Market Wrap: Stocks, Bonds, Commodities
American major stock indices lost ground on Tuesday, with halted COVID-19 vaccine trials and an elusive U.S. stimulus agreement weighing on sentiment as third-quarter earnings season got underway. While all three major stock indexes closed in the red, Microsoft Corp and Amazon.com helped the mitigate the tech-heavy Nasdaq’s loss.
The Dow Jones Industrial Average down 158.04 points (0.55%) to 28,679.48, the S&P 500 lost 22.51 points (0.64%) to 3,511.71 and the Nasdaq Composite dropped 12.36 point (0.10%) to 11,863.90.
Asian equities were set to slip on Wednesday as halted COVID-19 vaccine trials and an elusive U.S. stimulus agreement weighed on investor sentiment, while the dollar rose from Tuesday’s three-week low as demand firmed for safe-haven assets.
MSCI’s index of Asia-Pacific stocks outside Japan down 0.27% to 749.10 levels. Australian index slipped 0.27% to 6,179.20. Japanese Nikkei gained 0.11% to 23,626.73.
European stocks were lower on Tuesday, with the Stoxx Europe 50 Index lost 0.57% to 3,279.20, Germany’s DAX down 0.91% to 13,018.99 and France’s CAC slipped 0.64% to 4,947.61 and U.K.’s FTSE 100 fell 0.53% to 5,969.71.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield jump 0.72% to 0.732.
World crude oil demand will rebound more slowly in 2021 than previously thought as coronavirus cases rise, OPEC said on October 13, adding to headwinds faced by the group and its allies in balancing the market.
Spot Brent crude Oil fell 0.40% to $42.30 per barrel. US West Texas Intermediate crude lost 0.45% to $40.05 a barrel.
The yellow metal traded 0.32% higher to 1896.90 dollars per ounce.
Market Wrap: Forex
The U.S. dollar held on to gains against most currencies on Wednesday as renewed questions about a coronavirus vaccine and lack of an agreement on additional U.S. fiscal stimulus prompted a shift to safer assets.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, higher 0.05% to 93.575.
The Euro US Dollar (EUR/USD) widely traded pair flat today. This left the pairing trading around $1.17440. GBP/USD down 0.29% to 1.28980.
The Japanese yen down against the U.S. dollar on Wednesday as stock pushes higher. Today US/JPY rose 0.10% to 105.550 level.
Other commodity-related currency higher against U.S dollar, AUD/USD advance 0.05% to 0.71640 and NZD/USD up 0.06% to 0.66520.
EUR/USD Intraday: Trend on the downside
Our pivot point is at 1.17610
Preferable Price Action: Take Short positions below level with targets at 1.17250 & 1.17050 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.17970 & 1.18170.
Comment: Pair below its 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
GBP/USD Intraday: Break support level
Our pivot point is at 1.29350
Preferable Price Action: Short positions below pivot with targets at 1.28680 & 1.28380 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.30010 & 1.30310.
Comment: Price 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
USD/JPY Intraday: Support at 105.340
Our pivot point is at 105.340
Preferable Price Action: Long position above pivot with the target at 105.700 and 105.900 in extension.
Alternative Price Action: The downside breakout of pivot would call for 104.970 and 104.780.
Comment: price above 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: Bias on the downside
Our pivot point is at 0.71850
Preferable Price Action: Short positions below pivot with targets at 0.71430 & 0.71200 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.72270 & 0.72500 as targets.
Comment: Pair below its 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
CRUDEOIL Intraday: Trend upside
Our pivot point is at 40.05
Preferable Price Action: Buy crude above pivot with targets at 40.70 and 41.10 in extension.
Alternative Price Action: Below pivots sell Oil with 39.45 & 39.05 as targets.
Comment: Crude below Its 20MA & 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: Trend downside
Our pivot point is at 1903.80
Preferable Price Action: Further downside to 1890.00 & 1883.00 level.
Alternative Price Action: If price gives upside breakout of a pivot, then price extends to 1916.90 and 1924.10.
Comment: MACD in negative territory and price below it’s 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 28,650.00
Preferable Price Action: Take buy positions above pivot with targets at 28,850.00 & 28,970.00 in extension.
Alternative Price Action: Below 28,650.00 looks for further downside to 28,460.00 & 28,340.00.
Comment: Price below its 55MA & 20MA 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 produced7