Market Wrap: Stocks, Bonds, Commodities
The Nasdaq and S&P 500 hit all-time highs on Monday, fueled by tech stocks as investors expect a robust earnings season while interest rates remain low. Big tech companies including Facebook Inc, Netflix Inc, Twitter Inc, and Nvidia Corp were among the biggest boosts to the S&P 500 and the Nasdaq.
The Dow Jones Industrial Average fell 150.57 points (0.44%) to close at 34,283.27. The S&P 500 pared earlier losses and advanced from Friday’s record high by gaining 9.91 points (0.23%) to 4,290.61. The Nasdaq Composite added 140.12 points (0.98%) to 14,500.51.
Asian shares edged lower on Tuesday on concerns new coronavirus outbreaks in the region could undercut an economic recovery even as robust momentum in the United States prompts the Federal Reserve to contemplate a quicker exit from accommodative policy.
MSCI’s index of Asia-Pacific stocks outside Japan slipped 0.48% to 888.80 levels. Australian index fell 0.08% to 7,301.20. Japanese Nikkei traded lower 0.81% to 28,813.50.
European stocks were higher on Tuesday, with the Stoxx Europe 50 Index gained 0.35% to 4,103.80, Germany’s DAX rose 0.63% to 15,651.60, and France’s CAC up 0.28% to 6,576.55, and U.K.’s FTSE 100 flat to 7,078.50.
Benchmark 10-year U.S. Treasury rose as demand for safe risk grows again, today 10-year bond yields gained 0.589% to 1.487.
Oil held losses below $73 a barrel as a coronavirus resurgence raised concerns about the demand recovery ahead of an OPEC+ meeting this week that’s expected to lead to increased output from the alliance.
Spot Brent crude oil lost 0.21% to $73.93 per barrel. US West Texas Intermediate crude down 0.26% to $72.72 a barrel.
The yellow metal slipped 0.29% to 1775.15 dollars per ounce.
Market Wrap: Forex
The dollar hovered below a two-month high versus major counterparts on Tuesday, with traders largely sidelined ahead of a closely watched U.S. jobs report, which could sway the timing of an exit from Federal Reserve stimulus.
Today, the U.S. dollar index measures the greenback against a trade-weighted basket of six major currencies, advanced 0.05% to 91.922.
The Euro US Dollar (EUR/USD) is a widely traded pair that slipped 0.05% today. This left the pairing trading around $1.19160.
The Japanese yen gained against the U.S. dollar on Tuesday as the stock pushes higher. Today US/JPY flat to 110.610 level.
Another commodity-related currency mixed against the U.S dollar, AUD/USD fell 0.10% to 0.75600, and NZD/USD gained 0.10% to 0.70280.
EUR/USD Intraday: Break support level
Our pivot point is at 1.19240
Preferable Price Action: Take long positions above pivot level with targets at 1.19600 & 1.19850 in extension.
Alternative Price Action: Below pivot looks for a further downside to 1.18810 & 1.18570.
Comment: Pair below 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: Resistance at 1.38880
Our pivot point is at 1.38880
Preferable Price Action: Sell positions below pivot with targets at 1.38260 & 1.37920 in extension.
Alternative Price Action: The price above pivot would call for further upside to 1.39420 & 1.39830.
Comment: Price 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
USD/JPY Intraday: Trend on the upside
Our pivot point is at 110.560
Preferable Price Action: Buy position above pivot with the target at 110.840 and 110.990 in extension.
Alternative Price Action: The downside breakout of pivot would call for 110.260 and 111.110.
Comment: price above its 55MA & 20MA 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 0.75660
Preferable Price Action: Sell Positions below pivot with targets at 0.75240 & 0.75060 in extension.
Alternative Price Action: Above pivot looks for a further upside with 0.76080 & 0.76280 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 73.11
Preferable Price Action: Above pivots buy Oil with 73.25 & 74.22 as targets.
Alternative Price Action: Sell crude below pivot with targets at 71.05 and 70.16 in extension.
Comment: Crude is above its 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: Break support level
Our pivot point is 1780.00
Preferable Price Action: Further downside to 1765.20 & 1757.80.
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1794.00 and 1801.50.
Comment: MACD in negative territory and price below its 20MA & 50MA.
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: Strong trend on the upside
Our pivot point is 34,243.00
Preferable Price Action: Take Buy positions above pivot with targets at 34,452.00 & 34,551.00.
Alternative Price Action: Below 34,243.00 looks for further downside to 34,038.00 & 34,941.00.
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