Market Wrap: Stocks, Bonds, Commodities
U.S. stocks closed sharply higher on Wednesday as investors regained optimism that at least a partial deal on more U.S. fiscal stimulus may happen.
The Dow Jones Industrial Average rose 529.45 points (1.91%) to 28,302.21, the S&P 500 gained 58.38 points (1.74%) to 3,419.33 and the Nasdaq Composite added 210.00 points (1.88%) to 11,364.60.
Asian shares were set to track Wall Street gains on Thursday, as renewed hopes for more U.S. stimulus helped restore investor confidence in the New York session.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.40% to 736.40 levels. Australian index rose 1.09% to 6,102.00. Japanese Nikkei gained 0.96% to 23,647.07.
European stocks were higher on Thursday, with the Stoxx Europe 50 Index gain 0.10% to 3,235.50, Germany’s DAX rose 0.09% to 12,922.55 and France’s CAC advance 0.16% to 4,903.50 and U.K.’s FTSE 100 up 0.10% to 5,955.30.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield fell 1.03% to 0.777.
Oil prices fell nearly 2% on Wednesday after U.S. President Donald Trump dashed hopes for another stimulus package to boost the coronavirus-hit economy and after U.S. crude inventories rose in the most recent week.
Spot Brent crude Oil up 0.69% to $42.28 per barrel. US West Texas Intermediate crude advance 0.67% to $40.22 a barrel.
The yellow metal traded 0.37% higher to 1893.45 dollar per ounce.
Market Wrap: Forex
The dollar crept up on Thursday morning in Asia, with revived hopes for some U.S. spending improving sentiment and whetting investor appetite for riskier currencies.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lower 0.12% to 93.567.
The Euro US Dollar (EUR/USD) widely traded pair higher 0.14% today. This left the pairing trading around $1.17760. GBP/USD gained 0.22% to 1.29460.
The Japanese yen down against the U.S. dollar on Wednesday as stock pushes higher. Today US/JPY flat to 106.000 level.
Other commodity related currency higher against U.S dollar, AUD/USD advance 0.30% to 0.71590 and NZD/USD up 0.10% to 0.65850.
EUR/USD Intraday: Support at 1.17610
Our pivot point is at 1.17610
Preferable Price Action: Take Long positions above level with targets at 1.17980 & 1.18180 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.17240 & 1.17050.
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 upside
Our pivot point is at 1.29170
Preferable Price Action: Long positions above pivot with targets at 1.29780 & 1.30180 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.28570 & 1.28150.
Comment: Price above 20MA & 55MA and RSI above 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 produced
USD/JPY Intraday: Trend upside
Our pivot point is at 105.890
Preferable Price Action: Long position above pivot with the target at 106.190 and 106.390 in extension.
Alternative Price Action: The downside breakout of pivot would call for 105.590 and 105.390.
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 0.71350
Preferable Price Action: Long positions above pivot with targets at 0.71870 & 0.72130 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.70850 & 0.70590 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: Major support at 39.90
Our pivot point is at 39.90
Preferable Price Action: Buy crude above pivot with targets at 41.10 and 41.60 in extension.
Alternative Price Action: Below pivots sell Oil with 38.80 & 38.20 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 1883.40
Preferable Price Action: Further upside to 1903.20 & 1913.50 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1863.50 and 1853.20.
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: Support at 28,290.00
Our pivot point is at 28,290.00
Preferable Price Action: Take buy positions above pivot with targets at 28,700.00 & 28,900.00 in extension.
Alternative Price Action: Below 28,290.00 looks for further downside to 27,900.00 & 27,700.00.
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