Market Wrap: Stocks, Bonds, Commodities
The S&P 500 and the Dow indices hit all-time highs on March 11 as worries about rising inflation subsided, while a bigger-than-expected fall in weekly jobless claims reinforced expectations of a labour market recovery.
The Dow Jones Industrial Average rose 188.57 points (0.58%) to 32,485.59, the S&P 500 gained 40.53 points (1.04%) to 3,939.34 and the Nasdaq Composite added 329.84 points (2.52%) to 13,398.70.
Asian stocks set for a strong start on March 12, following firm overnight leads from Wall Street and Europe as a further retreat in bond yields eased concerns about rampant inflation, restoring appetite for battered tech stocks.
MSCI’s index of Asia-Pacific stocks outside Japan fell 0.27% to 890.70 levels. Australian index rose 0.79% to 6,766.80. Japanese Nikkei traded 1.73% higher to 29,717.83.
European stocks were declined on Friday, with the Stoxx Europe 50 Index slipped 0.47% to 3,827.74, Germany’s DAX fell 0.42% to 14,513.40 and France’s CAC lower 0.06% to 6,032.20 and U.K.’s FTSE 100 rose 0.08% to 6,742.30.
Benchmark 10-year U.S. Treasury rose as demand for risky asset grow again, today 10-year bond yield jumped 4.68% to 1.598.
Brent crude prices eased on Friday but hovered near $70 a barrel as production cuts by major oil producers constrained supply, with optimism about a recovery in demand for the resource in the second half of the year also lending support.
Spot Brent crude oil lost 0.35% to $65.81 per barrel. US West Texas Intermediate crude down 0.16% to $69.52 a barrel.
The yellow metal traded 0.90% lower to 1709.26 dollars per ounce.
Market Wrap: Forex
The U.S. dollar climbed from a near one-week low on Friday as bond yields inched higher, but it looked set for its first weekly fall in three against a basket of its major rivals as riskier currencies drew support from calmer market sentiment.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, gained 0.39% to 91.780.
The euro jumped against the dollar and looks set to snap its two-week losing streak as experts suggest that the single currency’s downward trajectory is likely over for now following the latest’s European Central Bank monetary policy meeting on Thursday.
The Euro US Dollar (EUR/USD) widely traded pair slipped 0.36% today. This left the pairing trading around $1.19410.
The Japanese yen fell against the U.S. dollar on Friday as stock pushes higher. Today US/JPY rose 0.59% to 109.130 level.
Other commodity-related currency lower against the U.S dollar, AUD/USD down 0.43% to 0.77530 and NZD/USD fell 0.47% to 0.71910.
EUR/USD Intraday: Resistance at 1.19720
Our pivot point is at 1.19720
Preferable Price Action: Take short positions below pivot level with targets at 1.19290 & 1.19040 in extension.
Alternative Price Action: Above pivot looks for further upside to 1.20130 & 1.20380.
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: Trend may reverse
Our pivot point is at 1.39810
Preferable Price Action: Sell positions below pivot with targets at 1.39200 & 1.38900 in extension.
Alternative Price Action: The price above pivot would call for further upside to 1.40400 & 1.40700.
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 108.700
Our pivot point is at 108.700
Preferable Price Action: Buy position above with the target at 109.030 and 109.230 in extension.
Alternative Price Action: The downside breakout of pivot would call for 108.380 and 108.180.
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: Resistance at 0.77840
Our pivot point is at 0.77840
Preferable Price Action: Sell Positions below pivot with targets at 0.77400 & 0.77200 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.78280 & 0.78480 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 consolidation level
Our pivot point is at 66.15
Preferable Price Action: Below pivots sell Oil with 65.00 & 64.40 as targets.
Alternative Price Action: Buy crude above pivot with targets at 67.30 and 67.90 in extension.
Comment: Crude below 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: Resistance at 1720.60
Our pivot point is at 1720.60
Preferable Price Action: Further downside to 1705.90 & 1698.50.
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1734.60 and 1742.00.
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: Trend on the upside
Our pivot point is 32,470.00
Preferable Price Action: Take buy positions above pivot with targets at 32,660.00 & 32,790.00.
Alternative Price Action: Below 32,470.00 looks for further downside to 32,270.00 & 32,140.00.
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