Market Wrap: Stocks, Bonds, Commodities
US stocks rose sharply on July 6 as a rebound in services industry activity in June and expectations of a revival in China’s economy boosted optimism, helping investors to look past a surge in new coronavirus cases in the United States.
The ISM Non-Manufacturing Purchasing Managers Index (PMI) for June read 57.1, exceeding analyst forecasts and the previous month’s figure of 45.4.
The Dow Jones Industrial Average rose 459.67 points (1.78%) to 26,287.03, the S&P 500 gained 49.71 points (1.59%) to 3,179.72 and the Nasdaq Composite added 226.02 points (2.21%) to 10,433.65.
Asian markets looked set to rise on July 7 as investors weighed growing expectations of an economic rebound in China and a resurgent US services industry, brushing off worries about a spike in US coronavirus cases.
MSCI’s index of Asia-Pacific stocks outside Japan lost 0.37% to 681.30 levels. Australian index slipped 0.10% to 6,012.90. Japan’s Nikkei fell 0.44% to 22,614.69.
European stocks were higher on Thursday, with the Stoxx Europe 50 Index gain 1.69% to 3,350.10, Germany’s DAX rose 1.64% to 12,733.45 and France’s CAC advance 1.49% to 5,081.51 and U.K.’s FTSE 100 up 2.09% to 6,285.94.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield down 2.63% to 0.666.
Oil prices cautiously rose in early trade, with major producers sticking to supply cuts but gains were capped as US coronavirus cases surged, potentially hampering a recovery in fuel demand.
Spot Brent crude oil fell 1.10% to $42.63 per barrel. US West Texas Intermediate crude futures were down 1.16% to $40.16 a barrel.
Today, Bullion prices advance 0.20% to $1785.25 per ounce.
Market Wrap: Forex
The dollar index was rose on Tuesday, reversing its earlier losses as investors turn to the safe-haven asset as COVID-19 cases keep mounting.
The Euro US Dollar (EUR/USD) widely traded pair flat today. This left the pairing trading around $1.13070.
The Japanese yen down against the U.S. dollar on Tuesday as stock pushes higher. Today US/JPY rose 0.20% to 107.530 level.
Other commodity related currency broadly lower against U.S dollar, AUD/USD lost 0.25% to 0.69550 and NZD/USD down 0.12% to 0.65450.
EUR/USD Intraday: Break Resistance level
Our pivot point is at 1.12870
Preferable Price Action: Take Long positions above level with targets at 1.13244 & 1.13495 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.12486 & 1.12230.
Comment: Bias on the upside.
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 1.25200
Our pivot point is at 1.25200
Preferable Price Action: Short positions below pivot with targets at 1.24703 & 1.24450 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.25668 & 1.25899.
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 107.300
Preferable Price Action: Long position above pivot with the target at 107.803 and 108.034 in extension.
Alternative Price Action: The downside breakout of pivot would call for 106.796 and 106.558.
Comment: Pair above 55MA and MACD in the positive zone.
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: Trend upside
Our pivot point is at 0.69270
Preferable Price Action: Long positions above pivot with targets at 0.69680 & 0.69933 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.68858 & 0.68621 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: Trend may change to the downside
Our pivot point is at 40.80
Preferable Price Action: Sell crude below pivot with targets at 39.75 and 39.35 in extension.
Alternative Price Action: Above pivots buy Oil with 41.81 & 42.21 as targets.
Comment: Crude below Its 20MA & 55MA 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
XAU/USD Intraday: Strong Trend upside
Our pivot point is at 1777.15
Preferable Price Action: Further upside to 1786.84 & 1791.08 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1767.06 and 1762.62.
Comment: RSI above 50 level mark and price above its 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 25980.00
Preferable Price Action: Take buy positions above pivot with targets at 26366.99 & 26564.86 in extension.
Alternative Price Action: Below 25980.00 looks for further downside to 25592.94 & 25400.88.
Comment: Price above 55MA & 20MA 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 produced7