Market Wrap: Stocks, Bonds, Commodities
A surge in Delta variant infections sparked a broad sell-off on Wall Street on Monday as investors feared renewed COVID-19 shutdowns and protracted economic recovery. All three major U.S. stock indexes ended the session sharply lower, with the S&P and the Nasdaq suffering their largest one-day percentage drop since mid-May.
The Dow Jones Industrial Average fell 2.09% to end at 33,962.04 points, while the S&P 500 lost 1.58% to 4,258.63. The Nasdaq Composite dropped 1.06% to 14,275.00.
Asian major indices were down early on Tuesday as growing fears the spreading Delta variant of the coronavirus would harm the global economic recovery sent riskier assets, including oil, skidding sharply.
MSCI’s index of Asia-Pacific stocks outside Japan decline 0.95% to 846.31 levels. Australian index slipped 0.49% to 7,250.10. Japanese Nikkei traded lower 0.94% to 27,393.00.
European stocks were lower on Monday, with the Stoxx Europe 50 Index fell 2.21% to 3,946.70, Germany’s DAX down 2.19% to 15,203.40, and France’s CAC lost 2.16% to 6,320.50, and U.K.’s FTSE 100 slipped 1.96% to 6,870.95.
Benchmark 10-year U.S. Treasury fell as demand for safe risk grows again, today 10-year bond yields advance 1.49% to 1.199.
Brent Oil was steady after tumbling to an eight-week low amid a broader market rout stoked by a Covid-19 resurgence, which has raised concerns about the short-term outlook for energy demand.
Spot Brent crude oil rose 0.31% to $68.83 per barrel. US West Texas Intermediate crude gained 0.39% to $66.61 a barrel.
The yellow metal is higher 0.52% to 1817.80 dollars per ounce.
Market Wrap: Forex
The safe-haven U.S. dollar, yen, and Swiss franc rose on Monday as investors grew nervous about a raging coronavirus variant that could threaten the outlook for a global economic recovery.
Today, the U.S. dollar index measures the greenback against a trade-weighted basket of six major currencies, flat to 92.920.
The Euro US Dollar (EUR/USD) is a widely traded pair fell today. This left the pairing trading around $1.17840.
The Japanese yen lost against the U.S. dollar on Tuesday as the stock pushes lower. Today US/JPY gained 0.05% to 109.470 level.
Another commodity-related currency lower against the U.S dollar, AUD/USD fell 0.25% to 0.73240, and NZD/USD slipped 0.54% to 0.69030.
EUR/USD Intraday: Resistance at 1.17960
Our pivot point is at 1.17960
Preferable Price Action: Take short positions below pivot level with targets at 1.17620 & 1.17370 in extension.
Alternative Price Action: Above pivot looks for a further upside to 1.18320 & 1.18570.
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 on the downside
Our pivot point is at 1.37090
Preferable Price Action: Sell positions below pivot with targets at 1.36150 & 1.35630 in extension.
Alternative Price Action: The price above pivot would call for further upside to 1.38010 & 1.38550.
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
USD/JPY Intraday: Trend on the downside
Our pivot point is at 109.770
Preferable Price Action: Sell position below pivot with the target at 109.210 and 108.880 in extension.
Alternative Price Action: The upside breakout of the pivot would call for 110.320 and 110.640.
Comment: price above its 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 0.73610
Preferable Price Action: Sell Positions below pivot with targets at 0.72960 & 0.72550 in extension.
Alternative Price Action: Above pivot looks for a further upside with 0.74260 & 0.74680 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: Strong trend on the downside
Our pivot point is at 68.36
Preferable Price Action: Below pivots sell Oil with 65.39 & 63.69 as targets.
Alternative Price Action: Buy crude above pivot with targets at 71.25 and 72.97 in extension.
Comment: Crude is below its 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: Support at 1811.70
Our pivot point is 1811.70
Preferable Price Action: Further upside to 1821.70 & 1827.60.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1802.00 and 1795.90.
Comment: MACD in positive territory and price above it’s 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: Trend may change to upside
Our pivot point is 33,862.00
Preferable Price Action: Take long positions above pivot with targets at 34,373.00 & 34,681.00.
Alternative Price Action: Below 34,862.00 looks for further downside to 33,375.00 & 33,077.00.
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