Market Wrap: Stocks, Bonds, Commodities
The S&P 500 retreated from a near six-month high in choppy trading on Friday with data showing a sharp slowdown in US employment growth, while US-China tensions escalated with President Donald Trump’s move to ban WeChat and TikTok.
The Dow Jones Industrial Average higher 0.17% to 27,433.48, the S&P 500 flat to 3,351.28 and the Nasdaq Composite slipped 0.87% to 11,010.98. The declines snapped the Nasdaq’s seven-session streak of gains.
Asian shares started cautiously on Monday as investors kept one eye on flaring tensions between the United States and China and another eye on U.S. fiscal stimulus after talks between the White House and Democrat lawmakers broke down.
MSCI’s index of Asia-Pacific stocks outside Japan gain 0.11% to 712.50 levels. Australian index rose 1.97% to 6,123.20. The Japanese market is closed today.
European stocks were higher on Friday, with the Stoxx Europe 50 Index rose 0.38% to 3,252.65, Germany’s DAX gained 0.66% to 12,674.88 and France’s CAC up 0.10% to 4,889.52 and U.K.’s FTSE 100 rose 0.09% to 6,032.18.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield gain 0.66% to 0.566.
Oil prices climbed in early trade on Monday, clawing back over half of Friday’s losses, on hopes for a stimulus deal to shore up the U.S. economic recovery and a pledge from Iraq to deepen its crude oil supply cuts.
Spot Brent crude oil climbed 1.00% to $44.84 per barrel. US West Texas Intermediate crude futures were rose 1.41% to $41.80 a barrel.
The yellow metal gained on Monday traded 0.60% higher to $2030.20 per ounce.
Market Wrap: Forex
The dollar advances against major currencies on Friday as better than expected payroll data and in hope of fiscal stimulus package.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lower 0.10% to 93.3385.
The Euro US Dollar (EUR/USD) widely traded pair higher by 0.06% today. This left the pairing trading around $1.17930.
The Japanese yen fell against the U.S. dollar on Monday as stock pushes higher. Today US/JPY fell 0.15% to 105.780 level.
Other commodity-related currency broadly higher against U.S dollar, AUD/USD up 0.10% to 0.71640 and NZD/USD higher 0.10% to 0.66080.
EUR/USD Intraday: Minor trend change to down
Our pivot point is at 1.18150
Preferable Price Action: Take Short positions below level with targets at 1.17645 & 1.17400 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.18646 & 1.18872.
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
GBP/USD Intraday: Trend downside
Our pivot point is at 1.30960
Preferable Price Action: Short positions below pivot with targets at 1.30300 & 1.30000 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.31589 & 1.31864.
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: Break resistance level
Our pivot point is at 105.660
Preferable Price Action: Long position above pivot with the target at 106.013 and 106.207 in extension.
Alternative Price Action: The downside breakout of pivot would call for 105.313 and 105.120.
Comment: price above 20MA & 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
AUD/USD Intraday: Break support level
Our pivot point is at 0.71500
Preferable Price Action: Long positions above pivot with targets at 0.71852 & 0.72080 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.71177 & 0.70956 as targets.
Comment: Pair below its 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 41.60
Our pivot point is at 41.60
Preferable Price Action: Buy crude above pivot with targets at 42.30 and 42.66 in extension.
Alternative Price Action: Below pivots sell Oil with 40.92 & 40.59 as targets.
Comment: Crude above Its 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
XAU/USD Intraday: Bias on the upside
Our pivot point is at 2025.00
Preferable Price Action: Further upside to 2040.92 & 2050.18 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 2009.95 and 2000.56.
Comment: RSI at 50 levels and price above its 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: Strong trend upside
Our pivot point is at 27415.00
Preferable Price Action: Take buy positions above pivot with targets at 27645.55 & 27770.04 in extension.
Alternative Price Action: Below 27415.00 looks for further downside to 27169.30 & 27045.84.
Comment: Price above 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 produced7