Market Wrap: Stocks, Bonds, Commodities
US stocks rallied on Thursday as hopes for a truce in the price war between Saudi Arabia and Russia and a cut in oil output drove gains, taking some sting out of a shocking jump in Americans filing jobless claims due to coronavirus-led lockdowns.
The United States of America published announced overnight that a record 6.648 million people filed for unemployment claim last week as economy go through tuff phase.
The Dow Jones Industrial Average advanced 2.24% to 21,414.05, the S&P 500 rose 2.28% to 2,527.10 and the Nasdaq Composite gained 126.73 points, or 1.72%, to 7,487.25.
Asian markets on Friday looked to latch onto Wall Street’s overnight gains after crude prices notched their biggest one-day surge on record, helping offset concerns about the depth of a global recession.
MSCI’s index of Asia-Pacific stocks outside Japan declined 0.60% to 550.10 levels. Australian index was down 1.70%, while Japan’s Nikkei stock index flat to 17,820.
European stocks were slipped on Friday, with the Stoxx Europe 50 Index added 0.31% to 2688.49, Germany’s DAX rose 0.27% to 9,570.82 and France’s CAC gained 0.33% to 4,220.96 U.K.’s FTSE 100 advanced 0.47% to 5,480.22.
Benchmark 10-year U.S. Treasury advanced as demand for safe asset grow again, today 10-year bond yield down 4.40% to 0.599.
U.S. Crude Oil WTI Futures jumped almost 35% in the last session as U.S. President Donald Trump tweeted that Saudi Arabia and Russia had agreed to a cut of approximately 10 million barrels, and maybe substantially more.
Oil prices fell on Friday morning in Asia as investors express doubts about a U.S.-mediated truce between Russia and Saudi Arabia.
Brent crude Oil flat to $30.500 per barrel. while US West Texas Intermediate (WTI) crude down 1.60% to $26.80 per barrel.
The yellow metal prices were slipped in early morning on Friday even as the U.S. reported a record number of unemployment claims the day before. Today Gold down 0.54% to $1612 per ounce.
Market Wrap: Forex
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, down 0.11 to 99.640.
The Euro US Dollar (EUR/USD) widely traded pair down by 0.17% today. This left the pairing trading around $1.09435.
Other commodity-related currency broadly higher against U.S dollar, AUD/USD up 0.30% to 0.60860 and NZD/USD rose 0.58% to 0.59390.
The Japanese yen down against the U.S. dollar on Thursday as stock pushes higher. Today US/JPY up 0.20% to 107.335 level.
EUR/USD Intraday: Resistance at 1.08750
Our pivot point is at 1.08750
Preferable Price Action: Take Short positions below pivot level with targets at 1.07807 & 1.07341 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.0264 & 1.09729.
Comment: pair below 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
GBP/USD Intraday: Support at 1.23300750
Our pivot point is at 1.23300
Preferable Price Action: Long positions above pivot with targets at 1.24248 & 1.24722 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.22770 & 1.22402.
Comment: The RSI indicator above 50 levels and pair 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
JPY/USD Intraday: In consolidation zone
Our pivot point is at 107.500
Preferable Price Action: Long position above pivot with the target at 108.525 and 109.004 in extension.
Alternative Price Action: The downside breakout of pivot would call for 107.000 and 106.560.
Comment: Pair 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
AUD/USD Intraday: Bias remain bearish
Our pivot point is at 0.60800
Preferable Price Action: Short positions below pivot with targets at 0.60118 & 0.59646 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.61323 & 0.61790 as targets.
Comment: Pair below its 20MA & 55MA and RSI near 50 levels 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: May deal will complete between Russia-UAE
Our pivot point is at 23.35
Preferable Price Action: Buy above pivot with targets at 25.98 and 26.99 in extension.
Alternative Price Action: Below pivots sell Oil with 22.02 & 21.01 as targets.
Comment: MACD in the positive zone 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
XAU/USD Intraday: Support at $1600
Our pivot point is at 1600.00
Preferable Price Action: Further upside to 1627.52 & 1641.47 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1582.11 and 1568.48.
Comment: demand for safe heaven rise
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: Support at 20,950
Our pivot point is at 20950.00
Preferable Price Action: Take Long positions above pivot with targets at 21642.54 & 22109.14 in extension.
Alternative Price Action: Below 20950.00 looks for further downside to 20463.75 & 20085.55.
Comment: traders bias may change to upside.
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