonds, Commodities
Wall Street surged on Thursday as investors weighed the prospect of economic recovery against bellicose remarks from President Donald Trump regarding US-China trade and a whistleblower’s dire warnings about the US response to the coronavirus pandemic.
The Dow Jones Industrial Average surged 377.55 points (1.63%) to 23,626.32, the S&P 500 climbed 1.16% to 2,853.20 and the Nasdaq Composite rose 81.30 points (0.90%) to 8,943.80.
Asian stocks were set to rise on Friday amid investor optimism about the re-opening of the U.S. economy from coronavirus lockdowns and possibly more stimulus that could fuel a recovery.
MSCI’s index of Asia-Pacific stocks outside Japan down 0.16% to 595.30 levels. Australian index rose 1.43% to 5,404.80 and Japanese market higher 0.62% to 20,037.05.
European stocks were mixed on Friday, with the Stoxx Europe 50 Index declined 1.79% to 2,760.23, Germany’s DAX decline 1.95% to 10,337.02 and France’s CAC down 1.65% to 4,273.13 and U.K.’s FTSE 100 slipped 2.75% to 5,741.54.
Benchmark 10-year U.S. Treasury rose as demand for safe asset grow again, today 10-year bond yield down 0.86% to 0.614.
Oil prices were mixed on Friday after big gains a day earlier when the International Energy Agency (IEA) predicted crude stockpiles would start to shrink in second-half 2020 after surging while the coronavirus pandemic slashed fuel demand.
Spot Brent crude rose 3.40% to $31.19 per barrel. US West Texas Intermediate crude futures were up 2.61% to $28.28 a barrel.
Yesterday Yellow metal broke the narrow range and climbed 1% to $1734 per ounce. Today, gold prices up 0.26% to $1737 per ounce.
Market Wrap: Forex
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, down 0.11% to 100.400.
The Euro US Dollar (EUR/USD) widely traded pair lower by 0.10% today. This left the pairing trading around $1.07960. The pound traded 0.28% lower to 1.21930.
The Japanese yen rose against the U.S. dollar on Friday as demand for safe currency rose. Today US/JPY down 0.10% to 107.220.
Other commodity-related currency broadly edged lower against U.S dollar, AUD/USD slipped 0.15% to 0.64520 and NZD/USD lost 0.30% to 0.59840.
EUR/USD Intraday: Trend downside
Our pivot point is at 1.08100
Preferable Price Action: Take Short positions below pivot level with targets at 1.07728 & 1.07473 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.08459 & 1.08720.
Comment: pair belove 20MA & 55MA 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 downside
Our pivot point is at 1.22250
Preferable Price Action: Short positions below pivot with targets at 1.21699 & 1.21446 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.22780 & 1.23046.
Comment: MACD in the negative zone and pair below 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
JPY/USD Intraday: Bias on upside
Our pivot point is at 107.100
Preferable Price Action: Long position above pivot with the target at 107.470 and 107.718 in extension.
Alternative Price Action: The downside breakout of pivot would call for 106.728 and 106.481.
Comment: Pair above 55MA and RSI below 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
AUD/USD Intraday: Support at 0.64300
Our pivot point is at 0.64300
Preferable Price Action: Long positions above pivot with targets at 0.64720 & 0.64967 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.63878 & 0.63625 as targets.
Comment: MACD in thepositive zone and RSI at 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: Break consolidation zone
Our pivot point is at 28.05
Preferable Price Action: Buy crude above pivot with targets at 29.30 and 30.00 in extension.
Alternative Price Action: Below pivots sell Oil with 26.81 & 26.12 as targets.
Comment: RSI at oversold levels 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: Trend upside
Our pivot point is at 1729.00
Preferable Price Action: Further upside to 1741.47 & 1746.83 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1716.12 and 1710.55.
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: Bias on upside
Our pivot point is at 23400.00
Preferable Price Action: Take buy positions above pivot with targets at 23932.83 & 24183.05 in extension.
Alternative Price Action: Below 23400.00 looks for further downside to 22864.82 & 22617.65.
Comment: Inde above 20MA & 55MA and also 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 produced7