Market Wrap: Stocks, Bonds, Commodities
The S&P 500 and Nasdaq rose to record closing highs on Wednesday as optimism that China would take more measures to prop up its economy eased concerns about the economic impact of the coronavirus epidemic.
The Dow Jones Industrial Average rose 115.84 points (0.4%) to 29,348.03, the S&P 500 gained 15.86 points (0.47%) to 3,386.15 and the Nasdaq Composite added 84.44 points (0.87%) to 9,817.18.
Regarding the U.S. economic data, The Labor Department said its producer price index for final demand increased 0.5% last month, above economist forecasts. The report also highlighted a sharp 9.2% rise in building permit to a rate of 1.5 million units.
Asian stocks edged up on Thursday, supported by a fall in coronavirus cases and expectations of more Chinese stimulus to offset the economic impact of the epidemic, while the Japanese yen nursed heavy losses after suffering its steepest drop in six months.
MSCI’s broadest index of Asia-Pacific shares outside Japan ticked up 0.1%. Buoyed by the cheaper yen, Japan’s Nikkei rallied 1.5%. Markets in Australia and New Zealand minted record highs.
European stocks were down on Tuesday, with the Stoxx Europe 50 Index slipped 0.32% to 3,851.95, Germany’s DAX dropped 0.26% to 13,754 and France’s CAC lost 0.15% to 6,103.97 and U.K.’s FTSE 100 flat to 7,454.
Oil prices rose on Thursday, extending gains from its previous session, as the market shifted focus to supply disruptions, while demand concerns eased some after a sharp drop in new coronavirus cases at the epicentre of the outbreak.
Yellow hit seven-year highs above $1,600 an ounce Wednesday, extending Tuesday’s first break of that level in six weeks, as equity global markets shot up in a relief rally from an easing in China’s pandemic.
Market Wrap: Forex
The U.S. dollar remained near three-year highs on Wednesday, underpinned by better-than-expected economic data. The greenback had a muted reaction to the minutes of the Federal Reserve January meeting, which suggesting interest rates will likely be on hold for a time.
The Japanese yen traded near a nine-month low versus the dollar on Thursday as risk appetite improved on expectations that China will continue to take steps to offset the economic impact of the coronavirus outbreak.
GBP/USD fell 0.60% to $1.29100, while the EUR/USD was flat at $1.07950
Other Commodity-linked currencies were broadly higher against the greenback. AUD/USD down 0.67% to 0.66300 and NZD/USD dropped 0.65% to 0.64400.
EUR/USD Intraday: May a temporary bounce back
Our pivot point is at 1.07860
Preferable Price Action: Take long positions above pivot level with targets at 1.08023 & 1.08118 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.07720 & 1.07622
Comment: Pair bounce back from their previous support level
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: Under pressure
Our pivot point is at 1.29280
Preferable Price Action: Short positions below pivot with targets at 1.28892 & 1.28661 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.29667 and 1.29901
Comment: The RSI indicator below the 50-level mark and pair below its 55MA & 20MA
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
JPY/USD Intraday: Break Resistance level
Our pivot point is at 111.635
Preferable Price Action: Long position above 111.635 with the target at 111.975 and 112.225 in extension
Alternative Price Action: The downside breakout of pivot would call for 111.304 and 111.093
Comment: Pair above its 20MA and 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: Downtrend Continues
Our pivot point is at 0.66570
Preferable Price Action: Short positions below pivot with targets at 0.66232 & 0.66057 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.66810 & 0.66980 as targets.
Comment: pair below its 55MA & 20MA and RSI at oversold level.
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: Upside Trend resume
Our pivot point is at 53.14
Preferable Price Action: Buy above pivot with targets at 53.93 and 54.45 in extension.
Alternative Price Action: Below pivots sell Oil with 52.39 & 51.86 as targets.
Comment: Pair above its 55MA & below its 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
XAU/USD Intraday: Trend Upside Continues
Our pivot point is at 1605.50
Preferable Price Action: Further upside to 1613.08 & 1616.66
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1599.78 and 1595.13
Comment: Gold tops $1,600 for the first time since 2013 as coronavirus fears spur haven demand
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: Uptrend Continues
Our pivot point is at 29,257
Preferable Price Action: Take long positions above pivot with targets at 29,364 & 29,426 in extension.
Alternative Price Action: Below 29,259 looks for further downside to 29,174 & 29,115
Comment: Pair is trading below its 20MA & 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