Market Wrap: Stocks, Bonds, Commodities
US stocks ended sharply lower on Friday, with the Dow and S&P 500 posting their worst weekly performances in months, after comments from Federal Reserve official James Bullard that the U.S. central bank might raise interest rates sooner than previously expected spooked investors.
The Dow Jones Industrial Average fell 533.37 points (1.58%) to 33,290.08, the S&P 500 lost 55.41 points (1.31%) to 4,166.45 and the Nasdaq Composite dropped 130.97 points (0.92%) to 14,030.38.
Asian stocks dropped on Monday as investors mulled the implications of a surprise hawkish shift last week by the U.S. Federal Reserve, while the Treasury yield curve flattened further with 30-year yields dropping below 2%.
MSCI’s index of Asia-Pacific stocks outside Japan lost 1.21% to 870.26 levels. Australian index plunged 1.81% to 7,235.30. Japanese Nikkei traded fell 3.30% to 28,010.90.
European stocks were lower on Thursday, with the Stoxx Europe 50 Index lost 0.27% to 4,139.89, Germany’s DAX fell 0.14% to 15,687.40, and France’s CAC slipped 0.13% 6,643.66, and U.K.’s FTSE 100 down 0.34% to 7,160.65.
Benchmark 10-year U.S. Treasury rose as demand for safe risk grows again, today 10-year bond yields down 3.72% to 1.396.
Oil prices rose on Monday, underpinned by strong demand during the summer driving season and a pause in talks to revive the Iran nuclear deal that could indicate a delay in resumption of supplies from the OPEC producer.
Spot Brent crude oil gained 0.15% to $73.62 per barrel. US West Texas Intermediate crude rose 0.27% to $71.48 a barrel.
The yellow metal advance 0.51% to 1766.80 dollars per ounce.
Market Wrap: Forex
The dollar index, which rose after the Fed’s surprise hawkish tilt last week, gave up some of its gains on Monday, while the Australian currency stumbled on lower prices of the country’s top export, iron ore.
Today, the U.S. dollar index measures the greenback against a trade-weighted basket of six major currencies, advanced 0.10% to 92.285.
The Euro US Dollar (EUR/USD) is a widely traded pair flat today. This left the pairing trading around $1.18570.
The Japanese yen rose against the U.S. dollar on Monday as the stock pushes lower. Today US/JPY fell 0.23% to 110.560 level.
Another commodity-related currency higher against the U.S dollar, AUD/USD rose 0.10% to 0.74820, and NZD/USD gained 0.22% to 0.69480.
EUR/USD Intraday: Trend on the downside
Our pivot point is at 1.19155
Preferable Price Action: Take short positions below pivot level with targets at 1.18276& 1.17885 in extension.
Alternative Price Action: Above pivot looks for a further upside to 1.20128 & 1.20512.
Comment: Pair 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
GBP/USD Intraday: Resistance at 1.38720
Our pivot point is at 1.38720
Preferable Price Action: Sell positions below pivot with targets at 1.37600 & 1.37110 in extension.
Alternative Price Action: The price above pivot would call for further upside to 1.39780 & 1.40370.
Comment: Price below its 55MA & 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
USD/JPY Intraday: Resistance at 110.141
Our pivot point is at 110.140
Preferable Price Action: Sell position below pivot with the target at 109.650 and 109.420 in extension.
Alternative Price Action: The upside breakout of pivot would call for 110.590 and 109.810.
Comment: price below its 55MA & 20MA 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: Trend on the downside
Our pivot point is at 0.75420
Preferable Price Action: Sell Positions below pivot with targets at 0.74690 & 0.74340 in extension.
Alternative Price Action: Above pivot looks for a further upside with 0.76150 & 0.76570 as targets.
Comment: Pair 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
CRUDEOIL Intraday: In a consolidation zone
Our pivot point is at 71.16
Preferable Price Action: Above pivots buy Oil with 72.88 & 73.83 as targets.
Alternative Price Action: Sell crude below pivot with targets at 69.55 and 68.61 in extension.
Comment: Crude is above its 55MA 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 may change to the upside
Our pivot point is 1766.00
Preferable Price Action: Further upside to 1800.00 & 1820.00.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1735.00 and 1715.00.
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: Trend on the downside
Our pivot point is 33,471.00
Preferable Price Action: Take Sell positions below pivot with targets at 33,050.00 & 32,826.00.
Alternative Price Action: Above 33,471.00 looks for further upside to 33,907.00 & 34,147.00.
Comment: Price below 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