Market Wrap: Stocks, Bonds, Commodities
Wall Street closed lower on Wednesday with the S&P suffering its biggest one-day percentage drop since February, as inflation data fueled concerns over whether interest rate hikes from the Fed could happen sooner than anticipated.
The Dow Jones Industrial Average was down 681.50 points (1.99%) at 33,587.66, while the S&P 500 was fell 89.22 points (2.15%) at 4,062.88 and the Nasdaq Composite has slumped 357.75 points (2.67%) at 13,031.68.
Asian shares slipped to seven-week lows on Thursday after a dismaying rise in U.S. inflation bludgeoned Wall Street and sent bond yields surging on worries the Federal Reserve might have to move early on tightening.
MSCI’s index of Asia-Pacific stocks outside Japan decline 1.39% to 842.36 levels. Australian index slipped 0.88% to 6,982.70.00. Japanese Nikkei plunged 2.49% to 27,448.10.
European stocks were lower on Thursday, with the Stoxx Europe 50 Index declined 2.14% to 3,862.80, Germany’s DAX fell 2.11% to 14,831.90, and France’s CAC lower 1.94% to 6,157.20, and U.K.’s FTSE 100 down 2.44% to 6,833.62.
Benchmark 10-year U.S. Treasury rose as demand for safe assets grows again, today 10-year bond yields lost 0.90% to 1.688.
Oil was down Thursday morning in Asia over concerns about the ever-surging numbers of COVID-19 cases in India and after the U.S. released a draw of crude inventory.
Spot Brent crude oil declined 2.18% to $67.81 per barrel. US West Texas Intermediate crude lower 2.32% to $64.53 a barrel.
The yellow metal traded lower 0.44% to 1814.60 dollars per ounce.
Market Wrap: Forex
The dollar held on to its gains in early European trading on Thursday, having strengthened in the previous session after a surprisingly large rise in U.S. consumer prices fanned inflation fears.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, gained 0.15% to 90.820.
The Euro US Dollar (EUR/USD) is a widely traded pair that fell 0.05% today. This left the pairing trading around $1.20620.
The Japanese yen fell against the U.S. dollar on Wednesday as the stock pushes lower. Today US/JPY down 0.10% to 109.530 level.
Another commodity-related currency lower against the U.S dollar, AUD/USD slipped 0.28% to 0.77000 and NZD/USD down 0.11% to 0.71460.
EUR/USD Intraday: Resistance at 1.21050
Our pivot point is at 1.21050
Preferable Price Action: Take short positions below pivot level with targets at 1.20350 & 1.20100 in extension.
Alternative Price Action: Above pivot looks for further upside to 1.21700 & 1.21950.
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 downside
Our pivot point is at 1.40820
Preferable Price Action: Sell positions below pivot with targets at 1.40070 & 1.39800 in extension.
Alternative Price Action: The price above pivot would call for further upside to 1.41570 & 1.41850.
Comment: Price below its 55MA & 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
USD/JPY Intraday: Trend on the upside
Our pivot point is at 109.430
Preferable Price Action: Buy position above with the target at 109.770 and 109.970 in extension.
Alternative Price Action: The downside breakout of pivot would call for 109.090 and 108.890.
Comment: price 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
AUD/USD Intraday: Trend on the downside
Our pivot point is at 0.77460
Preferable Price Action: Sell Positions below pivot with targets at 0.76900 & 0.76600 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.78000 & 0.78300 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: Resistance at 65.10
Our pivot point is at 65.10
Preferable Price Action: Below pivots sell Oil with 64.10 & 63.60 as targets.
Alternative Price Action: Buy crude above pivot with targets at 66.10 and 66.60 in extension.
Comment: Crude below 20MA & 55MA and MACD in the 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 1823.00
Our pivot point is at 1823.00
Preferable Price Action: Further downside to 1809.50 & 1803.50.
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1836.50 and 1842.50.
Comment: MACD in negative territory and price below its 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 downside
Our pivot point is 33,730.00
Preferable Price Action: Take sell positions below pivot with targets at 33,200.00 & 33,000.00.
Alternative Price Action: Above 33,730.00 looks for further upside to 34,250.00 & 34,450.00.
Comment: Price below 20MA & 55MA and RSI at the oversold level.
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