Market Wrap: Stocks, Bonds, Commodities
The S&P 500 dipped on Tuesday, with declines in healthcare and tech shares countered by energy and financial gains, as investors weighed the latest U.S. economic data for signs of a rebound and rising inflation.
The Dow Jones Industrial Average rose 45.86 points (0.13%) to 34,575.31; the S&P 500 lost 0.05% to 4,202.04; and the Nasdaq Composite dropped 12.26 points (0.10%) to 13,736.48.
Asian shares edged up to near three-month highs on Wednesday and global equities held steady near a record as data showing higher U.S. manufacturing activity in May cheered investors looking for signs of a continued rebound in the world’s largest economy.
MSCI’s index of Asia-Pacific stocks outside Japan slipped 0.57% to 897.15 levels. Australian index advance 1.05% to 7,217.80. Japanese Nikkei traded 0.46% higher to 28,946.14.
European stocks were mixed on Wednesday, with the Stoxx Europe 50 Index fell 0.13% to 4,066.29, Germany’s DAX lost 0.05% to 15,559.60, and France’s CAC declined 0.10% 6,483.60, and U.K.’s FTSE 100 rose 0.36% to 7,106.15.
Benchmark 10-year U.S. Treasury rose as demand for safe assets grows again, today 10-year bond yields fell 0.44% to 1.608.
Oil prices rose on Wednesday after OPEC and its allies stuck to their plan to cautiously bring back oil supply to the markets in June and July while expecting a robust recovery in demand in the United States and China, the world’s two biggest oil consumers.
Spot Brent crude oil gained 0.41% to $70.54 per barrel. US West Texas Intermediate crude rose 0.32% to $67.94 a barrel.
The yellow metal traded 0.14% lower to 1899.20 dollars per ounce.
Market Wrap: Forex
The dollar clung to small gains from overnight on Wednesday, edging back from near a five-month trough versus major peers, as a pick up in U.S. manufacturing kept bets alive for a quicker normalization of Federal Reserve policy.
Today, the U.S. dollar index measures the greenback against a trade-weighted basket of six major currencies, higher 0.20% to 89.995.
The Euro US Dollar (EUR/USD) is a widely traded pair that flat today. This left the pairing trading around $1.22040
The Japanese yen fell against the U.S. dollar on Wednesday as the stock pushes higher. Today US/JPY up 0.26% to 109.730 level.
Another commodity-related currency lower against the U.S dollar, AUD/USD down 0.28% to 0.77320, and NZD/USD slipped 0.37% to 0.72270.
EUR/USD Intraday: Trend on the upside
Our pivot point is at 1.22060
Preferable Price Action: Take long positions above pivot level with targets at 1.22330 & 1.22520 in extension.
Alternative Price Action: Below pivot looks for further downside to 1.21780 & 1.21580.
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: Break support level
Our pivot point is at 1.42770
Preferable Price Action: Sell positions below pivot with targets at 1.41270 & 1.40970 in extension.
Alternative Price Action: The price above pivot would call for further upside to 1.42270 & 1.42570.
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: Break resistance level
Our pivot point is at 109.540
Preferable Price Action: Buy position above with the target at 109.930 and 110.130 in extension.
Alternative Price Action: The downside breakout of pivot would call for 109.150 and 108.950.
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: Resistance at 0.77700
Our pivot point is at 0.77700
Preferable Price Action: Sell Positions below pivot with targets at 0.77150 & 0.76870 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.78200 & 0.78490 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: Support at 67.35
Our pivot point is at 67.35
Preferable Price Action: Above pivots buy Oil with 68.40 & 68.90 as targets.
Alternative Price Action: Sell crude below pivot with targets at 66.30 and 65.80 in extension.
Comment: Crude is above its 55MA & 20MA and MACD in the 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 1904.60
Preferable Price Action: Further downside to 1893.00 & 1888.00.
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1915.60 and 1921.00.
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: Support at 34,500.00
Our pivot point is 34,500.00
Preferable Price Action: Take buy positions above pivot with targets at 34,620.00 & 34,680.00.
Alternative Price Action: Below 34,500.00 looks for further downside to 34,380.00 & 34,320.90.
Comment: Price above 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