Market Wrap: Stocks, Bonds, Commodities
Equity markets around the world rose on Monday as speculation that central banks will cut interest rates to soften the economic blow of the coronavirus heartened investors and drove the US government debt yields to record lows.
The Dow Jones Industrial Average soared 1,293 points (5.10%) to 26,703. The S&P 500 advanced 136 points (4.60%) to 3,090 and the Nasdaq Composite rose 384.80 points (4.49%) to 8,952.17.
Asian stock indices rebound on Tuesday on raising speculation that policymakers around the world would move to ease the economic fallout from the spreading coronavirus.
MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.54% to 648 level. Japan’s Nikkei tumbled 1.10% while South Korea’s index added 2.4% and Australian market advanced 1.8% ahead of an expected rate cut by the Reserve Bank of Australia.
European stocks were down on Monday, with the Stoxx Europe 50 Index rose 0.28% to 3,338.83, Germany’s DAX dropped 3.20% to 12,367 and France’s CAC lost 3.32% to 5,495 and U.K.’s FTSE 100 declined 3.49% to 6,796.
Benchmark 10-year U.S. Treasury yields rose as demand for a risky asset on Monday, today higher 3.45% to 1.125.
Crude Oil prices gain 4% on Monday, reversing an early-down to multi-year lows as hopes of a deeper output cut by OPEC+ and stimulus from central banks and Government.
Brent crude up 1.20% at $52.51 per barrel, while US West Texas Intermediate (WTI) crude advanced 2.50% to $47.55 per barrel.
Yellow metal prices traded higher on Tuesday following news of potential monetary policy easing by central banks. Spot gold rose 0.15% to $1596 per ounce.
Market Wrap: Forex
Today, The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose 0.10% to 98.390.
The Australian dollar advanced against U.S. dollar on Tuesday in Asia after the RBA reduce its cash rate by 25bps to a record low of 0.50%.
The euro at its highest in two months against the U.S. dollar on Tuesday, on hopes that coronavirus driven monetary easing in America.
New Zealand’s Treasury said that a virus outbreak having an effective negative impact on the economy. NZD/USD Trading flat to 0.62570.
Japanese yen strengthened against the dollar as demand for a safe-haven rose.
EUR/USD Intraday: Trend upside continues
Our pivot point is at 1.10960
Preferable Price Action: Take long positions above pivot level with targets at 1.11596 & 1.11911 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.10247 & 1.09869
Comment: MACD in positive territory 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
GBP/USD Intraday: Bias Remain Bearish
Our pivot point is at 1.28075
Preferable Price Action: Short positions below pivot with targets at 1.27586 & 1.27340 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.28364 and 1.28568.
Comment: The RSI indicator above 50 level mark and pair below its 55MA.
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: In a consolidation zone
Our pivot point is at 107.550
Preferable Price Action: Long position above 107.550 with the target at 108.405 and 108.864 in extension.
Alternative Price Action: The downside breakout of pivot would call for 106.957 and 106.576
Comment: Pair below its 20MA ann 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
AUD/USD Intraday: Intraday Support at 0.65130
Our pivot point is at 0.65130
Preferable Price Action: Long positions above pivot with targets at 0.65673 & 0.65861 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.64819 & 0.64624 as targets.
Comment: pair above its 55MA & 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
CRUDEOIL Intraday: Trend change to the upside
Our pivot point is at 46.85
Preferable Price Action: Buy above pivot with targets at 48.37 and 49.03 in extension.
Alternative Price Action: Below pivots sell Oil with 45.75 & 44.92 as targets.
Comment: Pair above its 55MA & below 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: Bias Remain Bullish
Our pivot point is at 1585.72
Preferable Price Action: Further upside to 1607.86 & 1616.94 level
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1572.59 and 1563.06
Comment: MACD in positive territory and pair above 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
Dow jones Intraday: Jump 5% on Monday
Our pivot point is at 26,232
Preferable Price Action: Take long positions above pivot with targets at 26,768 & 27,041 in extension.
Alternative Price Action: Below 26,232 looks for further downside to 25,731 & 25,418.
Comment: Pair is trading above its 55MA and MACD in positive territory 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