Market Wrap: Stocks, Bonds, Commodities
The S&P 500 ended just slightly in the red on Monday, with bank shares falling amid warnings of potential losses from a hedge fund’s default on margin calls, while optimism over the economy limited the day’s declines.
The Dow Jones Industrial Average rose 98.49 points (0.30%) to 33,171.37, the S&P 500 lost 3.45 points (0.10%) to 3,971.09 and the Nasdaq Composite dropped 79.08 points (0.60%) to 13,059.65.
Asian shares were set to open higher on Tuesday as investors shook off earlier worries about a hedge fund default that roiled global banking stocks overnight, while rekindled concerns about inflation pushed bond yields higher.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.60% to 867.96 levels. Australian index slipped 0.90% to 6,738.40. Japanese Nikkei traded 0.16% higher to 29,432.70.
European stocks were advance on Tuesday, with the Stoxx Europe 50 Index gained 0.63% to 3,907.25, Germany’s DAX rose 0.74% to 14,927.50 and France’s CAC higher 0.78% to 6,062.58, and U.K.’s FTSE 100 advance 0.76% to 6,787.28.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield jumped 3.10% to 1.774.
Oil prices fell on Tuesday as shipping traffic resumed through the Suez Canal after days on hold and attention switched to an OPEC+ meeting this week where the extension of supply curbs may be on the table amid new coronavirus pandemic lockdowns.
Spot Brent crude oil slipped 0.20% to $64.80 per barrel. US West Texas Intermediate crude lost 0.40% to $61.30 a barrel.
The yellow metal traded 0.90% lower to 1699.40 dollars per ounce.
Market Wrap: Forex
The dollar climbed to a four-month peak on Monday in choppy trading, with the euro languishing below $1.18 and commodity currencies falling, as the currency drew some safe-haven bids on concerns about the potential fallout of a hedge fund’s default on margin calls.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose 0.22% to 93.157.
The Euro US Dollar (EUR/USD) widely traded pair lose 0.20% today. This left the pairing trading around $1.17350.
The Japanese yen fell against the U.S. dollar on Tuesday as stock pushes higher. Today US/JPY rose 0.48% to 110.300 level.
Other commodity-related currency higher against the U.S dollar, AUD/USD flat to 0.76290, and NZD/USD rose 0.10% to 0.70020.
EUR/USD Intraday: Trend downside
Our pivot point is at 1.17560
Preferable Price Action: Take short positions below pivot level with targets at 1.17250 & 1.17100 in extension.
Alternative Price Action: Above pivot looks for further upside to 1.17880 & 1.18030.
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 on the upside
Our pivot point is at 1.37590
Preferable Price Action: Buy positions above pivot with targets at 1.37950 & 1.38150 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.37250 & 1.37050.
Comment: Price above at 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: Major trend upside
Our pivot point is at 110.110
Preferable Price Action: Buy position above with the target at 110.450 and 110.650 in extension.
Alternative Price Action: The downside breakout of pivot would call for 109.760 and 109.550.
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: Support at 0.76260
Our pivot point is at 0.76260
Preferable Price Action: Buy Positions above pivot with targets at 0.76500 & 0.76650 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.76010 & 0.75860 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 downside
Our pivot point is at 61.60
Preferable Price Action: Below pivots sell Oil with 60.50 & 59.90 as targets.
Alternative Price Action: Buy crude above pivot with targets at 62.70 and 63.30 in extension.
Comment: Crude below its 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
XAU/USD Intraday: Trend on the downside
Our pivot point is at 1706.00
Preferable Price Action: Further downside to 1692.00 & 1684.10.
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1720.70 and 1729.00.
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: Support at 33,120.00
Our pivot point is 33,120.00
Preferable Price Action: Take buy positions above pivot with targets at 33,350.00 & 33,500.00.
Alternative Price Action: Below 33,120.00 looks for further downside to 32,890.00 & 32,730.00.
Comment: Price above its 20MA and 55MA and RSI above 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