Market Wrap: Stocks, Bonds, Commodities
Wall Street rallied to close sharply higher on Monday as investors sought bargains among sectors hardest-hit by the coronavirus recession, now limping toward its ninth month.
The Dow Jones Industrial Average rose 410.1 points (1.51%) to 27,584.06, the S&P 500 gained 53.14 points (1.61%) to 3,351.6 and the Nasdaq Composite added 203.96 points (1.87%) to 11,117.53.
Asian markets look set to rise on Tuesday, building on newfound momentum after bargain hunters helped a recovery in U.S. markets after last week’s selloff.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.16% to 716.20 levels. Australian index flat to 5,952.30. Japanese Nikkei rose 0.12% to 23,539.10.
European stocks were higher on Monday, with the Stoxx Europe 50 Index advance 2.75% to 3,223.20, Germany’s DAX rose 3.22% to 12,870.87 and France’s CAC gained 2.40% to 4,843.30 and U.K.’s FTSE 100 up 1.46% to 5,927.93.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield lost 1.05% to 0.656.
Oil prices fell on Tuesday as demand concerns driven by COVID-19 outweighed hopes that U.S. lawmakers and the White House were nearing an agreement on a new stimulus package to revive the world’s biggest economy.
Spot Brent crude oil slipped 0.72% to $42.56 per barrel. US West Texas Intermediate crude down 0.86% to $40.27 a barrel.
The yellow metal traded 0.33% higher to 1882.50 dollars per ounce.
Market Wrap: Forex
The dollar was steady against a basket of currencies on Tuesday as traders looked out to the first U.S. presidential debate and developments on the U.S. stimulus bill.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lower 0.05% to 94.267.
The Euro US Dollar (EUR/USD) widely traded pair up 0.12% today. This left the pairing trading around $1.16790. GBP/USD higher 0.20% to 1.28510.
The Japanese yen down against the U.S. dollar on Tuesday as stock pushes higher. Today US/JPY advanced 0.13% to 105.620 level.
Other commodity related currency higher against U.S dollar, AUD/USD gained 0.24% to 0.70870 and NZD/USD rose 0.14% to 0.65610.
EUR/USD Intraday: Trend upside
Our pivot point is at 1.16620
Preferable Price Action: Take Long positions above level with targets at 1.17000 & 1.17250 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.16240 & 1.15990.
Comment: Pair 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
GBP/USD Intraday: Bias on the upside
Our pivot point is at 1.28200
Preferable Price Action: Long positions above pivot with targets at 1.28800 & 1.29100 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.27600 & 1.27290.
Comment: Price 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
USD/JPY Intraday: Support at 105.470
Our pivot point is at 105.470
Preferable Price Action: Long position above pivot with the target at 105.860 and 106.060 in extension.
Alternative Price Action: The downside breakout of pivot would call for 105.090 and 104.900.
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
AUD/USD Intraday: Trend upside
Our pivot point is at 0.70740
Preferable Price Action: Long positions above pivot with targets at 0.71120 & 0.71320 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.70360 & 0.70150 as targets.
Comment: Pair above its 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 produced
CRUDEOIL Intraday: Support at 40.25
Our pivot point is at 40.25
Preferable Price Action: Buy crude above pivot with targets at 40.75 and 41.05 in extension.
Alternative Price Action: Below pivots sell Oil with 39.75 & 39.40 as targets.
Comment: Crude below Its 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
XAU/USD Intraday: Break resistance area
Our pivot point is at 1875.30
Preferable Price Action: Further upside to 1889.35 & 1896.10 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1861.20 and 1854.30.
Comment: MACD in positive territory and price above it’s 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 on upside
Our pivot point is at 27430.00
Preferable Price Action: Take buy positions above pivot with targets at 27700.00 & 27860.00 in extension.
Alternative Price Action: Below 27430.00 looks for further downside to 27160.00 & 26990.00.
Comment: Price above its 20MA & 55MA and RSI at overbought 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