Market Wrap: Stocks, Bonds, Commodities
Wall Street stocks closed higher on Monday and the S&P 500 was poised to clinch its biggest quarterly percentage gain since 1998 as investors hoped for a stimulus-backed economic rebound, while a surge in Boeing shares helped boost the blue-chip Dow.
The Dow Jones Industrial Average climbed 580.30 points (2.33%) to 25,595.70, the S&P 500 gained 44.25 points (1.46%) to 3,052.90 and the Nasdaq Composite added 117.10 points (1.20%) to 9,874.20.
Asian markets poised to follow Wall Street’s firm lead on Tuesday as the sentiment boost from upbeat US data outweighed the threat of rising COVID-19 infections in the world’s largest economy.
MSCI’s index of Asia-Pacific stocks outside Japan gain 0.45% to 648.20 levels. Australian index rose 1.43% to 5,897.90. Japan’s Nikkei advanced 1.27% to 22,274.50.
European stocks were higher on Monday, with the Stoxx Europe 50 Index gain 0.87% to 3,232.10, Germany’s DAX rose 1.18% to 12,232.12 and France’s CAC advance 0.73% to 4,945.46 and U.K.’s FTSE 100 rose 1.01% to 6,226.40.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield down 1.48% to 0.627.
Oil prices fell in early trade on Tuesday after weak Japanese industrial production data, not usually a market-moving factor, was enough to jangle trader nerves over a bumpy recovery in fuel demand as coronavirus pandemic restrictions ease.
Spot Brent crude oil slipped 0.55% to $41.63 per barrel. US West Texas Intermediate crude futures were fell 0.78% to $39.38 a barrel.
The yellow metal made a new high after eight years. Today, Bullion prices higher 0.30% to $1772.50 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 97.632.
The Euro US Dollar (EUR/USD) widely traded pair down by 0.22% today. This left the pairing trading around $1.12180.
The Japanese yen down against the U.S. dollar on Tuesday as stock pushes higher. Today US/JPY up 0.16% to 107.730 level.
Other commodity-related currency broadly lower against U.S dollar, AUD/USD lost 0.15% to 0.68560 and NZD/USD slipped 0.20% to 0.64080.
EUR/USD Intraday: Break Support level
Our pivot point is at 1.12290
Preferable Price Action: Take Short positions below level with targets at 1.11854 & 1.11603 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.12741 & 1.12971.
Comment: Pair below 20MA & 55MA 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
GBP/USD Intraday: Resistance at 1.23150
Our pivot point is at 1.123150
Preferable Price Action: Short positions below pivot with targets at 1.22435 & 1.22181 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.23814 & 1.24076.
Comment: Price below 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
USD/JPY Intraday: Bias on the upside
Our pivot point is at 107.560
Preferable Price Action: Long position above pivot with the target at 107.912 and 108.150 in extension.
Alternative Price Action: The downside breakout of pivot would call for 107.211 and 106.980.
Comment: Pair above 20MA & 55MA 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
AUD/USD Intraday: Resistance at 0.68860
Our pivot point is at 0.68860
Preferable Price Action: Short positions below pivot with targets at 0.68305 & 0.68053 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.69356 & 0.69899 as targets.
Comment: Pair below 55MA & 20MA 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: Price show Strength
Our pivot point is at 38.80
Preferable Price Action: Buy crude above pivot with targets at 39.91 and 40.40 in extension.
Alternative Price Action: Below pivots sell Oil with 37.70 & 37.19 as targets.
Comment: Crude above Its 55MA 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
XAU/USD Intraday: Support at 1766.40
Our pivot point is at 1766.40
Preferable Price Action: Further upside to 1776.14 & 1780.79 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1756.80 and 1751.77.
Comment: RSI above 50 level mark and price above its 20MA and 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: Resistance at 25770.00
Our pivot point is at 25770.00
Preferable Price Action: Take sell positions below pivot with targets at 25283.54 & 25034.60 in extension.
Alternative Price Action: Above 25770.00 looks for further upside to 26236.28 & 26472.25.
Comment: Price below 20MA 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 produced7