Market Wrap: Stocks, Bonds, Commodities
The S&P 500 closed barely in positive territory on Wednesday as an expected stimulus deal and falling jobless claims prompted investors to put their money into sectors most likely to benefit from the economy re-opening when it recovers from the global health crisis.
The Dow Jones Industrial Average rose 114.32 points (0.38%) to 30,129.83, the S&P 500 gained 2.75 points (0.07%) to 3,690.01 and the Nasdaq Composite dropped 36.80 points (0.29%) to 12,771.11.
Asian shares were set to rise on Thursday ahead of the Christmas break, as global investors cheered a potential Brexit deal and economic recovery prospects, largely ignoring U.S. President Donald Trump’s threat to veto a long-awaited COVID aid package.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.54% to 822.20 levels. Australian index gained 0.33% to 6,664.80. Japanese Nikkei advance up 0.54% to 26,668.35.
European stocks were mixed on Thursday, Germany’s DAX close today and France’s CAC up 0.10% to 5,533.12 and U.K.’s FTSE 100 advance 0.12% to 6,502.20.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield fell 0.90% to 0.946.
Oil prices rose more than 2% on Wednesday, boosted by draws in U.S. inventories of crude, gasoline and distillates that lifted investors’ hopes for some return in fuel demand.
Spot Brent crude Oil fell 0.10% to $51.20 per barrel. US West Texas Intermediate crude lost 0.08% to $48.08 a barrel.
The yellow metal traded 0.32% higher to 1880.00 dollar per ounce.
Market Wrap: Forex
The dollar was slipped on Thursday, with traders retreating from the safe-haven greenback and turning to the pound over expectations of an imminent Brexit deal that could help the U.K. avoid a turbulent economic rupture come January 1.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, slipped 0.22% to 90.140.
The Euro US Dollar (EUR/USD) widely traded pair rose 0.12% today. This left the pairing trading around $1.22000.
The Japanese yen down against the U.S. dollar on Thursday as stock pushes higher. Today US/JPY advance 0.10% to 103.650 level.
Other commodity related currency advance against U.S dollar, AUD/USD up 0.29% to 0.75940 and NZD/USD rose 0.14% to 0.71050.
EUR/USD Intraday: In consolidation
Our pivot point is at 1.21940
Preferable Price Action: Take Long positions above pivot level with targets at 1.22250 & 1.22450 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.21630 & 1.21430.
Comment: Pair above its 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 produced
GBP/USD Intraday: Trend on the upside
Our pivot point is at 1.35300
Preferable Price Action: Buy positions above pivot with targets at 1.35850 & 1.36250 in extension.
Alternative Price Action: Price Below pivot would call for further downside to 1.34730 & 1.34330.
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: Support at 103.500
Our pivot point is at 103.500
Preferable Price Action: Buy position above pivot with the target at 103.680 and 103.800 in extension.
Alternative Price Action: The downside breakout of pivot would call for 103.320 and 103.210.
Comment: price above its 20MA & 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
AUD/USD Intraday: Support at 0.75760
Our pivot point is at 0.75760
Preferable Price Action: Buy Positions above pivot with targets at 0.76100 & 0.76300 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.75410 & 0.75210 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 48.00
Our pivot point is at 48.00
Preferable Price Action: Above pivots buy Oil with 48.80 & 49.30 as targets.
Alternative Price Action: Sell crude below pivot with targets at 47.20 and 46.70 in extension.
Comment: Crude 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
XAU/USD Intraday: Support at 1871.70
Our pivot point is at 1871.70
Preferable Price Action: Further upside to 1882.00 & 1888.10 level.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1861.20 and 1855.10.
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: In consolidation zone
Our pivot point is at 30,120.00
Preferable Price Action: Take buy positions above pivot with targets at 30,300.00 & 30,430.00 in extension.
Alternative Price Action: Below 30,120.00 looks for further downside to 29,950.00 & 30,430.00.
Comment: Price above its 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