Market Wrap: Stocks, Bonds, Commodities
The Nasdaq ended mixed on Friday, lifted by Facebook and energy shares as U.S. Treasury yields took a break from a recent surge.
The Dow Jones Industrial Average fell 234.79 points (0.71%) to 32,627.51, the S&P 500 lost 2.71 points (0.07%) to 3,912.75 and the Nasdaq Composite added 99.07 points (0.76%) to 13,215.24.
Asian stocks turned mixed and bonds bounced on Monday as a plunge in the Turkish lira sparked talk that capital controls might be needed to stem the rout, though the wider fallout was relatively restrained for the moment.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.22% to 880.98 levels. Australian index gained 0.66% to 6,752.50. Japanese Nikkei traded slumped 2.10% to 29,174.15.
European stocks were lower on Monday, with the Stoxx Europe 50 Index lost 0.23% to 3,829.55, Germany’s DAX up 0.10% to 14,635.10 and France’s CAC lower 0.57% to 5,965.20 and U.K.’s FTSE 100 fell 0.30% to 6,689.12.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield down 2.77% to 1.684.
Oil prices resumed their decline on Monday, falling around 1% as worries about a drop in demand for fuel products in the wake of yet more European lockdowns dominated trading.
Spot Brent crude oil lost 0.63% to $61.05 per barrel. US West Texas Intermediate crude down 0.57% to $64.16 a barrel.
The yellow metal traded 0.73% lower to 1730.30 dollars per ounce.
Market Wrap: Forex
The Turkish lira slumped toward a record low versus the dollar after President Tayyip Erdogan stunned investors over the weekend by replacing the hawkish central bank governor with a critic of high-interest rates.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, flat to 91.935.
The Euro US Dollar (EUR/USD) widely traded pair flat today. This left the pairing trading around $1.19030.
The Japanese yen rose against the U.S. dollar on Monday as stock pushes higher. Today US/JPY fell 0.18% to 108.660 level.
Other commodity-related currency lower against the U.S dollar, AUD/USD fell 0.23% to 0.77230 and NZD/USD slipped 0.05% to 0.71570.
EUR/USD Intraday: Trend downside
Our pivot point is at 1.19000
Preferable Price Action: Take Short positions below pivot level with targets at 1.18700 & 1.18500 in extension.
Alternative Price Action: Above pivot looks for further upside to 1.19300 & 1.19500.
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: Resistance at 1.38792
Our pivot point is at 1.38790
Preferable Price Action: Sell positions below pivot with targets at 1.38100 & 1.37800 in extension.
Alternative Price Action: The price above pivot would call for further upside to 1.39470 & 1.39770.
Comment: Price is 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
USD/JPY Intraday: Resistance at 108.930
Our pivot point is at 108.930
Preferable Price Action: Sell position below with the target at 108.570 and 108.400 in extension.
Alternative Price Action: The upside breakout of pivot would call for 109.280 and 109.450.
Comment: price below 20MA & 50MA 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
AUD/USD Intraday: Trend downside
Our pivot point is at 0.77500
Preferable Price Action: Sell Positions below pivot with targets at 0.77000 & 0.76770 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.78000 & 0.78230 as targets.
Comment: Pair below its 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
CRUDEOIL Intraday: Bias on the upside
Our pivot point is at 59.85
Preferable Price Action: Above pivots buy Oil with 61.30 & 62.00 as targets.
Alternative Price Action: Sell crude below pivot with targets at 58.50 and 57.80 in extension.
Comment: Crude above 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: In the consolidation area
Our pivot point is at 1739.00
Preferable Price Action: Further downside to 1724.00 & 1716.00.
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1754.00 and 1762.00.
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 downside
Our pivot point is 32,690.00
Preferable Price Action: Take sell positions below pivot with targets at 32,400.00 & 32,250.00.
Alternative Price Action: Above 32,690.00 looks for further upside to 32,990.00 & 33,140.00.
Comment: Price below 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