Market Wrap: Stocks, Bonds, Commodities
Wall Street dropped sharply on Thursday as investors fled market-leading tech shares due to mixed earnings reports and growing signs of a worsening coronavirus pandemic, which could exacerbate a deep economic recession.
The Dow Jones Industrial Average fell 353.51 points (1.31%) to 26,652.33, the S&P 500 lost 40.36 points (1.23%) to 3,235.66 and the Nasdaq Composite dropped 244.71 points (2.29%) to 10,461.42.
Asian markets are set to open mostly lower on Friday as China vowed to retaliate against a US order to close one of its consulates, and the American equity markets fell on gloomy data about its labour market.
MSCI’s index of Asia-Pacific stocks outside Japan slipped 1.74% to 686.20 levels. Australian index lost 1.16% to 6,024.50 Japanese markets closed today because of a national holiday.
European stocks were lower on Friday, with the Stoxx Europe 50 Index down 1.33% to 3,326.94, Germany’s DAX fell 1.59% to 12,895.25 and France’s CAC slipped 1.14% to 4,975.45 and U.K.’s FTSE 100 lost 1.07% to 6,146.10.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield fell 1.92% to 0.571.
Oil prices fell 2% on Thursday as investors worried the US Congress may not agree on a stimulus package and as jobless numbers rose, while analysts prepared to cut energy demand forecasts as the number of coronavirus cases surges higher.
Spot Brent crude oil rose 1.13% to $43.80 per barrel. US West Texas Intermediate crude futures were gain 1.19% to $41.56 a barrel.
The yellow metal gained on Friday traded 0.15% higher to $1892.50 per ounce.
Market Wrap: Forex
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, down 0.05% to 94.653.
The Euro US Dollar (EUR/USD) widely traded pair higher by 0.10% today. This left the pairing trading around $1.16000.
The Japanese yen rose against the U.S. dollar on Friday as stock pushes lower. Today US/JPY down 0.10% to 106.330 level.
Other commodity related currency broadly lower against U.S dollar, AUD/USD fell 0.25% to 0.70810 and NZD/USD lost 0.10% to 0.66270.
EUR/USD Intraday: Support at 1.15800
Our pivot point is at 1.15800
Preferable Price Action: Take Long positions above level with targets at 1.16256 & 1.16503 in extension.
Alternative Price Action: Below pivot level looks for further downside at 1.15353 & 1.15093.
Comment: Pair above 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
GBP/USD Intraday: Resistance 1.27510
Our pivot point is at 1.27510
Preferable Price Action: Short positions below pivot with targets at 1.26997 & 1.26740 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.27979 & 1.28244.
Comment: Price below 55MA & 20MA 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: Trend Downside
Our pivot point is at 106.600
Preferable Price Action: Short position below pivot with the target at 106.155 and 105.901 in extension.
Alternative Price Action: The upside breakout of pivot would call for 107.057 and 107.301.
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
AUD/USD Intraday: Resistance 0.71000
Our pivot point is at 0.71000
Preferable Price Action: Short positions below pivot with targets at 0.70543 & 0.70302 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.71451 & 0.71678 as targets.
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
CRUDEOIL Intraday: Support at 40.90
Our pivot point is at 40.90
Preferable Price Action: Buy crude above pivot level with targets at 41.85 and 42.35 in extension.
Alternative Price Action: Below pivots sell Oil with 39.93 & 39.44 as targets.
Comment: Crude above Its 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 produced
XAU/USD Intraday: at multi-year high
Our pivot point is at 1885.00
Preferable Price Action: Further upside to 1900.85 & 1907.44 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1869.79 and 1862.89.
Comment: MACD in positive zone and price above its 55MA & 20MA.
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: Minor trend on downside
Our pivot point is at 26700.00
Preferable Price Action: Take sell positions below pivot with targets at 26342.45 & 26153.64 in extension.
Alternative Price Action: Above 26700.00 looks for further upside to 27056.90 & 27243.68.
Comment: RSI at oversold levels 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 produced7