Market Wrap: Stocks, Bonds, Commodities
Wall Street rallied on Monday as technology stocks rebounded from a recent sell-off sparked by surging bond yields, and Tesla jumped after a fund run by an influential investor in the electric-car maker said its shares could approach $3,000 by 2025.
The Dow Jones Industrial Average closed up 103.23 points (0.32%) at 32,731.2. The S&P 500 gained 27.49 points (0.70%) to 3,940.59 and the Nasdaq Composite added 162.31 points (1.23%) to 13,377.54.
Asian stocks were set to track Wall Street gains on Tuesday as bond yields pulled back, easing concerns about inflation although investors are keeping a close eye on rising COVID-19 cases in Europe.
MSCI’s index of Asia-Pacific stocks outside Japan fell 0.62% to 874.46 levels. Australian index lost 0.11% to 6,745.40. Japanese Nikkei traded slumped 0.61% to 28,995.90.
European stocks were lower on Tuesday, with the Stoxx Europe 50 Index lost 0.49% to 3,814.88, Germany’s DAX down 0.64% to 14,565.25 and France’s CAC lower 0.60% to 5,932.50 and U.K.’s FTSE 100 fell 0.66% to 6,681.30.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield down 1.97% to 1.649.
Oil steadied on Monday as hopes for a pick-up in demand later this year helped arrest last week’s broad sell-off, but prices stayed under pressure as new European coronavirus lockdowns made a quick recovery look less likely.
Spot Brent crude oil lost 1.58% to $60.59 per barrel. US West Texas Intermediate crude down 1.55% to $63.62 a barrel.
The yellow metal traded flat to 1739.33 dollars per ounce.
Market Wrap: Forex
The dollar hovered below recent peaks on Tuesday as investors looked to U.S. policymakers for clues on whether they may seek to slow rising yields, while the New Zealand dollar dropped after housing reforms cooled policy-tightening expectations.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, gained 0.27% to 91.993.
The Euro US Dollar (EUR/USD) widely traded pair slipped today. This left the pairing trading around $1.19060.
The Japanese yen rose against the U.S. dollar on Tuesday as stock pushes higher. Today US/JPY fell 0.10% to 108.720 level.
The New Zealand dollar hit a three-month low after the government introduced taxes to curb housing speculation, a move investor reckoned could allow the central bank to hold interest rates lower for longer with less risk of a property bubble.
Other commodity-related currency lower against the U.S dollar, AUD/USD fell 0.67% to 0.76910 and NZD/USD slipped 1.27% to 0.70690.
EUR/USD Intraday: Trend upside
Our pivot point is at 1.19080
Preferable Price Action: Take Long positions above pivot level with targets at 1.19420 & 1.19570 in extension.
Alternative Price Action: Below pivot looks for further downside to 1.18750 & 1.18600.
Comment: Pair 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 produced
GBP/USD Intraday: Resistance at 1.38680
Our pivot point is at 1.38680
Preferable Price Action: Sell positions below pivot with targets at 1.38190 & 1.37900 in extension.
Alternative Price Action: The price above pivot would call for further upside to 1.39190 & 1.39480.
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 108.860
Our pivot point is at 108.860
Preferable Price Action: Sell position below with the target at 108.620 and 108.500 in extension.
Alternative Price Action: The upside breakout of pivot would call for 109.090 and 109.210.
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 0.77330
Preferable Price Action: Sell Positions below pivot with targets at 0.76740 & 0.76500 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.77900 & 0..78140 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: Bias on the upside
Our pivot point is at 60.30
Preferable Price Action: Above pivots buy Oil with 61.50 & 62.20 as targets.
Alternative Price Action: Sell crude below pivot with targets at 59.10 and 58.40 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 1732.50
Preferable Price Action: Further upside to 1743.00 & 1750.00.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1722.00 and 1715.00.
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: Support at 32,530.00
Our pivot point is 32,530.00
Preferable Price Action: Take buy positions above pivot with targets at 32,570.00 & 32,900.00.
Alternative Price Action: Below 32,530.00 looks for further downside to 32,310.00 & 32,160.00.
Comment: Price 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 produced7