Market Wrap: Stocks, Bonds, Commodities
Wall Street ended lower on Thursday following a late-session reversal, with Facebook weighing on the market after President Donald Trump said he would sign an executive order related to social media companies and would hold a news conference on China on Friday.
The Dow Jones Industrial Average slipped 147.75 points (0.60%) to 25,400.30, the S&P 500 down 0.22%, to 3,029.80 and the Nasdaq Composite declined 0.45%, to 9,369.20.
Asian stocks ended the week as well as the month of May on a mostly down note as tensions between the U.S. and China continue to rise, reducing investor risk appetite.
MSCI’s index of Asia-Pacific stocks outside Japan up 0.10% to 597.50 levels. Australian index plunged 1.63% to 5,755.70. Japan’s Nikkei led the way with a fell 0.20% to 21,877.89.
European stocks were higher on Thursday, with the Stoxx Europe 50 Index rose 1.43% to 3,094.47, Germany’s DAX gains 1.06% to 11,781.13 and France’s CAC advanced 1.76% to 4,771.39 and U.K.’s FTSE higher 1.21% to 6,218.79.
The bond market remains priced for maximum caution. Yields on benchmark 10-year U.S. Treasuries fell 3 basis points to 0.6705% on Friday. That is more than 100 basis points below where they began 2020. Yields fall when prices rise.
Oil prices edged lower on Friday after US inventory data showed lacklustre fuel demand in the world’s largest oil consumer while worsening US-China tensions weighed on global financial markets.
Spot Brent crude oil down 1.60% to $35.72 per barrel. US West Texas Intermediate crude futures were fell 0.78% to $33.19 a barrel.
Today, gold prices advanced 0.33% to $1719 per ounce.
Market Wrap: Forex
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lower 0.05% to 98.312.
The Euro US Dollar (EUR/USD) widely traded pair higher by 0.15% today. This left the pairing trading around $1.10920. The pound gain 0.20% to 1.23390.
The Japanese yen rose against the U.S. dollar on Friday as demand for safe currency rose. Today US/JPY lost 0.42% to 107.190.
Other commodity-related currency broadly edged higher against U.S dollar, AUD/USD rose 0.25% to 0.66520 and NZD/USD up 0.10% to 0.62090.
EUR/USD Intraday: Trend Upside
Our pivot point is at 1.10750
Preferable Price Action: Take Long positions above pivot level with targets at 1.11145 & 1.11349 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.10351 & 1.10122.
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 on the upside
Our pivot point is at 1.23200
Preferable Price Action: Long positions above pivot with targets at 1.23726 & 1.23976 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.22637 & 1.22375.
Comment: MACD in the positive zone and pair 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
JPY/USD Intraday: Bias on the downside
Our pivot point is at 107.350
Preferable Price Action: Short position below pivot with the target at 106.959 and 106.754 in extension.
Alternative Price Action: The upside breakout of pivot would call for 107.738 and 107.933.
Comment: Pair below 55MA & 20MA and RSI at oversold 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
AUD/USD Intraday: Resistance at 0.66750
Our pivot point is at 0.66750
Preferable Price Action: Short positions below pivot with targets at 0.66371 & 0.66120 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.67130 & 0.67376 as targets.
Comment: MACD in the negative 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: support at 32.75
Our pivot point is at 32.75
Preferable Price Action: Buy crude above pivot with targets at 33.78 and 34.29 in extension.
Alternative Price Action: Below pivots sell Oil with 31.73 & 31.21 as targets.
Comment: MACD in the negative zone and price above 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: Bias on the upside
Our pivot point is at 1712.00
Preferable Price Action: Further upside to 1724.02 & 1728.55 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1700.34 and 1695.59.
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 down
Our pivot point is at 25550.00
Preferable Price Action: Take sell positions below pivot with targets at 25156.63 & 24960.78 in extension.
Alternative Price Action: Above 25550.00 looks for further upside to 25838.08 & 26028.57.
Comment: Index below 20MA & 55MA and also 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 produced7