Market Wrap: Stocks, Bonds, Commodities
US major stocks indices tumbled on Thursday, as a new wave of worried about the spread of the coronavirus and its economic impact gripped traders just one day after election results fueled a rally.
The Dow Jones 30 index dropped 969 points (3.58%) to 26,121, the S&P 500 fell 106 points (3.39%) to 3,023 and the Nasdaq Composite fell 279.49 points (3.1%) to 8,738.
Asian stock indices edged lower on Friday following another stock down rout as disruptions in the supply chain from the coronavirus beyond China worse, raising fears of a prolonged world economic slowdown.
MSCI’s broadest index of Asia-Pacific shares outside Japan was down 2.10% to 650 level. Australian shares fell 2.75%, while Japan’s Nikkei stock index slid 2.60%.
European stocks were down on Thursday, with the Stoxx Europe 50 Index declined 1.67% to 3,363.57, Germany’s DAX dropped 1.51% to 11,944 and France’s CAC fell 1.90% to 5,361 and U.K.’s FTSE 100 down 1.62% to 6,705.
Benchmark 10-year U.S. Treasury yields down as demand for a safe asset on Wednesday, today down 9.85% to 0.840.
The yellow metal advanced more than 1%, climbing the key $1,650 hurdle after California declared a state of emergency amid the outbreak that has killed 11 Americans so far and infected more than 100 others.
Crude Oil prices declined on Friday despite news that OPEC ministers agreed to cut oil output by 1.5 million barrels per day. The cut is reportedly to be conditional on approval from Russia.
Brent crude down 0.81% at $49.70 per barrel, while US West Texas Intermediate (WTI) crude fell 0.76% to $15.60 per barrel.
Market Wrap: Forex
The U.S. dollar index declined on Thursday as expectations of the Fed will reduce interest rates further, after cutting them by 50 basis points this week in an emergency move.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, down 0.20% to 96.600.
Other Commodity-linked currencies were broadly higher against the greenback. AUD/USD flat to 0.66095 and NZD/USD rose 0.30% to 0.63200.
The safe-haven Japanese yen gained on Tuesday as demand for safe-haven rose, today USD/JPY rose 0.20% to 106.00 level.
EUR/USD Intraday: Upside Trend Continues
Our pivot point is at 1.12032
Preferable Price Action: Take long positions above pivot level with targets at 1.11696 & 1.13010 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.14645 & 1.11018.
Comment: Price above 20MA & 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
GBP/USD Intraday: Bias remains Bullish
Our pivot point is at 1.29248
Preferable Price Action: Long positions above pivot with targets at 1.29958 & 1.30274 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.28658 and 1.28260.
Comment: The RSI indicator above 50 level mark and pair above its 20MA & 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: Downtrend Continues
Our pivot point is at 106.540
Preferable Price Action: Short position below 106.540 with the target at 105.614 and 105.198 in extension.
Alternative Price Action: The upside breakout of pivot would call for 107.136 and 107.448.
Comment: Pair below its 20MA & 55MA 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
AUD/USD Intraday: Support at 0.65860
Our pivot point is at 0.65860
Preferable Price Action: Long positions above pivot with targets at 0.66366 & 0.66647 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.65436 & 0.65191 as targets.
Comment: Price in consolidation mode from last 3 day.
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: Break Support level
Our pivot point is at 46.51
Preferable Price Action: Sell below pivot with targets at 44.81 and 44.08 in extension.
Alternative Price Action: Above pivots buy Oil with 47.85 & 48.73 as targets.
Comment: Price in the consolidation zone from last 3 day.
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: At previous resistance level
Our pivot point is at 1658.00
Preferable Price Action: Further upside to 1683 & 1696.87 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1635.50 and 1619.67
Comment: MACD in positive territory and pair above its 55MA and 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: Down more than 4% on Thursday.
Our pivot point is at 27,741
Preferable Price Action: Take long positions above pivot with targets at 26,477 & 26,979 in extension.
Alternative Price Action: Below 27,741 looks for further downside to 24,952 & 24,532.
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