Market Wrap: Stocks, Bonds, Commodities
The Nasdaq fell more than 2% on Tuesday as steep declines in mega-cap growth stocks pushed Wall Street below record trading levels, with investors seeking shelter in more defensive parts of the market.
The Dow Jones Industrial Average was down 235.73 points (0.69%) at 33,877.50, the S&P 500 was down 56.17 points (1.34%) at 4,136.49 and the Nasdaq Composite was down 379.74 points (2.73%) at 13,515.38.
Asian shares risked falling for a fourth straight session on Wednesday as sentiment took a knock from a selloff in large-cap Wall Street tech darlings, combined with talk of rising U.S. interest rates.
MSCI’s index of Asia-Pacific stocks outside Japan fell 0.51% to 871.15 levels. Australian index rose 0.39% to 7,095.80. Japanese Nikkei closed today.
European stocks were advanced Wednesday, with the Stoxx Europe 50 Index advance 1.40% to 3,980.65, Germany’s DAX rose 1.51% to 15,081.15, and France’s CAC higher 1.08% to 6,319.46, and U.K.’s FTSE 100 gained 1.19% to 7,006.99
Benchmark 10-year U.S. Treasury rose as demand for risky assets grows again, today 10-year bond yield rose 0.70% to 1.603.
Oil was up Wednesday morning in Asia over a record fall in U.S. crude supplies and growing expectations that re-opening drives in the U.S. and Europe will boost fuel demand. However, Traders are also keeping an eye on ever-surging numbers of COVID-19 cases in parts of Asia.
Spot Brent crude oil up 1.31% to $69.80 per barrel. US West Texas Intermediate crude rose 1.28% to $66.53 a barrel.
The yellow metal traded lower 0.05% to 1775.20 dollars per ounce.
Market Wrap: Forex
The dollar hit its highest in over two weeks on Wednesday, extending a rally as chatter about the possibility of higher U.S. interest rates and a sell-off in tech stocks soured risk sentiment to the benefit of the safe-haven currency.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose 0.49% to 91.375.
The Euro US Dollar (EUR/USD) is a widely traded pair down 0.17% today. This left the pairing trading around $1.19930.
The Japanese yen fell against the U.S. dollar on Wednesday as the stock pushes lower. Today US/JPY flat to 109.340 level.
Another commodity-related currency higher against the U.S dollar, AUD/USD up 0.22% to 0.77210 and NZD/USD rose 0.41% to 0.71700.
EUR/USD Intraday: Trend on the downside
Our pivot point is at 1.20160
Preferable Price Action: Take short positions below pivot level with targets at 1.19760 & 1.19590 in extension.
Alternative Price Action: Above pivot looks for further upside to 1.20570 & 1.20740.
Comment: Pair below its 55MA & 20MA 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
GBP/USD Intraday: Trend upside
Our pivot point is at 1.38630
Preferable Price Action: Buy positions above pivot with targets at 1.39100 & 1.39300 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.38160 & 1.37960.
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 produced
USD/JPY Intraday: Support at 109.210
Our pivot point is at 109.190
Preferable Price Action: Buy position above with the target at 109.500 and 109.650 in extension.
Alternative Price Action: The downside breakout of pivot would call for 108.950 and 108.800.
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 0.77360
Our pivot point is at 0.77360
Preferable Price Action: Sell Positions below pivot with targets at 0.77090 & 0.76930 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.77630 & 0.77790 as targets.
Comment: Pair below its 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
CRUDEOIL Intraday: Trend on the upside
Our pivot point is at 65.75
Preferable Price Action: Above pivots buy Oil with 67.00 & 68.50 as targets.
Alternative Price Action: Sell crude below pivot with targets at 64.50 and 64.00 in extension.
Comment: Crude above its 20MA & 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 1780.40
Preferable Price Action: Further downside to 1771.50 & 1767.40.
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1789.40 and 1793.60.
Comment: MACD in negative territory and price below its 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: Break resistance level
Our pivot point is 34,160.00
Preferable Price Action: Take buy positions above pivot with targets at 34,300.00 & 34,400.00.
Alternative Price Action: Below 34,160.00 looks for further downside to 34,020.00 & 33,920.00.
Comment: Price above 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