Market Wrap: Stocks, Bonds, Commodities
US Wall Street’s major stock indices inched lower on Friday, led by a drop in technology heavyweights after reports of new coronavirus cases in China and other countries rise fears over its spread and impact on the global economy.
The Dow Jones Industrial Average down 227.57 points (0.78%), to 28,992.41, the S&P 500 dropped 35.48 points (1.05%) to 3,337.75 and the Nasdaq Composite lost 174.38 points (1.79%) to 9,576.59.
The World Health Organization said it was worried about the increased number of cases without any clear link to the epicentre of the outbreak in China
Asian stock indices declined on Monday as the fast spread of the coronavirus outside China increase fears and sent traders to buy gold and U.S. dollar as a safe haven.
MSCI’s broadest index Asia-Pacific stocks outside Japan off 1.82% at its lowest since early February. Japanese markets were closed for a public holiday and Australian benchmark index slid 2.25% while New Zealand was down about 2.0%.
European stocks were down on Friday, with the Stoxx Europe 50 Index slipped 0.59% to 3,800.38, Germany’s DAX dropped 0.62% to 13,579.33 and France’s CAC lost 0.54% to 6,029.72 and U.K.’s FTSE 100 declined 0.44% to 7,403.92.
U.S. government-bond prices jumped as demand for safe-haven assets grows. The benchmark U.S. 10-year Treasury yields down 0.25% to 1.473.
With the fears of China’s coronavirus taking a toll on the global economy, traders rush to risk-safety. The same has been pushing the yellow metal’s prices to multi-year tops off-late
The yellow metal has soared and jumped 18 dollars to 1261.50 an ounce this morning, having touched $1280.00 an ounce earlier on panic buying and stop-losses.
Crude Oil prices lost nearly 2.5% as the fast-spreading of the virus in other countries outside China put investors on worried about a hit to OIL demand.
Brent crude down 2.30% to $56.60 per barrel, while US West Texas Intermediate (WTI) crude lost 2.15% to $52.25.
Market Wrap: Forex
The dollar index decline began on Friday after data showed U.S. business activity stalled in February, indicating a contraction for the first time since 2016. The manufacturing sector also clocked its lowest reading since August.
The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, advanced 0.33% to 99.500
The safe-haven Japanese yen was almost flat against the U.S. dollar on Monday in Asia despite concerns that global coronavirus spread are worsening.
Other Commodity-linked currencies were broadly lower against the greenback. AUD/USD down 0.46% to 0.65960 and NZD/USD lower 0.41% to 0.63140.
EUR/USD Intraday: May Trend Revers
Our pivot point is at 1.08080
Preferable Price Action: Take long positions above pivot level with targets at 1.08290 & 1.08425 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.07923 & 1.07811
Comment: Pair bounce back from their multi-support area
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: Support at 1.29270
Our pivot point is at 1.29270
Preferable Price Action: Short positions below pivot with targets at 1.29050 & 1.28887 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.29542 and 1.29749
Comment: The RSI indicator below the 50-level mark and pair above its 55MA & below its 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 continues
Our pivot point is at 111.450
Preferable Price Action: Long position above 111.450 with the target at 111.811 and 112.056 in extension
Alternative Price Action: The downside breakout of pivot would call for 111.121 and 110.892
Comment: Pair above its 20MA and RSI near 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
AUD/USD Intraday: Under Pressure
Our pivot point is at 0.66150
Preferable Price Action: Short positions below pivot with targets at 0.65856 & 0.65667 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.66458 & 0.66680 as targets.
Comment: pair below its 55MA & 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
CRUDEOIL Intraday: May further price rise upward
Our pivot point is at 51.94
Preferable Price Action: Buy above pivot with targets at 52.55 and 52.95 in extension.
Alternative Price Action: Below pivots sell Oil with 51.56 & 51.26 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
XAU/USD Intraday: Trend Upside Continues
Our pivot point is at 1658.90
Preferable Price Action: Further upside to 1668.10 & 1675.29 level
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1649.70 and 1641.65
Comment: Gold tops $1,680 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: Under Pressure
Our pivot point is at 28,750
Preferable Price Action: Take long positions above pivot with targets at 28,944 & 29,099 in extension.
Alternative Price Action: Below 28,750 looks for further downside to 28,503 & 28,366
Comment: Pair is trading below its 20MA & 55MA and MACD in negative territory, RSI at Oversold area.
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