Market Wrap: Stocks, Bonds, Commodities
Wall Street shares closed higher Tuesday on growing optimism that U.S. lawmakers are nearing a deal on a stimulus package aimed at cushioning the economic shock from the coronavirus pandemic.
The Dow Jones Industrial Average closed up 113.37 points (0.40%) to 28,308.79, the S&P 500 ended 16.2 points higher (0.47%) to 3,443.12 and the Nasdaq Composite closed 37.51 points higher (0.33%) to 11,516.49.
Asian stocks were set for modest gains on Wednesday after renewed U.S. stimulus hopes helped Wall Street higher, although wobbles in the tech sector could keep a lid on investor sentiment.
MSCI’s index of Asia-Pacific stocks outside Japan gained 0.60% to 751.90 levels. Australian index rose 0.12% to 6,191.80. Japanese Nikkei up 0.31% to 23,567.10.
European stocks were lower on Wednesday, with the Stoxx Europe 50 Index fell 0.27% to 3,218.35, Germany’s DAX down 0.36% to 12,690.50 and France’s CAC lost 0.31% to 4,913.50 and U.K.’s FTSE 100 down 0.47% to 5,861.45.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield surged 3.41% to 0.824.
Oil prices fell on Wednesday after a surprise climb in U.S. crude stockpiles added to concerns about a global supply glut as a spike in global COVID-19 cases fuels demand fears and production returns in Libya.
Spot Brent crude Oil fell 1.10% to $42.69 per barrel. US West Texas Intermediate crude lost 1.03% to $41.27 a barrel.
The yellow metal traded 0.40% higher to 1918.80 dollar per ounce.
Market Wrap: Forex
The dollar hit a one-month low on Wednesday as investors who are optimistic about a pre-election U.S. stimulus package sought out riskier currencies, while the strong recovery in China’s economy helped drive the yuan to a two-year high.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lower 0.26% to 92.800.
The euro struggled to rise above the $1.18000 level on Tuesday as fading hopes for a U.S. coronavirus aid package dealt a blow to risky assets worldwide, with rising coronavirus infections in Europe also weighing on the single currency.
The Japanese yen rose against the U.S. dollar on Wednesday as stock pushes lower. Today US/JPY down 0.34% to 105.140 level.
Other commodity related currency higher against U.S dollar, AUD/USD advance 0.40% to 0.70740 and NZD/USD gained 0.51% to 0.66120.
EUR/USD Intraday: Trend upside
Our pivot point is at 1.18390
Preferable Price Action: Take Long positions above level with targets at 1.18800 & 1.19100 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.17990 & 1.17680.
Comment: Pair above its 55MA & 20MA 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 produced
GBP/USD Intraday: Break resistance levels
Our pivot point is at 1.29690
Preferable Price Action: Long positions above pivot with targets at 1.30180 & 1.30480 in extension.
Alternative Price Action: Price Below pivot would call for further downside to 1.29180 & 1.28880.
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: Trend on downside
Our pivot point is at 105.350
Preferable Price Action: Short position below pivot with the target at 105.080 and 104.900 in extension.
Alternative Price Action: The upside breakout of pivot would call for 105.610 and 105.790.
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 0.70700
Preferable Price Action: Long positions above pivot with targets at 0.70950 & 0.71150 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.70460 & 0.70250 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: Trend upside
Our pivot point is at 41.15
Preferable Price Action: Buy crude above pivot with targets at 41.65 and 41.95 in extension.
Alternative Price Action: Below pivots sell Oil with 40.65 & 40.35 as targets.
Comment: Crude above Its 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
XAU/USD Intraday: Break resistance level
Our pivot point is at 1913.10
Preferable Price Action: Further upside to 1924.00 & 1929.10 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1901.90 and 1896.30.
Comment: MACD in positive territory and price above its 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 28,250.00
Our pivot point is at 28,250.00
Preferable Price Action: Take buy positions above pivot with targets at 28,470.00 & 28,600.00 in extension.
Alternative Price Action: Below 28,250.00 looks for further downside to 28,050.00 & 27,930.00.
Comment: Price 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 produced7