Market Wrap: Stocks, Bonds, Commodities
U.S. stocks rose sharply on Monday, recovering from declines in the previous session, as investors viewed more fiscal stimulus as likely and after news President Donald Trump will leave the hospital where he is being treated for COVID-19.
The Dow Jones Industrial Average rose 465.83 points (1.68%) to 28,148.64, the S&P 500 gained 60.16 points (1.80%) to 3,408.6 and the Nasdaq Composite added 257.47 points (2.32%) to 11,332.49.
Asia’s stock markets edged higher on Tuesday, cautiously adding to gains made with an improvement in both U.S. President Donald Trump’s health and prospects for a U.S. stimulus package, while bonds and the dollar nursed losses.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.84% to 727.70 levels. Australian index rose 0.35% to 5,962.10. Japanese Nikkei gained 0.52% to 23,433.73.
European stocks were mixed on Tuesday, with the Stoxx Europe 50 Index down 0.10% to 3,217.45, Germany’s DAX flat to 12,832.75 and France’s CAC flat to 4,873.40 and U.K.’s FTSE 100 lower 0.23% to 5,929.45.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield soared 1.30% to 0.772.
Oil jumped more than 5% overnight and held there in Asia, supported by optimism surrounding Trump’s health and a supply squeeze as a strike shut six Norwegian offshore oil and gas fields.
Spot Brent crude Oil rose 0.40% to $41.44 per barrel. US West Texas Intermediate crude up 0.36% to $39.37 a barrel.
The yellow metal traded 0.20% lower to 1910.90 dollar per ounce.
Market Wrap: Forex
The recent surge in the U.S. dollar will last less than three months, according to a majority of foreign exchange strategists polled by Reuters who said the greenback would have a roller coaster ride in the run-up to the U.S. presidential election.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lower 0.06% to 93.493.
The Euro US Dollar (EUR/USD) widely traded pair higher 0.05% today. This left the pairing trading around $1.17870. GBP/USD flat to 1.29790.
The Japanese yen gained against the U.S. dollar on Tuesday as stock pushes higher. Today US/JPY down 0.05% to 105.670 level.
Other commodity related currency lower against U.S dollar, AUD/USD fell 0.38% to 0.71520 and NZD/USD slipped 0.26% to 0.66270.
EUR/USD Intraday: Trend on the upside
Our pivot point is at 1.17740
Preferable Price Action: Take Long positions above level with targets at 1.18090 & 1.18340 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.17380 & 1.17110.
Comment: Pair above its 55MA and RSI near 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: Major support at 1.29680
Our pivot point is at 1.29680
Preferable Price Action: Long positions above pivot with targets at 1.30100 & 1.30350 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.29250 & 1.29000.
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 produced
USD/JPY Intraday: Major support at 105.560
Our pivot point is at 105.560
Preferable Price Action: Long position above pivot with the target at 105.900 and 106.100 in extension.
Alternative Price Action: The downside breakout of pivot would call for 105.210 and 105.000.
Comment: price above 55MA & 20MA and MACD in positive 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 on upside
Our pivot point is at 0.71550
Preferable Price Action: Long positions above pivot with targets at 0.71950 & 0.72150 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.71180 & 0.70970 as targets.
Comment: Pair above its 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
CRUDEOIL Intraday: Trend on the downside
Our pivot point is at 38.60
Preferable Price Action: Sell crude below pivot with targets at 37.20 and 36.50 in extension.
Alternative Price Action: Above pivots buy Oil with 40.00 & 40.70 as targets.
Comment: Crude above Its 20MA & 55MA and MACD in positive 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: Bias on the upside
Our pivot point is at 1886.00
Preferable Price Action: Further upside to 1900.00 & 1908.00 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1872.00 and 1864.00.
Comment: MACD in negative territory and price below 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 the upside
Our pivot point is at 27,700.00
Preferable Price Action: Take buy positions above pivot with targets at 28,130.00 & 28,380.00 in extension.
Alternative Price Action: Below 27,700.00 looks for further downside to 27,270.00 & 27,010.00.
Comment: Price 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 produced7