Market Wrap: Stocks, Bonds, Commodities
U.S. stocks ended sharply higher on Wednesday, with the S&P 500 at its highest since early June, following promising early data for a potential COVID-19 vaccine and a strong quarterly report from Goldman Sachs.
The Dow Jones Industrial Average gained 0.85% to end at 26,870.03 points, while the S&P 500 advance 0.91% to 3,226.55. The Nasdaq Composite higher 0.59% to 10,550.49.
Asian shares look set to continue a march upwards as optimism over a coronavirus vaccine carries weight over the ongoing spread of the disease and simmering U.S.-China tensions.
MSCI’s index of Asia-Pacific stocks outside Japan down 1.44% to 705.10 levels. Australian index lower 0.69% to 6,010.90. Japan’s Nikkei lost 0.76% to 22,770.35.
European stocks were higher on Wednesday, with the Stoxx Europe 50 Index gain 1.71% to 3,378.21, Germany’s DAX rose 1.84% to 12,930.98 and France’s CAC advance 2.03% to 5,108.98 and U.K.’s FTSE 100 up 1.83% to 6,292.65.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield fell 1.60% to 0.620.
Oil prices slid on Thursday after OPEC and allies such as Russia agreed to ease record supply curbs from August, though the drop was cushioned by hopes for a swift U.S. demand pick-up after a bigger-than-expected drawdown from the country’s crude stocks.
Spot Brent crude oil fell 0.84% to $43.52 per barrel. US West Texas Intermediate crude futures were down 1.40% to $40.88 a barrel.
The yellow metal declined on Wednesday traded 0.35% lower to $1806 per ounce.
Market Wrap: Forex
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, gained 0.12% to 96.155.
The Euro US Dollar (EUR/USD) widely traded pair lost 0.13% today. This left the pairing trading around $1.13950.
The Japanese yen down against the U.S. dollar on Tuesday as stock pushes higher. Today US/JPY flat to 106.970 level.
Other commodity related currency broadly lower against U.S dollar, AUD/USD slipped 0.30% to 0.69880 and NZD/USD lower 0.25% to 0.65550.
EUR/USD Intraday: Resistance at 1.42000
Our pivot point is at 1.14200
Preferable Price Action: Take Short positions below level with targets at 1.13711 & 1.13469 in extension.
Alternative Price Action: Above pivot level looks for further upside at 1.14678 & 1.14912.
Comment: Pair below 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
GBP/USD Intraday: Bias on the downside
Our pivot point is at 1.25670
Preferable Price Action: Short positions below pivot with targets at 1.25150 & 1.24909 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.26162 & 1.26403.
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: Support at 106.810
Our pivot point is at 106.810
Preferable Price Action: Long position above pivot with the target at 107.144 and 107.340 in extension.
Alternative Price Action: The downside breakout of pivot would call for 106.489 and 106.279.
Comment: Pair above 20MA 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: Bias on the upside
Our pivot point is at 0.69750
Preferable Price Action: Long positions above pivot with targets at 0.70122 & 0.70320 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.69400 & 0.69194 as targets.
Comment: Pair below 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
CRUDEOIL Intraday: support at 40.60
Our pivot point is at 40.60
Preferable Price Action: Buy crude above pivot level with targets at 41.35 and 41.65 in extension.
Alternative Price Action: Below pivots sell Oil with 39.84 & 39.53 as targets.
Comment: Crude above Its 55MA 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
XAU/USD Intraday: Resistance at 1813.45
Our pivot point is at 1813.45
Preferable Price Action: Further downside to 10801.91 & 1796.79 level.
Alternative Price Action: If price gives upside breakout of a pivot, then price extends to 1824.14 and 1828.91.
Comment: MACD in negative zone and price below 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: Support at 26,630
Our pivot point is at 26630.00
Preferable Price Action: Take buy positions above pivot with targets at 26948.59 & 27133.01 in extension.
Alternative Price Action: Below 26630.00 looks for further downside to 26314.73 & 26131.00.
Comment: Price above 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