Market Wrap: Stocks, Bonds, Commodities
The S&P 500 and Nasdaq indexes closed higher on Wednesday to kick off the third quarter as increasing optimism for a safe and effective COVID-19 vaccine eased concerns that another round of business lockdown was likely.
The Dow Jones Industrial Average fell 77.91 points (0.30%) to 25,734.97, the S&P 500 gained 15.57 points (0.50%) to 3,115.86 and the Nasdaq Composite added 95.86 points (0.95%) to 10,154.63.
Asian stocks were set to track Wall Street gains on Thursday as investors cheered signs the global economy was emerging from its coronavirus hibernation although trade is likely to be choppy as fresh concerns about Hong Kong keep investors cautious.
MSCI’s index of Asia-Pacific stocks outside Japan gain 1.60% to 661.20 levels. Australian index rose 1.66% to 6,032.70. Japan’s Nikkei gained 0.11% to 22,145.50.
European stocks were higher on Thursday, with the Stoxx Europe 50 Index gain 0.87% to 3,257.25, Germany’s DAX rose 0.92% to 12,374.65 and France’s CAC advance 0.76% to 4,964.51 and U.K.’s FTSE 100 up 0.72% to 6,199.70.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield fell 1.14% to 0.674.
Oil prices dipped on Thursday after the United States recorded its biggest one-day spike in coronavirus cases and California reimpose some lockdown measures, stoking worries a resurgence in COVID-19 cases will stall recovery in fuel demand.
Spot Brent crude Oil advance 0.70% to $42.32 per barrel. US West Texas Intermediate crude futures were higher 0.73% to $40.13 a barrel.
Gold was down on Thursday with investor sentiment boosted by positive results from yet another potential COVID-19 vaccine. Today, Bullion prices slightly down to $1769.50 per ounce.
Market Wrap: Forex
The dollar was down on Thursday morning in Asia, retreating on the back of positive results from yet another vaccine candidate for COVID-19.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, down 0.15% to 97.015.
The Euro US Dollar (EUR/USD) widely traded pair rose by 0.20% today. This left the pairing trading around $1.12720.
The Japanese yen down against the U.S. dollar on Tuesday as stock pushes higher. Today US/JPY rose 0.10% to 107.500 level.
Other commodity-related currency broadly higher against U.S dollar, AUD/USD gained 0.15% to 0.69240 and NZD/USD climbed 0.54% to 0.65010.
EUR/USD Intraday: Support at 1.12480
Our pivot point is at 1.12480
Preferable Price Action: Take Long positions above level with targets at 1.12960 & 1.13208 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.12003 & 1.11749.
Comment: Pair above 55MA & 20MA 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
GBP/USD Intraday: Trend upside
Our pivot point is at 1.24620
Preferable Price Action: Long positions above pivot with targets at 1.25206 & 1.25508 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.24014 & 1.23688.
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
USD/JPY Intraday: Bias on the downside
Our pivot point is at 107.700
Preferable Price Action: Short position below pivot with the target at 107.277 and 107.054 in extension.
Alternative Price Action: The upside breakout of pivot would call for 108.112 and 108.319.
Comment: Short term Trend on the downside.
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 0.69070
Our pivot point is at 0.69070
Preferable Price Action: Long positions above pivot with targets at 0.69510 & 0.69762 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.68606 & 0.68344 as targets.
Comment: Pair above 55MA & 20MA 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
CRUDEOIL Intraday: Price show Strength
Our pivot point is at 39.55
Preferable Price Action: Buy crude above pivot with targets at 40.65 and 41.15 in extension.
Alternative Price Action: Below pivots sell Oil with 38.42 & 37.87 as targets.
Comment: Crude 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
XAU/USD Intraday: Strong Trend upside
Our pivot point is at 1763.80
Preferable Price Action: Further upside to 1774.94 & 1780.90 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1753.74 and 1747.60.
Comment: RSI at 50 level mark and price above its 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: Support at 25660.80
Our pivot point is at 25660.80
Preferable Price Action: Take buy positions above pivot with targets at 26081.65 & 26330.97 in extension.
Alternative Price Action: Below 25660.80 looks for further downside to 25236.42 & 24983.37.
Comment: Price above 55MA & 20MA 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 produced7