Market Wrap: Stocks, Bonds, Commodities
The S&P 500 rose 6% on Tuesday, clawing back a significant portion of Monday’s steep losses, as the Federal Reserve and the White House took further steps to boost liquidity and stem damage from the coronavirus outbreak that has gripped the global economy.
The U.S. major indices Dow Jones 30 advanced 1,049 points (5.22%) to 21,237, the S&P 500 added 143 points (6.01%) to 2,529 and the Nasdaq Composite rose 430 points (6.25%) to 7,335.
Asia Pacific major indices were under pressure in Wednesday trade like stocks on Wall Street future down overnight on the expectation that stimulus not able grapples with the coronavirus outbreak.
MSCI’s broadest index of Asia-Pacific shares outside Japan was down 1.58% to 536 level. Australian shares plunged 6.43%, while Japan’s Nikkei stock index slid 1.80%.
European stocks were advanced on Tuesday, with the Stoxx Europe 50 Index rose 3.27% to 2,530, Germany’s DAX added 2.25% to 8,939 and France’s CAC advanced 2.84% to 3,991 and U.K.’s FTSE 100 gain 2.79% to 5,294.
Benchmark 10-year U.S. Treasury down as market advanced on Tuesday, today advanced 0.26% to 0.999.
Oil prices steadied early on Wednesday after sliding to their lowest in four years, sapped by fears for fuel demand and the global economy amid a travel and social lockdowns triggered by the coronavirus epidemic in a number of countries around the world.
Brent crude down 1.00% at $29.70 per barrel, the lowest since early 2016. while US West Texas Intermediate (WTI) crude fell 2.00% to $26.70 per barrel.
Market Wrap: Forex
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, down 0.23% to 98.300.
The Euro US Dollar (EUR/USD) widely traded pair advanced by 0.15% today. This left the pairing trading around $1.10110.
The Japanese yen advanced against the U.S. dollar on Wednesday as the new coronavirus cases spread more in European countries. Today USD/JPY down 0.60% to 107.000 level.
Other commodity-related currency mixed against U.S dollar, AUD/USD flat to 0.59940 and NZD/USD rose 0.25% to 0.59430.
EUR/USD Intraday: Trend Continues down
Our pivot point is at 1.10650
Preferable Price Action: Take short positions below pivot level with targets at 1.09820 & 1.09477 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.11321 & 1.11694.
Comment: Pair below its 20MA and 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
GBP/USD Intraday: Bias Remain Bearish
Our pivot point is at 1.21500
Preferable Price Action: Short positions below pivot with targets at 1.20286 & 1.19562 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.22624 and 1.23223.
Comment: The RSI indicator below 50 level mark and pair below 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 intact upside
Our pivot point is at 106.460
Preferable Price Action: Long position above pivot with the target at 107.979 and 108.916 in extension.
Alternative Price Action: The downside breakout of pivot would call for 104.855 and 103.894.
Comment: Pair below 20MA & MACD near-zero 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
AUD/USD Intraday: Long term trend down
Our pivot point is at 0.60385
Preferable Price Action: Short positions below pivot with targets at 0.59503 & 0.59052 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.61300 & 0.61751 as targets.
Comment: Pair below 20MA and 55MA and RSI below 50 level mark.
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: at Multi-year low
Our pivot point is at 27.10
Preferable Price Action: Sell below pivot with targets at 25.83 and 24.91 in extension.
Alternative Price Action: Above pivots buy Oil with 28.56 & 29.46 as targets.
Comment: MACD in the negative zone and pair below 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
XAU/USD Intraday: Under pressure
Our pivot point is at 1540.20
Preferable Price Action: Further downside to 1494.04 & 1478.36 level.
Alternative Price Action: If price gives upside breakout of a pivot, then price extends to 1579.02 and 1594.70
Comment: RSI below 50 levels and price below 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
Dow jones Intraday: force-fully downtrend continues
Our pivot point is at 20,885
Preferable Price Action: Take short positions below pivot with targets at 19,790 & 19,142 in extension.
Alternative Price Action: Above 20,885 looks for further upside to 21,844 & 22,376.
Comment: Pair is trading below its 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