Market Wrap: Stocks, Bonds, Commodities
The S&P 500 index closed lower on Wednesday as mounting U.S. layoffs in the wake of newly mandated lockdowns to contain surging COVID-19 infections dampened investor risk appetite.
The Dow Jones Industrial Average fell 173.77 points (0.58%) to 29,872.47, the S&P 500 lost 5.76 points (0.16%) to 3,629.65; and the Nasdaq Composite added 57.08 points (0.47%) at 12,094.40.
Asian shares dipped slightly on Thursday as the hot run-up in global markets took a breather, with investors switching their focus from vaccine hopes to disappointing U.S. jobs data and new COVID-19 lockdowns.
MSCI’s index of Asia-Pacific stocks outside Japan advance 0.82% to 806.20 levels. Australian index advances 0.59% to 6,683.30. Japanese Nikkei climbed 0.50% to 26,296.86.
European stocks were higher on Thursday, with the Stoxx Europe 50 Index rose 0.10% to 3,514.90, Germany’s DAX advanced 0.05% to 13,293.00 and France’s CAC flat to 5,570.37 and U.K.’s FTSE 100 slipped 0.43% to 6,363.45.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield down 0.05% to 0.886.
U.S. oil rose for a fifth day on Thursday as a surprise drop in crude inventories extended a rally driven by hopes that vaccines would end the coronavirus pandemic and revive fuel demand.
Spot Brent crude Oil lose 1.65% to $47.73 per barrel. US West Texas Intermediate crude fell 1.66% to $44.97 a barrel.
The yellow metal traded 0.38% higher to 1814.10 dollars per ounce.
Market Wrap: Forex
The dollar was on the defensive on Thursday as downbeat U.S. economic data and optimism about coronavirus vaccines prompted investors to seek out riskier assets tied to global commodities and emerging markets.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell 0.05% to 91.920.
The Euro US Dollar (EUR/USD) widely traded pair rose 0.10% today. This left the pairing trading around $1.19240.
The Japanese yen rose against the U.S. dollar on Thursday as stock pushes lower. Today US/JPY down 0.20% to 104.240 level.
Other commodity related currency flat against U.S dollar, AUD/USD flat to 0.73650 and NZD/USD lost 0.06% to 0.69980.
EUR/USD Intraday: Support at 1.19060
Our pivot point is at 1.19060
Preferable Price Action: Take Long positions above pivot level with targets at 1.19440 & 1.19655 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.18820 & 1.18580.
Comment: Pair 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 produced
GBP/USD Intraday: Resistance at 1.33860
Our pivot point is at 1.33860
Preferable Price Action: Long positions above pivot with targets at 1.34220& 1.34500 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.33430 & 1.33130.
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 the downside
Our pivot point is at 104.400
Preferable Price Action: Short position below pivot with the target at 104.151 and 104.020 in extension.
Alternative Price Action: The downside breakout of pivot would call for 104.151 and 104.020.
Comment: price below its 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 0.73540
Our pivot point is at 0.73540
Preferable Price Action: Long positions above pivot with targets at 0.73810 & 0.74010 in extension.
Alternative Price Action: Belove pivot looks for further downside with 0.73210 & 0.72980 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 change to down
Our pivot point is at 44.80
Preferable Price Action: Belove pivots sell Oil with 44.55 & 43.95 as targets.
Alternative Price Action: Buy crude above pivot with targets at 46.41 and 46.95 in extension.
Comment: Crude 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
XAU/USD Intraday: Support at 1807.40
Our pivot point is at 1807.40
Preferable Price Action: Further upside to 1824.00 & 1835.85 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1788.70 and 1776.20.
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 29,958.00
Preferable Price Action: Take sell positions below pivot with targets at 29,810.50 & 29,707.00 in extension.
Alternative Price Action: Above 29,958.00 looks for further upside to 30,082.00 & 30,171.00.
Comment: Price 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 produced7