Market Wrap: Stocks, Bonds, Commodities
The S&P 500 and the Dow rose on Friday to close at record highs, posting a third straight weekly rise partly on a lift from growth stocks, with a late-day rally building gains ahead of quarterly earnings season next week.
The Dow Jones Industrial Average rose 297.03 points (0.89%) to 33,800.6, the S&P 500 gained 31.63 points (0.77%) to 4,128.8 and the Nasdaq Composite added 70.88 points (0.51%) to 13,900.19.
Asian shares started cautiously on Monday as investors wait to see if U.S. earnings can justify sky-high valuations, while bond markets could be tested by what should be very strong readings for U.S. inflation and retail sales this week.
MSCI’s index of Asia-Pacific stocks outside Japan fell 1.23% to 863.38 levels. Australian index lost 0.30% to 6,974.00. Japanese Nikkei traded 0.77% lower to 29,538.73.
European stocks declined on Monday, with the Stoxx Europe 50 Index slipped 0.22% to 3,969.71, Germany’s DAX flat to 15,235.85 and France’s CAC lower 0.17% to 6,158.38 U.K.’s FTSE 100 lost 0.82% to 6,860.91.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield down 1.10% to 1.648.
Oil was steady near $59 a barrel as trading opened in Asia after Federal Reserve Chair Jerome Powell said the U.S. economy was poised for stronger growth while cautioning that Covid-19 still remains a threat.
Spot Brent crude oil lost 0.11% to $62.87 per barrel. US West Texas Intermediate crude slipped 0.24% to $59.17 a barrel.
The yellow metal traded fell 0.37% to 1738.20 dollars per ounce.
Market Wrap: Forex
The dollar languished near 2-1/2-week lows against major peers on Monday as a decline in Treasury yields restrained the U.S. currency.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell 0.05% to 92.130.
The Euro US Dollar (EUR/USD) widely traded pair gained 0.05% today. This left the pairing trading around $1.19050.
The Japanese yen rose against the U.S. dollar on Monday as stock pushes higher. Today US/JPY lost 0.30% to 109.310 level.
Another commodity-related currency lower against the U.S dollar, AUD/USD lost 0.05% to 0.76390 and NZD/USD fell 0.14% to 0.71800.
EUR/USD Intraday: In consolidation zone
Our pivot point is at 1.18920
Preferable Price Action: Take short positions below pivot level with targets at 1.18670 & 1.18550 in extension.
Alternative Price Action: Above pivot looks for further upside to 1.19170 & 1.19290.
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: Support at 1.37170
Our pivot point is at 1.37170
Preferable Price Action: Buy positions above pivot with targets at 1.37650 & 1.37900 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.36690 & 1.36440.
Comment: Price above its 20MA & 55MA and RSI at oversold 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 109.610
Our pivot point is at 109.610
Preferable Price Action: Sell position below with the target at 109.320 and 109.160 in extension.
Alternative Price Action: The upside breakout of pivot would call for 109.900 and 110.060.
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: Resistance at 0.76290
Our pivot point is at 0.76290
Preferable Price Action: Sell Positions below pivot with targets at 0.76050 & 0.75920 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.76520 & 0.76650 as targets.
Comment: Pair above its 20MA & 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 produced
CRUDEOIL Intraday: Major support at 59.10
Our pivot point is at 59.10
Preferable Price Action: Above pivots buy Oil with 60.00 & 60.40 as targets.
Alternative Price Action: Sell crude below pivot with targets at 58.20 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: Resistance at 1742.20
Our pivot point is at 1742.20
Preferable Price Action: Further downside to 1735.00 & 1731.50.
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1749.00 and 1752.50.
Comment: MACD in negative territory and price below 55MA & 20MA.
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 33,640.00
Preferable Price Action: Take buy positions above pivot with targets at 33,760.00 & 33,7810.00.
Alternative Price Action: Below 33,640.00 looks for further downside to 33,520.00 & 33,470.00.
Comment: Price above its 20MA & 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