Market Wrap: Stocks, Bonds, Commodities
U.S. stocks were lower after the close on Thursday, as losses in the Technology, Healthcare and Industrials sectors led shares lower as new cases outside china increases and now investor worried about the impact of the virus on the world economy.
The Dow Jones down 165.89 points (0.56%) to 29,232, the S&P 500 fell 9.87 points (0.29%) to 3,370 and the Nasdaq Composite flat to 9,732.74.
Regarding the U.S. economic data, the Philly Fed Manufacturing Index rose better than expected to 36.7 in January (10.1 estimated) from 17 in December. later today analyst expects Flash Manufacturing PMI rose to 51.5 from 51.9 earlier.
Asian shares were under pressure on Friday as fears over the spread of the coronavirus outside china sent funds fleeing to the sheltered shores of U.S. assets, lifting the U.S. dollar to three-year highs.
MSCI’s broadest index of Asia-Pacific shares outside Japan down 0.84% to 678 level. Australian shares were down 0.33%, while Japan’s Nikkei stock index dropped 0.30%.
European stocks were down on Thursday, with the Stoxx Europe 50 Index slipped 1.09% to 3,822.98, Germany’s DAX dropped 0.91% to 13,664 and France’s CAC lost 0.80% to 6,062.30 and U.K.’s FTSE 100 declined 0.27% to 7,436.64.
U.S. government-bond prices jumped as demand for safe-haven assets grows. The benchmark U.S. 10-year Treasury yields down 2.31% to 1.490.
The yellow metal is flashing green for the fourth straight day and is currently trading 0.65% higher to $1,628, the highest-level February 2013.
Crude Oil prices hit one-month highs on Thursday ahead of supportive data showing a smaller weekly build in U.S. Crude Inventory than thought, but gains were capped by worries about the spread of Coronavirus outside China.
Today, Brent crude down 1.10% to $58.80 per barrel, while US West Texas Intermediate (WTI) crude lost 0.90% to $53.10.
Market Wrap: Forex
U.S. Dollar Index climbed to the highest in almost three years as the rise in virus cases outside of China hit sentiment.
The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell by 0.01% 97.078.
The yen was headed for its worst week in two-and-a-half years on Friday, as worries about the coronavirus’ spread in South Korea and Japan drove funds from Asia to U.S. dollar.
NZD/USD consolidates in Asia as traders await the outcome of this weekend’s G20. Global PMIs will be in focus, the first evidence of how COVID-19 has impacted manufacturing and services.
EUR/USD Intraday: Near Multi-support level
Our pivot point is at 1.07850
Preferable Price Action: Take long positions above pivot level with targets at 1.08024 & 1.08119 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.07719 & 1.07620
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 1.29100
Preferable Price Action: Short positions below pivot with targets at 1.28784 & 1.28565 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.29441 and 1.29637
Comment: The RSI indicator near the 50-level mark and pair above 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: Trend Upside
Our pivot point is at 111.850
Preferable Price Action: Long position above 111.850 with the target at 112.233 and 112.432 in extension
Alternative Price Action: The downside breakout of pivot would call for 111.462 and 111.169
Comment: Pair 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: Downtrend Continues
Our pivot point is at 0.66241
Preferable Price Action: Short positions below pivot with targets at 0.65191 & 0.65781in extension.
Alternative Price Action: Above pivot looks for further upside with 0.66498 & 0.66669 as targets.
Comment: pair below its 55MA & 20MA and RSI at the 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: Near Support level
Our pivot point is at 52.91
Preferable Price Action: Buy above pivot with targets at 53.58 and 53.95 in extension.
Alternative Price Action: Below pivots sell Oil with 52.35 & 51.97 as targets.
Comment: Pair below its 55MA & 20MA and RSI below 50 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
XAU/USD Intraday: Trend Upside Continues
Our pivot point is at 1620.60
Preferable Price Action: Further upside to 1635.96 & 1641.90
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1616.43 and 1609.47
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: Trend may reverse
Our pivot point is at 29,234
Preferable Price Action: Take long positions above pivot with targets at 29,408 & 29,533 in extension.
Alternative Price Action: Below 29,259 looks for further downside to 28,992 & 28,878
Comment: Pair is trading below its 20MA & 55MA 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