Market Wrap: Stocks, Bonds, Commodities
U.S. stocks rose more than 1% on Thursday and the S&P500 and Nasdaq posted record closing highs after another batch of upbeat earnings and data suggesting the labor market may be stabilizing.
Global shares closed in on their record peak on Friday, with Asian shares taking their lead from Wall Street, as progress in vaccine distribution prompted bets on further normalization in the global economy and earnings recovery.
The Dow Jones Industrial Average rose 332.26 point (1.08%) to 31,055.86, the S&P 500 gained 41.57 points (1.09%) to 3,871.74 and the Nasdaq Composite added 167.20 points (1.23%) to 13,777.74.
Asian futures were little changed in early trading after progress in vaccine distribution and a large U.S. stimulus program sent two major Wall Street indexes to record closing highs.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.33% to 916.60 levels. Australian index advances 1.54% to 6,840.50. Japanese Nikkei traded 1.54% higher to 28,779.19.
European stocks were advance on Friday, with the Stoxx Europe 50 Index gained 0.61% to 3,664.80, Germany’s DAX rose 0.26% to 14,097.35 and France’s CAC higher 1.05% to 5,667.94 and U.K.’s FTSE 100 advance 0.10% to 6,512.74.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield gained flat to 1.139.
Oil prices climbed on Friday to their highest levels in a year, extending a run of strong gains on signs of economic growth in the United States and a continued commitment by producers to hold back crude supply.
Spot Brent crude Oil up 1.00% to $59.59 per barrel. US West Texas Intermediate crude advance 1.26% to $56.94 a barrel.
The yellow metal traded 0.86% higher to 1806.40 dollar per ounce.
Market Wrap: Forex
The dollar hit two-month highs Thursday, but its revival is nothing more than “noise” and will eventually fade as U.S. Treasury yields are set to run out of steam, Citi said.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lower 0.16% to 91.407.
The Euro US Dollar (EUR/USD) widely traded pair rose 0.14% today. This left the pairing trading around $1.19790.
The Japanese yen gained against the U.S. dollar on Friday as stock pushes higher. Today US/JPY down 0.10% to 105.450 level.
Other commodity related currency higher against U.S dollar, AUD/USD gained 0.26% to 0.76190 and NZD/USD jumped 0.13% to 0.71630.
EUR/USD Intraday: Trend on the downside
Our pivot point is at 1.19880
Preferable Price Action: Take Short positions below pivot level with targets at 1.19470 & 1.19220 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.20290 & 1.20530.
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: Support at 1.36700
Our pivot point is at 1.36700
Preferable Price Action: Buy positions above pivot with targets at 1.37080 & 1.37380 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.36330 & 1.36030.
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: Upside strong trend
Our pivot point is at 105.460
Preferable Price Action: Buy position above with the target at 105.350 and 105.790 in extension.
Alternative Price Action: The downside breakout of pivot would call for 105.270 and 105.120.
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: In a consolidation zone
Our pivot point is at 0.76210
Preferable Price Action: Buy Positions above pivot with targets at 0.76260 & 0.76480 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.75560 & 0.75330 as targets.
Comment: Pair 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 produced
CRUDEOIL Intraday: Support at 56.15
Our pivot point is at 56.15
Preferable Price Action: Above pivots buy Oil with 56.90 & 57.40 as targets.
Alternative Price Action: Sell crude below pivot with targets at 55.40 and 54.90 in extension.
Comment: Crude above its 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: Trend on the downside
Our pivot point is at 1807.00
Preferable Price Action: Further downside to 1790.00 & 1780.10.
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1824.00 and 1834.10.
Comment: MACD in negative territory and price below 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 upside
Our pivot point is 30,990.00
Preferable Price Action: Take buy positions above pivot with targets at 31,250.00 & 31,450.00 extension.
Alternative Price Action: Below 30,990.00 looks for further downside to 30,730.00 & 30,530.00.
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