Market Wrap: Stocks, Bonds, Commodities
The dollar slid and global equity markets rose on Tuesday on bets of increased stimulus if Joe Biden wins the U.S. presidential election against President Donald Trump, but gold prices edged higher on the potential for contested voting results.
The Dow Jones Industrial Average rose 2.06% to 27,480.10, the S&P 500 gained 1.78% to 3369.30 and the Nasdaq Composite added 1.85% to 11,160.60.
Asian share markets turned cautious on Wednesday, paring sharp early gains as results from the U.S. Presidential election hinted at a close race with no clear winner yet in sight.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.54% to 746.80 levels. Australian index slipped 0.10% to 6,062.10. Japanese market soared 1.72% to 23,965.20.
European stocks were higher on Tuesday, with the Stoxx Europe 50 Index advance 2.62% to 3,098.72, Germany’s DAX rose 2.55% to 12,088.98 and France’s CAC gained 2.44% to 4,805.61 and U.K.’s FTSE 100 up 2.33% to 5,786.77.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield plunged 10.36% to 0.790.
U.S. oil prices jumped more than 2% on Wednesday after industry data showed crude inventories in the United States dropped sharply and as investors awaited results from the tumultuous presidential election.
Spot Brent crude Oil gained 1.10% to $40.12 per barrel. US West Texas Intermediate crude advance 1.12% to $38.08 a barrel.
The yellow metal traded 0.90% lower to 1893.30 dollars per ounce.
Market Wrap: Forex
The U.S. dollar clawed back early losses against risk-sensitive currencies on Wednesday after preliminary results suggested President Donald Trump has a slight edge over Democratic challenger Joe Biden in Florida, a key battleground state.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose 0.60% to 94.130.
The Euro US Dollar (EUR/USD) widely traded pair fell 0.69% today. This left the pairing trading around $1.16310.
The Japanese yen down against the U.S. dollar on Wednesday as stock pushes higher. Today US/JPY rose 0.55% to 105.030 level.
Other commodities-related currency lower against U.S dollar, AUD/USD down 1.10% to 0.70860 and NZD/USD lost 0.90% to 0.66400.
EUR/USD Intraday: Trend on the downside
Our pivot point is at 1.16790
Preferable Price Action: Take Short positions below level with targets at 1.16200 & 1.15900 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.17370 & 1.17670.
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: Bias on the upside
Our pivot point is at 1.29590
Preferable Price Action: Long positions above pivot with targets at 1.30140 & 1.30450 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.29040 & 1.28710.
Comment: Price above 55MA & 20MA and RSI near 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 the upside
Our pivot point is at 104.810
Preferable Price Action: Short position below pivot with the target at 105.150 and 105.350 in extension.
Alternative Price Action: The downside breakout of pivot would call for 104.470 and 104.270.
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 downside
Our pivot point is at 0.71300
Preferable Price Action: Short positions below pivot with targets at 0.70650 & 0.70350 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.71890 & 0.72190 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: Support at 38.00
Our pivot point is at 38.00
Preferable Price Action: Buy crude above pivot with targets at 38.90 and 39.60 in extension.
Alternative Price Action: Below pivots sell Oil with 37.10 & 36.40 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: Bias on the upside
Our pivot point is at 1893.30
Preferable Price Action: Further upside to 1903.80 & 1910.00 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1882.70 and 1876.00.
Comment: MACD in negative territory and price below its 55MA & 20MA.
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 27,280.00
Our pivot point is at 27,280.00
Preferable Price Action: Take buy positions above pivot with targets at 27,650.00 & 27,900.00 in extension.
Alternative Price Action: Below 27,280.00 looks for further downside to 26,890.00 & 26,630.00.
Comment: Price above its 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