Market Wrap: Stocks, Bonds, Commodities
A broad sell-off sent US stocks reeling on Tuesday after a hotter-than-expected inflation report dashed hopes that the Federal Reserve could relent and scale back its policy tightening in the coming months.
The Dow Jones Industrial Average fell 1276.37 points to 31,104.97, the S&P 500 lose 177.72 points to 3,932.69 and the Nasdaq Composite subtract 632.84 points to 11,633.57.
MSCI’s index of Asia-Pacific stocks outside Japan is drop 1.95% to 617.40 levels. Australian index lower 2.58% to 6,828.60. Japanese Nikkei Index drop 2.78% to 27,818.62.
European stocks were negative on Wednesday, with the Stoxx Europe 50 Index fell 0.22% to 3,578.45, Germany’s DAX drop 0.36% to 13,142.54, and France’s CAC subtract 0.27% to 6,228.78, and U.K.’s FTSE 100 slipped 0.85% to 7,325.90.
Benchmark 10-year U.S. Treasury fell as demand for safe assets ascend again, today 10-year bond yields a positive 0.19% to 3.4290.
Growth in global oil demand is set to grind to a halt in the fourth quarter of this year as an economic slowdown deepens, the International Energy Agency (IEA) said on Wednesday, but said it would resume strongly in 2023.
Spot Brent crude oil subtract 0.15% to $92.95 per barrel. US West Texas Intermediate crude is down 0.02% to $87.34 a barrel.
The yellow metal gold is decline 0.14% to 1,714.95 dollars per ounce.
Market Wrap: Forex
The U.S. dollar stabilized in early European trade Wednesday, pausing for breath after the previous session’s sharp gains in the wake of the hotter-than-expected U.S. inflation report.
Today, the U.S. dollar index measures the Greenback against a trade-weighted basket of six major currencies, which is fell 0.34% to 109.150.
The Euro US Dollar (EUR/USD) is a widely traded pair that is up 0.32% today. This left the pair trading around $1.00020.
The Japanese yen was positive against the U.S. dollar on Wednesday as the stock up. Today USD/JPY is drop 1.05% to 143.030 level.
Another commodity-related currency positive against the U.S dollar, AUD/USD surged 0.13% to 0.67390, and NZD/USD up 0.18 to 0.60070 level.
EUR/USD Intraday: Trend on the downside
Our pivot point is at 1.00120
Preferable Price Action: Take sell positions below pivot level with targets at 0.99130 & 0.98260 in extension.
Alternative Price Action: Above pivot looks for a further upside to 1.01130 & 1.01920.
Comment: RSI below 50 levels and Pairs below 55MA.
Green Lines Indicate Resistance Levels – Red Lines Indicate Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
GBP/USD Intraday: In a consolidation zone
Our pivot point is at 1.15000
Preferable Price Action: Buy positions above pivot with targets at 1.16020 & 1.16850 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.14020 & 1.13190.
Comment: RSI at 50 levels and Pairs above 20MA.
Green Lines Indicate Resistance Levels – Red Lines Indicate Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
USD/JPY Intraday: Trend on the downside
Our pivot point is at 143.990
Preferable Price Action: Sell position below pivot with the target at 142.360 and 141.120 in extension.
Alternative Price Action: The upside breakout of the pivot would call for 145.490 and 146.740.
Comment: MACD is negative territory and Pairs below its 20MA & 55MA.
Green Lines Indicate Resistance Levels – Red Lines Indicate Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
AUD/USD Intraday: Trend on the downside
Our pivot point is at 0.67560
Preferable Price Action: Sell Positions below pivot with targets at 0.66790 & 0.66210 in extension.
Alternative Price Action: Above pivot looks for a further upside with 0.68260 & 0.68830 as targets.
Comment: RSI below 50 levels and Pairs below 55MA.
Green Lines Indicate Resistance Levels – Red Lines Indicate Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
CRUDEOIL Intraday: Resistance level at 87.60
Our pivot point is at 87.60
Preferable Price Action: Below pivots sell oil with 85.24 & 83.80 as targets.
Alternative Price Action: Buy crude above pivot with targets at 89.59 and 91.26 in extension.
Comment: MACD is in the negative territory and Pairs below 55MA.
Green Lines Indicate Resistance Levels – Red Lines Indicate Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
XAU/USD Intraday: Major support level at 1701.20
Our pivot point is 1701.20
Preferable Price Action: Further upside to 1718.50 and 1733.60
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1684.80 and 1671.90.
Comment: MACD is positive territory and Pairs above 20MA.
Green Lines Indicate Resistance Levels – Red Lines Indicate Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
Dow Jones Intraday: Trend on the downside
Our pivot point is 31,480.00
Preferable Price Action: Take sell positions below pivot with targets at 30,873.00 & 30,430.00.
Alternative Price Action: Above 31,480.00 looks for further upside to 32,018.00 & 32,427.00.
Comment: RSI below 50 levels and Pairs below 55MA.
Green Lines Indicate Resistance Levels – Red Lines Indicate Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced