Market Wrap: Stocks, Bonds, Commodities
Wall Street’s main indexes finished lower on Friday, weighed down by big U.S. banks after their earnings reports, while the energy fell sharply due to a regulatory probe into Exxon Mobil Corp.
The Dow Jones Industrial Average fell 177.26 points (0.57%) to 30,814.26, the S&P 500 lost 27.29 points (0.72%) to 3,768.25 and the Nasdaq Composite dropped 114.14 points (0.87%) to 12,998.50.
Asian shares pared early losses on Monday as data confirmed China’s economy had bounced back last quarter as factory output jumped, helping partially offset recent disappointing news on U.S. consumer spending.
MSCI’s index of Asia-Pacific stocks outside Japan fell 0.20% to 889.20 levels. Australian index fell 0.78% to 6,663.00. Japanese Nikkei traded 0.97% lower to 28,242.20.
European stocks were declined on Monday, with the Stoxx Europe 50 Index down 0.27% to 3,591.35, Germany’s DAX rose 0.10% to 13,801.10 and France’s CAC lost 0.17% to 5,602.76 and U.K.’s FTSE 100 slipped 0.05% to 6,732.55.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield declined 0.92% to 1.087.
Oil prices fell on Monday, extending losses that last week ended a rally driven by production cuts and strong Chinese demand, with the market’s recovery outlook being called into question as coronavirus infections rise.
Spot Brent crude Oil lost 0.27% to $54.95 per barrel. US West Texas Intermediate crude down 0.13% to $52.34 a barrel.
The yellow metal traded 0.16% higher to 1833.50 dollar per ounce.
Market Wrap: Forex
The dollar clung to gains on Monday and the Japanese yen edged higher as softening U.S. economic data and rising global coronavirus cases kept investors cautious, while lockdowns and Italian political turmoil held the euro under pressure.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose 0.15% to 90.892.
The Euro US Dollar (EUR/USD) widely traded pair slipped 0.13% today. This left the pairing trading around $1.20620.
The Japanese yen rose against the U.S. dollar on Monday as stock pushes higher. Today US/JPY fell 0.10% to 103.780 level.
Other commodity related currency declined against U.S dollar, AUD/USD down 0.43% to 0.76690 and NZD/USD down 0.46% to 0.71060.
EUR/USD Intraday: Trend downside
Our pivot point is at 1.21990
Preferable Price Action: Take Short positions below pivot level with targets at 1.20420 & 1.20120 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.21510 & 1.21810.
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: Strong Trend downside
Our pivot point is at 1.35710
Preferable Price Action: Sell positions below pivot with targets at 1.35110 & 1.34800 in extension.
Alternative Price Action: The price above pivot would call for further upside to 1.36340 & 1.36640.
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 produced
USD/JPY Intraday: Support at 103.710
Our pivot point is at 103.710
Preferable Price Action: Buy position above with the target at 103.950 and 104.150 in extension.
Alternative Price Action: The downside breakout of pivot would call for 103.470 and 103.270.
Comment: price at 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: Break support levels
Our pivot point is at 0.76980
Preferable Price Action: Sell Positions below pivot with targets at 0.76450 & 0.76150 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.77520 & 0.77820 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 51.85
Our pivot point is at 51.85
Preferable Price Action: Above pivots buy Oil with 52.75 & 53.20 as targets.
Alternative Price Action: Sell crude below pivot with targets at 51.00 and 50.55 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: Bias on the upside
Our pivot point is at 1831.50
Preferable Price Action: Further upside to 1845.00 & 1855.00.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1819.00 and 1809.00.
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: Trend on the downside
Our pivot point is at 30,850.00
Preferable Price Action: Take sell positions below pivot with targets at 30,680.00 & 30,550.00 in extension.
Alternative Price Action: Above 30,850.00 looks for further upside to 31,020.00 & 31,150.00.
Comment: Price below its 20MA & 55MA 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