Market Wrap: Stocks, Bonds, Commodities
US stocks rallied on Tuesday, with the Nasdaq gaining about 4% to recoup heavy losses from the previous session as US bond yields retreated and investors scooped up battered technology stocks.
The Dow Jones Industrial Average rose 30.3 points (0.10%) to 31,832.74, the S&P 500 gained 54.09 points (1.42%) to 3,875.44 and the Nasdaq Composite added 464.66 points (3.69%) to 13,073.83.
Asian indices set to track US gains on Wednesday, as falling bond yields eased concerns about surging inflation, although the focus will shift to Chinese markets amid worries about policy tightening in the world’s second-largest economy.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.37% to 872.30 levels. Australian index declines 0.84% to 6,714.00. Japanese Nikkei traded 0.05% higher to 29,035.60.
European stocks were advance on Monday, with the Stoxx Europe 50 Index gained 0.35% to 3,798.30, Germany’s DAX rose 0.35% to 14,489.00 and France’s CAC higher 0.47% to 5,952.20 and U.K.’s FTSE 100 lost 0.20% to 6,719.20.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield lost 0.60% to 1.535.
Oil ticked higher on Wednesday, after falling for two straight sessions, with investors looking ahead to U.S. inventories data due later in the day for pointers on where prices will head next.
Spot Brent crude oil lost 0.91% to $63.44 per barrel. US West Texas Intermediate crude down 1.01% to $66.84 a barrel.
The yellow metal traded 0.25% lower to 1714.70 dollars per ounce.
Market Wrap: Forex
The U.S. dollar index rose on Wednesday, clawing back some of the losses sustained overnight, as U.S. yields found a floor following their drop from one-year highs.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, gained 0.06% to 90.023.
The Euro US Dollar (EUR/USD) widely traded pair flat today. This left the pairing trading around $1.18960.
The Japanese yen fell against the U.S. dollar on Monday as stock pushes higher. Today US/JPY rose 0.20% to 108.670 level.
Other commodity-related currency mixed against U.S dollar, AUD/USD flat to 0.77090 and NZD/USD gained 0.05% to 0.71690.
EUR/USD Intraday: Trend downside
Our pivot point is at 1.18930
Preferable Price Action: Take short positions above pivot level with targets at 1.18590 & 1.18380 in extension.
Alternative Price Action: Above pivot looks for further upside to 1.19270 & 1.19480.
Comment: Pair below its 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: Support at 1.38570
Our pivot point is at 1.38570
Preferable Price Action: Buy positions above pivot with targets at 1.38950 & 1.39220 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.38180 & 1.37910.
Comment: Price above at 55MA & 20MA 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 produced
USD/JPY Intraday: Trend on the upside
Our pivot point is at 108.680
Preferable Price Action: Buy position above with the target at 109.000 and 109.200 in extension.
Alternative Price Action: The downside breakout of pivot would call for 108.350 and 108.150.
Comment: price above 20MA & 50MA 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 0.77020
Preferable Price Action: Sell Positions below pivot with targets at 0.76700 & 0.76500 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.77340 & 0.77540 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: Trend downside
Our pivot point is at 64.10
Preferable Price Action: Below pivots sell Oil with 62.70 & 62.00 as targets.
Alternative Price Action: Buy crude above pivot with targets at 65.40 and 66.10 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: Support at 1711.40
Our pivot point is at 1711.40
Preferable Price Action: Further upside to 1720.80 & 1726.80.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1702.00 and 1696.00.
Comment: MACD in positive territory and price above 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: Resistance at 31,950.00
Our pivot point is 31,950.00
Preferable Price Action: Take sell positions below pivot with targets at 31,660.00 & 31,500.00.
Alternative Price Action: Above 31,950.00 looks for further upside to 32,230.00 & 32,390.00.
Comment: Price below its 20MA and 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