Market Wrap: Stocks, Bonds, Commodities
US stock indexes closed lower on Friday to cap Wall Street’s biggest weekly sell-off since March, as losses in richly priced tech heavyweights, a record rise in coronavirus cases and jitters over the presidential election snuffed investor sentiment.
The Dow Jones Industrial Average fell 157.51 points (0.59%) to 26,501.6. The S&P 500 lost 40.15 points (1.21%) to 3,269.96 and the Nasdaq Composite dropped 274.00 points (2.45%) to 10,911.59.
Asian markets rose on Monday morning trade, with data released over the weekend showing China’s manufacturing activity grew at a slightly slower rate in October.
MSCI’s index of Asia-Pacific stocks outside Japan down 0.70% to 737.30 levels. Australian index rose 0.40% to 5,951.30. Japanese Nikkei advance 1.39% to 22,295.48.
European stocks were lower on Friday, with the Stoxx Europe 50 Index fell 0.06% to 2,958.21, Germany’s DAX down 0.36% to 11,556.48 and France’s CAC gained 0.54% to 4,594.24 and U.K.’s FTSE 100 slipped 0.08% to 5,577.27.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield down 0.24% to 0.857.
Oil prices plunged more than 4% on Monday to the lowest levels since May on worries a swathe of coronavirus lockdowns across Europe will weaken fuel demand, while traders braced for turbulence during the U.S. Presidential election week.
Spot Brent crude Oil fell 3.93% to $36.47 per barrel. US West Texas Intermediate crude lost 4.53% to $34.17 a barrel.
The yellow metal traded 0.22% higher to 1883.50 dollar per ounce.
Market Wrap: Forex
The U.S. dollar held steady on Monday as investors readied for this week’s U.S. presidential election, while a surge in global coronavirus cases continued to weigh on sentiment.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose 0.17% to 94.200.
The euro has been selling since infection cases and lockdowns stood out in European countries. The Euro US Dollar (EUR/USD) widely traded pair down 0.15% today. This left the pairing trading around $1.16320.
The Japanese yen down against the U.S. dollar on Monday as stock pushes higher. Today US/JPY rose 0.16% to 104.810 level.
Other commodity related currency lower against U.S dollar, AUD/USD slipped 0.33% to 0.70040 and NZD/USD fell 0.24% to 0.66000.
EUR/USD Intraday: Trend on downside
Our pivot point is at 1.16580
Preferable Price Action: Take Short positions below level with targets at 1.16180 & 1.15980 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.17000 & 1.17200.
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
GBP/USD Intraday: Trend downside
Our pivot point is at 1.29250
Preferable Price Action: Short positions below pivot with targets at 1.28750 & 1.28500 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.29770 & 1.30020.
Comment: Price below 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
USD/JPY Intraday: Trend on upside
Our pivot point is at 104.580
Preferable Price Action: Long position above pivot with the target at 104.900 and 105.100 in extension.
Alternative Price Action: The downside breakout of pivot would call for 104.270 and 104.070.
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: Resistance at 0.70270
Our pivot point is at 0.70270
Preferable Price Action: Short positions below pivot with targets at 0.69760 & 0.69500 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.70790 & 0.71040 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: Strong trend on downside
Our pivot point is at 35.35
Preferable Price Action: Sell crude below pivot with targets at 34.10 and 33.40 in extension.
Alternative Price Action: Above pivots buy Oil with 36.60 & 37.30 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: Support at 1878.30
Our pivot point is at 1878.30
Preferable Price Action: Further upside to 1890.30 & 1896.10 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1866.50 and 1860.50.
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: Trend on the downside
Our pivot point is at 26,680.00
Preferable Price Action: Take sell positions below pivot with targets at 26,350.00 & 26,120.00 in extension.
Alternative Price Action: Above 26,680.00 looks for further upside to 27,020.00 & 27,250.00.
Comment: Price below its 20MA & 55MA 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