Market Wrap: Stocks, Bonds, Commodities
A late-session rally pushed Wall Street to solid gains on Tuesday as market participants looked past widespread social unrest and pandemic worries to focus instead on easing lockdown restrictions and signs of economic recovery.
The Dow Jones Industrial Average rose 267.63 points (1.05%) to 25,742.65, the S&P 500 gained 25.09 points (0.82%) to 3,080.82 and the Nasdaq Composite added 56.33 points (0.59%) to 9,608.38.
Asian shares vaulted to a nearly three-month high on Wednesday as hopes of more stimulus and a further easing in social restrictions around the world outweighed caution over a host of worries from the coronavirus to growing U.S. civil unrest.
MSCI’s index of Asia-Pacific stocks outside Japan rose 1.62% to 634.20 levels. Australian index gained 1.83% to 5,941.10. Japan’s Nikkei rose 1.23% to 22,613.20.
European shares joined a global rally on Wednesday as signs of a pickup in China’s services sector activity offset concerns about Sino-U.S. trade tensions and widespread civil unrest in the United States.
European stocks were higher on Wednesday, with the Stoxx Europe 50 Index rose 1.60% to 3,209.27, Germany’s DAX gained 1.80% to 12,236.87 and France’s CAC climbed 1.70% to 4,942.48 and U.K.’s FTSE 100 advanced 1.72% to 6,294.09.
Benchmark 10-year U.S. Treasury rose as demand for safe asset grow again, today 10-year bond yield rose 3.55% to 0.705.
Oil prices rose on Tuesday, extending gains for a fourth straight session, amid signs that producers are cutting output as promised just as demand picks up, stoked by more countries easing out of curbs imposed to counter the coronavirus pandemic.
Spot Brent crude oil rose 1.10% to $40.02 per barrel. US West Texas Intermediate crude higher 1.55% to $37.41 a barrel.
Gold was down on Wednesday morning in Asia with increased investor optimism over the global economic recovery from the COVID-19 virus as countries continue to loosen lockdowns and restart their economies.
Market Wrap: Forex
The dollar has sold off in early European trade Wednesday, with riskier assets in demand as investors look for more fiscal stimulus amid signs of a global economic recovery.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, down 0.25% to 97.412.
The Euro US Dollar (EUR/USD) widely traded pair higher by 0.37% today. This left the pairing trading around $1.12100. The pound traded 0.33% higher to 1.25910.
The Japanese yen rose against the U.S. dollar on Friday as demand for safe currency rose. Today US/JPY rose 0.10% to 108.750.
Other commodity-related currency broadly edged higher against U.S dollar, AUD/USD rose 0.15% to 0.69010 and NZD/USD climbed 0.35% to 0.63910.
EUR/USD Intraday: Support at 1.11870
Our pivot point is at 1.11870
Preferable Price Action: Take Long positions above pivot level with targets at 1.12406 & 1.12652 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.11328 & 1.11074.
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
GBP/USD Intraday: trend Upside
Our pivot point is at 1.25400
Preferable Price Action: Long positions above pivot with targets at 1.26150 & 1.26451 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.24606 & 1.24329.
Comment: RSI above 50 level 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
JPY/USD Intraday: Break resistance area
Our pivot point is at 108.500
Preferable Price Action: Long position above pivot with the target at 109.026 and 109.276 in extension.
Alternative Price Action: The downside breakout of pivot would call for 107.933 and 107.672.
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
AUD/USD Intraday: Strong trend rise
Our pivot point is at 0.68900
Preferable Price Action: Long positions above pivot with targets at 0.69548 & 0.69869 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.68198 & 0.67872 as targets.
Comment: MACD in the positive zone and RSI at 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: Trend Upside
Our pivot point is at 37.10
Preferable Price Action: Buy crude above pivot with targets at 38.41 and 39.04 in extension.
Alternative Price Action: Below pivots sell Oil with 35.72 & 35.05 as targets.
Comment: MACD in the positive zone and price above 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: Trend on the downside
Our pivot point is at 1726.00
Preferable Price Action: Further downside to 1713.60 & 1707.82 level.
Alternative Price Action: If price gives upside breakout of a pivot, then price extends to 1738.25 and 1744.03.
Comment: RSI at 50 level mark 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: Bias on the upside
Our pivot point is at 25600.00
Preferable Price Action: Take buy positions above pivot with targets at 26053.28 & 26224.88 in extension.
Alternative Price Action: Below 25600.00 looks for further downside to 25159.42 & 24978.71.
Comment: Price above 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 produced7