Market Wrap: Stocks, Bonds, Commodities
U.S. stocks suffered their biggest one-day percentage drop in three months on Wednesday, adding to losses after the latest Fed statement as major indexes were also pressured by a slump in Boeing and a selling of long positions by hedge funds.
Apple Inc. shares fell more than 3% in extended trading after a cautious outlook from executives overshadowed quarterly revenue that topped $100 billion for the first time.
The Dow Jones Industrial Average fell 633.87 points (2.05%) to 30,303.17, the S&P 500 lost 98.85 points (2.57%) to 3,750.77 and the Nasdaq Composite dropped 355.47 points (2.61%) to 13,270.60.
Asian stocks skidded on Thursday following a sharp Wall Street decline amid deepening concerns about stretched valuations in equities markets, while the dollar and bonds strengthened.
MSCI’s index of Asia-Pacific stocks outside Japan fell 2.00% to 889.20 levels. Australian index fell 1.93% to 6,649.70. Japanese Nikkei traded 1.53% lower to 28,197.42.
European stocks were declined on Thursday, with the Stoxx Europe 50 Index down 0.68% to 3,512.61, Germany’s DAX slumped 1.00% to 13,482.40 and France’s CAC fell 0.43% to 5,435.94 and U.K.’s FTSE 100 down 1.20% to 6,488.95.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield lower 0.62% to 1.008.
Global oil demand is expected to rise by nearly 7% this year, boosted by quicker vaccine distribution and a better economic outlook, consultancy Wood Mackenzie said on Thursday.
Spot Brent crude Oil fell 0.18% to $55.44 per barrel. US West Texas Intermediate crude down 0.15% to $52.77 a barrel.
Market Wrap: Forex
The dollar extended gains against most currencies on Thursday as a stock market rout due to concerns about excessive valuations boosted safe-harbors demand for the U.S. currency.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, higher 0.05% to 90.662.
The euro nursed losses after a European Central Bank member warned that interest rate cuts are possible to curb the common currency’s recent gains. The Euro US Dollar (EUR/USD) widely traded pair flat today. This left the pairing trading around $1.21090.
The Japanese yen down against the U.S. dollar on Thursday as stock pushes lower. Today US/JPY rose 0.17% to 104.270 level.
Other commodity-related currency lower against U.S dollar, AUD/USD lost 0.62% to 0.76130 and NZD/USD lost 0.39% to 0.71300.
EUR/USD Intraday: Trend on the downside
Our pivot point is at 1.21190
Preferable Price Action: Take Short positions below pivot level with targets at 1.20750 & 1.20550 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.21630 & 1.21830.
Comment: Pair below its 55MA & 20MA an 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: Trend downside
Our pivot point is at 1.37030
Preferable Price Action: Sell positions below pivot with targets at 1.36370 & 1.36070 in extension.
Alternative Price Action: The price above pivot would call for further upside to 1.37680 & 1.37980.
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: Major trend on the upside
Our pivot point is at 104.190
Preferable Price Action: Buy position above with the target at 104.450 and 104.650 in extension.
Alternative Price Action: The downside breakout of pivot would call for 103.920 and 103.720.
Comment: price above 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
AUD/USD Intraday: Trend downside
Our pivot point is at 0.76550
Preferable Price Action: Sell Positions below pivot with targets at 0.75900 & 0.75600 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.77200 & 0.77500 as targets.
Comment: Pair 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 produced
CRUDEOIL Intraday: In a consolidation zone
Our pivot point is at 52.80
Preferable Price Action: Below pivots sell Oil with 52.10 & 51.70 as targets.
Alternative Price Action: Buy crude above pivot with targets at 53.50 and 53.90 in extension.
Comment: Crude above its 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: Bias on the downside
Our pivot point is at 1842.60
Preferable Price Action: Further downside to 1832.00 & 1826.00.
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1853.00 and 1859.00.
Comment: MACD in negative territory and price below 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 30,410.00
Preferable Price Action: Take sell positions below pivot with targets at 30,100.00 & 29,900.00 extension.
Alternative Price Action: Above 30,410.00 looks for further upside to 30,720.00 & 30,920.00.
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