Market Wrap: Stocks, Bonds, Commodities
US major stocks indices roared back on Tuesday, rebounding from the brink of bear market confirmation as bargain-hunting and hopes of government stimulus calmed investors’ fears surrounding the coronavirus and growing signs of an imminent recession.
The Dow Jones Industrial Average advanced 1,167.14 points (4.90%) to 25,018.16, the S&P 500 rose 136 points (4.95%) to 2,882and the Nasdaq Composite gained 393 points (4.95%) to 8,344.
Asian shares fell on Wednesday as growing scepticism about Washington’s stimulus package to fight the coronavirus outbreak knocked the steam out of an earlier rally.
MSCI’s broadest index of Asia-Pacific shares outside Japan down 0.85% to 619 level. Australian shares were down 3.5%. Japan’s Nikkei index slump 2.27%.
European stocks were advanced on Thursday, with the Stoxx Europe 50 Index added 2.00% to 2,970, Germany’s DAX rose 1.76% to 10,616 and France’s CAC gained 2.10% to 4,733 and U.K.’s FTSE 100 advanced 1.64% to 6,0570.
Benchmark 10-year U.S. Treasury yields down as demand for a safe asset on Wednesday, today down 5.0% to 0.710.
The yellow metal rose on Wednesday after a steep fall in the previous session, as doubts about a stimulus package proposed by U.S. President Donald Trump to soften the economic impact of the coronavirus epidemic weighed on risk sentiment. gold was up 0.4% at $1,664 per ounce.
Oil prices jumped over 8% on Tuesday, bouncing from the biggest rout in nearly 30 years a day earlier, as the possibility of economic stimulus encouraged buying and US producers slashed spending in a move that could cut output.
Brent crude down 0.1% at $37 per barrel, while US West Texas Intermediate (WTI) crude fell 0.70% to $34.50 per barrel.
Market Wrap: Forex
The U.S. dollar index declined on Tuesday against the euro and yen as traders await details of upcoming supportive economic measures.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, down 0.20% to 96.200.
The Japanese yen resumed gains against the U.S. dollar on Wednesday in Asia as equity markets turned lower in early afternoon trade.
He GBP/USD pair traded 0.6% higher to 1.1343 amid expectations that the U.K. will deliver a big stimulus package and measures later in the day during the budget announcement to help combat the Covid-19 outbreak.
EUR/USD Intraday: May trend reverse
Our pivot point is at 1.13696
Preferable Price Action: Take short positions below pivot level with targets at 1.12833 & 1.12325 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.14384 & 1.14774.
Comment: Price below 20MA & 55MA 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
GBP/USD Intraday: Bias remains Bearish
Our pivot point is at 1.29839
Preferable Price Action: Short positions below pivot with targets at 1.28618 & 1.27917 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.31044 and 1.31654.
Comment: The RSI indicator at 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: Trend may change
Our pivot point is at 103.570
Preferable Price Action: Long position above 103.570 with the target at 105.579 and 106.457 in extension.
Alternative Price Action: The downside breakout of pivot would call for 102.000 and 101.192.
Comment: Pair above its 20MA & 55MA 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
AUD/USD Intraday: Bias upside
Our pivot point is at 0.64654
Preferable Price Action: Long positions above pivot with targets at 0.657584 & 0.65964 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.63900 & 0.63549 as targets.
Comment: Pair suffer from Large volatility in price.
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: Give Bouce back after sharp fell
Our pivot point is at 36.50
Preferable Price Action: Sell below pivot with targets at 32.55 and 30.53 in extension.
Alternative Price Action: Above pivots buy Oil with 39.53 & 41.55 as targets.
Comment: Price war between OPEC and Russia continues.
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: Intraday Support at 1649.72
Our pivot point is at 1649.72
Preferable Price Action: Further upside to 1675.58 & 1689.70 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1626.06 and 1614.14.
Comment: MACD in Negative 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: advanced nearly 5% on Tuesday.
Our pivot point is at 25,085
Preferable Price Action: Take short positions below pivot with targets at 24,031 & 23,665 in extension.
Alternative Price Action: above 25,085 looks for further upside to 25,903 & 25,375.
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