Market Wrap: Stocks, Bonds, Commodities
The benchmark S&P 500 closed barely higher on Tuesday while shares in smaller companies soared to record highs as investors favoured more economically-sensitive market segments as they bet on a recovery in 2021.
The Dow Jones Industrial Average rose 60 points (0.19%) to 31,068.69, the S&P 500 gained 1.58 points (0.04%) to 3,801.19 and the Nasdaq Composite added 36.00 points (0.28%) to 13,072.43.
Asian major stock indices mostly higher on Wednesday, tracking modest Wall Street gains as prospects of an eventual victory against coronavirus shored up recovery hopes, while tight supply expectations pushed oil prices to their highest in a year.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.41% to 891.30 levels. Australian index fell 0.90% to 6,690.00. Japanese Nikkei closed today.
European stocks were declined on Tuesday, with the Stoxx Europe 50 Index down 0.23% to 3,612.25, Germany’s DAX fell 0.10% to 13,924.35 and France’s CAC lost 0.21% to 5,650.45 and U.K.’s FTSE 100 slipped 0.74% to 6,746.95.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield jumped 2.87% to 1.167.
Oil prices gained more than 1% on Wednesday, with US crude rising for a seventh day after industry data showed a bigger than expected drop in inventories and investors shrugged off worsening developments in the pandemic.
Spot Brent crude Oil gained 1.47%% to $56.48 per barrel. US West Texas Intermediate crude rose 1.47% to $53.02 a barrel.
The yellow metal traded 0.45% higher to 1859.70 dollar per ounce.
Market Wrap: Forex
The dollar nursed losses on Wednesday as a retreat in U.S. yields sapped momentum from its recent rebound and investors cautiously resumed bets that it can resume sliding.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose 0.05% to 90.112.
The Euro US Dollar (EUR/USD) widely traded pair slipped 0.15% today. This left the pairing trading around $1.21890.
The Japanese yen down against the U.S. dollar on Wednesday as stock pushes higher. Today US/JPY rose 0.10% to 103.820 level.
Other commodity-related currency declined against U.S dollar, AUD/USD down 0.42% to 0.77280 and NZD/USD down 0.06% to 0.72110.
EUR/USD Intraday: Trend upside
Our pivot point is at 1.21990
Preferable Price Action: Take Long positions above pivot level with targets at 1.22370 & 1.22600 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.21620 & 1.21390.
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
GBP/USD Intraday: Strong Trend upside
Our pivot point is at 1.36630
Preferable Price Action: Buy positions above pivot with targets at 1.37120 & 1.37430 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.36140 & 1.35820.
Comment: Price 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
USD/JPY Intraday: Resistance at 103.840
Our pivot point is at 103.840
Preferable Price Action: Sell position below with the target at 103.420 and 103.180 in extension.
Alternative Price Action: The upside breakout of pivot would call for 104.260 and 104.520.
Comment: price below 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 0.77580
Our pivot point is at 0.77580
Preferable Price Action: Buy Positions above pivot with targets at 0.78000 & 0.78250 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.77170 & 0.76920 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: Bias on the upside
Our pivot point is at 53.45
Preferable Price Action: Above pivots buy Oil with 54.10 & 54.70 as targets.
Alternative Price Action: Sell crude below pivot with targets at 52.80 and 52.20 in extension.
Comment: Crude above its 20MA & 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 1851.40
Our pivot point is at 1851.40
Preferable Price Action: Further upside to 1869.70 & 1880.00.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1833.20 and 1822.40.
Comment: MACD in positive territory and price above 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 31,080.00 level
Our pivot point is at 31,080.00
Preferable Price Action: Take buy positions above pivot with targets at 31,220.00 & 31,320.00 in extension.
Alternative Price Action: Below 31,080.00 looks for further downside to 30,940.00 & 30,840.00.
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