Market Wrap: Stocks, Bonds, Commodities
The S&P 500 surged on Monday in its strongest one-day gain since June as bond markets calmed after a month-long selloff, while another COVID-19 vaccine getting U.S. approval and fiscal stimulus bolstered expectations of a swift economic recovery.
The Dow Jones Industrial Average surged 1.95% to end at 31,535.51 points, while the S&P 500 gained 2.38% to 3,901.82. The Nasdaq Composite jumped 3.01% to 13,588.83.
Asian shares are poised to rally on Tuesday as a halt in a recent bond markets sell-off calmed investor’s nerves and lifted riskier assets, although oil prices were on the defensive on fears of slowing Chinese energy consumption.
MSCI’s index of Asia-Pacific stocks outside Japan flat to 890.00 levels. Australian index slump 0.40% to 6,762.30. Japanese Nikkei traded 0.89% lower to 29,408.20.
European stocks were lower on Tuesday, with the Stoxx Europe 50 Index fell 0.24% to 3,697.15, Germany’s DAX down 0.18% to 13,988.50 and France’s CAC lost 0.16% to 5,783.99 and U.K.’s FTSE 100 flat to 6,588.37.
Benchmark 10-year U.S. Treasury advance as demand for risky asset grow again, today 10-year bond yield fell 2.00% to 1.417.
Oil prices fell more than 1% on Monday as fears that Chinese oil crude consumption is slowing and that OPEC may increase global supply following a meeting this week.
Spot Brent crude oil fell 1.20% to $60.05 per barrel. US West Texas Intermediate crude lost 1.10% to $63.00 a barrel.
The yellow metal traded 0.16% lower to 1723.30 dollars per ounce.
Market Wrap: Forex
The dollar stood firm against its low-yielding peers on Tuesday on bets of a faster economic recovery in the United States and expectations that the U.S. Federal Reserve will show greater tolerance of higher bond yields than other central banks.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, gained 0.18% to 90.398.
The Euro US Dollar (EUR/USD) widely traded pair slipped 0.21% today. This left the pairing trading around $1.20220.
The Japanese yen fell against the U.S. dollar on Tuesday as stock pushes lower. Today US/JPY advanced 0.10% to 106.830 level.
Other commodity related currency lower against U.S dollar, AUD/USD down 0.11% to 0.77610 and NZD/USD fell 0.32% to 0.72400.
EUR/USD Intraday: Trend downside
Our pivot point is at 1.20460
Preferable Price Action: Take Short positions below pivot level with targets at 1.20000 & 1.19750 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.20950 & 1.21200.
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
GBP/USD Intraday: Break support levels
Our pivot point is at 1.39230
Preferable Price Action: Sell positions below pivot with targets at 1.38580 & 1.38180 in extension.
Alternative Price Action: The price above pivot would call for further upside to 1.39880 & 1.40280.
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 106.740
Our pivot point is at 106.740
Preferable Price Action: Buy position above with the target at 107.030 and 107.230 in extension.
Alternative Price Action: The downside breakout of pivot would call for 106.430 and 106.230.
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 consolidation zone
Our pivot point is at 0.77390
Preferable Price Action: Buy Positions above pivot with targets at 0.77850 & 0.78100 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.76950 & 0.76700 as targets.
Comment: Pair above its 20MA & 55MA an RSI at 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: Trend on the downside
Our pivot point is at 60.50
Preferable Price Action: Below pivots sell Oil with 59.30 & 58.70 as targets.
Alternative Price Action: Buy crude above pivot with targets at 61.70 and 62.30 in extension.
Comment: Crude 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
XAU/USD Intraday: Trend on the downside
Our pivot point is at 1729.40
Preferable Price Action: Further downside to 1710.10 & 1699.40.
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1749.40 and 1760.20.
Comment: MACD in negative territory and price below 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: Support at 31,290.00
Our pivot point is 31,290.00
Preferable Price Action: Take buy positions above pivot with targets at 31,570.00 & 31,730.00.
Alternative Price Action: Below 31,130.00 looks for further downside to 31,030.00 & 30,850.00.
Comment: Price above its 55MA and RSI at 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