Market Wrap: Stocks, Bonds, Commodities
The S&P 500 ended a languid session slightly in the red on Monday, with investors standing by on news of a global minimum corporate tax rate, lingering inflation fears, and a lack of market-moving economic news.
The Dow Jones Industrial Average fell 126.15 points (0.36%) to 34,630.24; the S&P 500 lost 0.08% at 4,226.52; and the Nasdaq Composite added 67.23 points (0.49%) at 13,881.72.
Asia stocks opened higher on Tuesday, cruising in the slipstream of a record high overnight gauge of global equity markets, with investors hoping for inflation and monetary policy clues later in a week full of key central bank meetings and data points.
MSCI’s index of Asia-Pacific stocks outside Japan slipped 0.24% to 887.85 levels. Australian index rose 0.15% to 7,292.60. Japanese Nikkei traded 0.19% lower to 28,963.56.
European stocks were higher on Monday, with the Stoxx Europe 50 Index rose 0.07% to 4,098.50, Germany’s DAX flat to 15,683.80, and France’s CAC gained 0.10% 6,549.30, and U.K.’s FTSE 100 advance 0.13% to 7,084.77.
Benchmark 10-year U.S. Treasury rose as demand for safe assets grows again, today 10-year bond yields lost 1.06% to 1.553.
Oil prices lost more ground on Tuesday as concerns about the fragile state of the global recovery in demand for crude and fuels were heightened by data showing China’s oil imports fell in May.
Spot Brent crude oil lost 0.57% to $71.08 per barrel. US West Texas Intermediate crude down 0.51% to $68.88 a barrel.
The yellow metal traded 0.78% advanced to 1897.70 dollars per ounce.
Market Wrap: Forex
The U.S. dollar found support on Tuesday as investors looked to U.S. inflation data due later in the week after softer-than-expected jobs data eased but did not dispel concerns about early tapering of the Federal Reserve’s monetary stimulus.
Today, the U.S. dollar index measures the greenback against a trade-weighted basket of six major currencies, higher 0.12% to 90.058.
The Euro US Dollar (EUR/USD) is a widely traded pair that fell 0.06% today. This left the pairing trading around $1.21790.
The Japanese yen gained against the U.S. dollar on Tuesday as the stock pushes higher. Today US/JPY gained 0.16% to 109.410 level.
Another commodity-related currency lower against the U.S dollar, AUD/USD flat to 0.77520, and NZD/USD slipped 0.13% to 0.72180.
EUR/USD Intraday: Resistance at 1.21952
Our pivot point is at 1.21952
Preferable Price Action: Take short positions below pivot level with targets at 1.21625 & 1.21371 in extension.
Alternative Price Action: Above pivot looks for further upside to 1.22265 & 1.22462.
Comment: Pair above its 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: In a consolidation zone
Our pivot point is at 1.41710
Preferable Price Action: Sell positions below pivot with targets at 1.41280 & 1.40950 in extension.
Alternative Price Action: The price above pivot would call for further upside to 1.42110 & 1.42400.
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 may reverse
Our pivot point is at 109.350
Preferable Price Action: Buy position above with the target at 109.604 and 109.792 in extension.
Alternative Price Action: The downside breakout of pivot would call for 109.082 and 108.935.
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 0.77630
Our pivot point is at 0.77630
Preferable Price Action: Sell Positions below pivot with targets at 0.77271 & 0.77000 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.77976 & 0.78146 as targets.
Comment: Pair 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
CRUDEOIL Intraday: Resistance at 69.95
Our pivot point is at 69.95
Preferable Price Action: Below pivots sell Oil with 68.26 & 67.84 as targets.
Alternative Price Action: Buy crude above pivot with targets at 69.59 and 70.07 in extension.
Comment: Crude is below its 55MA & 20MA 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: Trend in the upside
Our pivot point is 1890.60
Preferable Price Action: Further upside to 1904.64 & 1912.65.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1878.50 and 1870.12.
Comment: MACD in positive territory and price above its 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 support level
Our pivot point is 34,654.00
Preferable Price Action: Take sell positions below pivot with targets at 34,508.00 & 34,428.00.
Alternative Price Action: Above 34,465.00 looks for further upside to 34,768.70 & 34,838.00.
Comment: Price 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