Market Wrap: Stocks, Bonds, Commodities
The Dow and S&P closed higher on Monday with the Nasdaq posting slimmer gains on the eve of the U.S. presidential election, as investors girded for what could be big market swings this week.
The Dow Jones Industrial Average rose 423.45 points (1.60%) to 26,925.05, the S&P 500 gained 40.28 points (1.23%) to 3,310.24 and the Nasdaq Composite added 46.02 points (0.42%) to 10,957.61.
Asian shares looked set to climb on Tuesday as investors shrugged off U.S. election jitters and took hope in strong factory output data in China, Europe and the United States, although the dollar and gold firmed on political uncertainty.
MSCI’s index of Asia-Pacific stocks outside Japan rose 1.20% to 748.60 levels. Australian index rose 1.93% to 6,066.40. Japanese market closed on Tuesday.
European stocks were higher on Tuesday, with the Stoxx Europe 50 Index advance 0.60% to 3,036.55, Germany’s DAX rose 0.53% to 11,849.55 and France’s CAC gained 0.83% to 4,733.06 and U.K.’s FTSE 100 up 1.11% to 5,517.80.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield soared 1.65% to 0.862.
Oil prices slipped on Tuesday as concerns over surging coronavirus cases around the world and political uncertainty ahead of the U.S. election offset hopes that major producers would hold back from ramping up output.
Spot Brent crude Oil gained 0.62% to $39.22 per barrel. US West Texas Intermediate crude advance 0.98% to $37.19 a barrel.
The yellow metal traded 0.10% higher to 1893.20 dollar per ounce.
Market Wrap: Forex
The U.S. dollar hovered near a one-month high on Tuesday as investors opted for caution in the hours ahead of polls opening on election day in the United States.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell 0.33% to 93.838.
The euro has been selling since infection cases and lockdowns stood out in European countries. The Euro US Dollar (EUR/USD) widely traded pair rose 0.28% today. This left the pairing trading around $1.16730.
The Japanese yen down against the U.S. dollar on Tuesday as stock pushes higher. Today US/JPY down 0.10% to 104.610 level.
Other commodity related currency higher against U.S dollar, AUD/USD advanced 0.41% to 0.70820 and NZD/USD rose 0.37% to 0.66550.
EUR/USD Intraday: Trend on upside
Our pivot point is at 1.16450
Preferable Price Action: Take Long positions above level with targets at 1.16860 & 1.17060 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.16040 & 1.15840.
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: Support at 1.29150
Our pivot point is at 1.29150
Preferable Price Action: Long positions above pivot with targets at 1.29500 & 1.29700 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.28800 & 1.28600.
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: Bias on the downside
Our pivot point is at 104.800
Preferable Price Action: Short position below pivot with the target at 104.500 and 104.350 in extension.
Alternative Price Action: The upside breakout of pivot would call for 105.080 and 105.230.
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: Support at 0.70300
Our pivot point is at 0.70300
Preferable Price Action: Long positions above pivot with targets at 0.70660 & 0.70860 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.69950 & 0.69750 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: Support at 36.50
Our pivot point is at 36.50
Preferable Price Action: Buy crude above pivot with targets at 37.40 and 38.00 in extension.
Alternative Price Action: Below pivots sell Oil with 35.60 & 35.00 as targets.
Comment: Crude above Its 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: Support at 1888.40
Our pivot point is at 1888.40
Preferable Price Action: Further upside to 1898.70 & 1903.50 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1878.00 and 1873.00.
Comment: MACD in positive territory and price above its 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 26,940.00
Preferable Price Action: Take buy positions above pivot with targets at 27,250.00 & 27,400.00 in extension.
Alternative Price Action: Below 26,940.00 looks for further downside to 26,630.00 & 26,470.00.
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