Market Wrap: Stocks, Bonds, Commodities
U.S. stocks closed mostly lower on Wednesday, with the S&P 500 falling from a record high after data signaled a slowdown in jobs growth in July, and General Motors tracked its worst day since early March.
The Dow Jones Industrial Average declined 323.73 points (0.92%) to 34,792.67, the S&P 500 fell 20.47 points (0.46%) to 4,402.68 and the Nasdaq Composite added 19.2 points (0.13%) to 14,780.50.
Asian shares held on to recent gains in morning trading on Thursday, despite hawkish remarks from a senior official at the U.S. Federal Reserve, that boosted the dollar while weighing on risk appetite, and uncertainty about Chinese policy.
MSCI’s index of Asia-Pacific stocks outside Japan is down 0.60% to 834.29 levels. Australian index rose 0.38% to 7,503.20. Japanese Nikkei slipped 0.21% to 27,584.08.
European stocks were higher on Thursday, with the Stoxx Europe 50 Index gained 0.43% to 4,163.10, Germany’s DAX rose 0.18% to 15,720.85, and France’s CAC up 0.54% to 6,782.14, and U.K.’s FTSE 100 down 0.05% to 7,121.05.
Benchmark 10-year U.S. Treasury fell as demand for safe risk grows again, today 10-year bond yields gained 0.52% to 1.190.
Oil prices rose on Thursday, supported by tensions in the Middle East, but failed to recoup most of the previous day’s losses after a surprise build in crude stockpiles in the United States, the world’s top oil consumer.
Spot Brent crude oil slipped 0.41% to $70.10 per barrel. US West Texas Intermediate crude lost 0.34% to $67.92 a barrel.
The yellow metal is lower 0.11% to 1812.53 dollars per ounce.
Market Wrap: Forex
The dollar was poised to push higher on Thursday as hawkish comments from the U.S. Federal Reserve led markets to bring forward the likely timing of a policy tightening there, while the action in Europe and Japan remain distant prospects.
Today, the U.S. dollar index measures the greenback against a trade-weighted basket of six major currencies, flat to 92.263.
The Euro US Dollar (EUR/USD) is a widely traded pair that gained 0.05% today. This left the pairing trading around $1.18350.
The Japanese yen lost against the U.S. dollar on Thursday as the stock pushes higher. Today US/JPY rose 0.14% to 109.610 level.
Another commodity-related currency higher against the U.S dollar, AUD/USD gained 0.24% to 0.73940, and NZD/USD advancing 0.14% to 0.70550.
EUR/USD Intraday: Resistance at 1.18530
Our pivot point is at 1.18530
Preferable Price Action: Take short positions below pivot level with targets at 1.18170 & 1.17960 in extension.
Alternative Price Action: Above pivot looks for a further upside to 1.18880 & 1.19090.
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: In a consolidation zone
Our pivot point is at 1.39070
Preferable Price Action: Sell positions below pivot with targets at 1.38550 & 1.38250 in extension.
Alternative Price Action: The price above pivot would call for further upside to 1.39580 & 1.39880.
Comment: Price below its 20MA & 55MA and RSI above 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 upside
Our pivot point is at 109.480
Preferable Price Action: Buy position above pivot with the target at 109.880 and 110.110 in extension.
Alternative Price Action: The downside breakout of the pivot would call for 109.060 and 108.820.
Comment: price above its 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: Support at 0.73800
Our pivot point is at 0.73800
Preferable Price Action: Buy Positions above pivot with targets at 0.74110 & 0.74260 in extension.
Alternative Price Action: Below pivot looks for a further downside with 0.73490 & 0.73330 as targets.
Comment: Pair 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
CRUDEOIL Intraday: Resistance area at 68.99
Our pivot point is at 68.99
Preferable Price Action: Below pivots sell Oil with 67.08 & 65.90 as targets.
Alternative Price Action: Buy crude above pivot with targets at 70.88 and 72.15 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: In a consolidation area
Our pivot point is 1814.00
Preferable Price Action: Further downside to 1805.50 & 1800.40.
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1822.90 and 1828.30.
Comment: MACD in negative territory and price below 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: Strong resistance at 34,891.00
Our pivot point is 34,891.00
Preferable Price Action: Take short positions below pivot with targets at 34,736.00 & 34,656.00.
Alternative Price Action: Above 34,891.00 looks for further upside to 35,055.00 & 35,143.00.
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