Market Wrap: Stocks, Bonds, Commodities
The Nasdaq ended sharply lower on Wednesday after investors sold high-flying technology shares and pivoted to sectors viewed as more likely to benefit from an economic recovery on the back of fiscal stimulus and vaccination programs.
The Nasdaq fell Wednesday, as concerns overstretched valuations in big tech were exacerbated by a renewed climb in U.S. interest rates even as data pointed to a wobble in the labour market.
The Dow Jones Industrial Average fell 0.39% to end at 31,270.10 points, while the S&P 500 lost 1.31% to 3,819.73. The Nasdaq Composite dropped 2.70% to 12,997.75.
The Japanese yen hit a seven-month low on the dollar on Thursday as hopes that vaccine distribution and more government stimulus will drive the U.S. economy into a solid rebound lifted the greenback and benchmark Treasury yields.
MSCI’s index of Asia-Pacific stocks outside Japan slumped 1.98% to 895.72 levels. Australian index down 0.84% to 6,760.70. Japanese Nikkei traded 2.10% lower to 28,930.10.
European stocks were slipped on Thursday, with the Stoxx Europe 50 Index slipped 0.40% to 3,698.95, Germany’s DAX fell 0.50% to 14,011.50 and France’s CAC lower 0.23% to 5,814.60 and U.K.’s FTSE 100 lost 0.59% to 6,636.26.
Benchmark 10-year U.S. Treasury advance as demand for risky asset grow again, today 10-year bond yield fell 0.50% to 1.409.
Oil prices rose more than 2% on Wednesday, boosted by a huge drop in U.S. fuel inventories and expectations that OPEC+ producers might decide against increasing output when they meet this week.
Spot Brent crude Oil up 0.65% to $61.67 per barrel. US West Texas Intermediate crude gained 0.70% to $64.50 a barrel.
The yellow metal traded flat to 1732.15 dollars per ounce.
Market Wrap: Forex
The dollar gained on Wednesday as investors priced for strong U.S. growth relative to other regions, while the safe-haven Japanese yen weakened to a seven-month low.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, gained 0.15% to 91.082.
The Euro US Dollar (EUR/USD) widely traded pair slipped 0.11% today. This left the pairing trading around $1.20480.
The Japanese yen fell against the U.S. dollar on Thursday as stock pushes lower. Today US/JPY advanced 0.21% to 102.220 level.
Other commodity-related currency advance against the U.S dollar, AUD/USD higher 0.37% to 0.78030 and NZD/USD rose 0.25% to 0.72640.
EUR/USD Intraday: Trend upside
Our pivot point is at 1.20400
Preferable Price Action: Take Long positions above pivot level with targets at 1.20770 & 1.20970 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.20030 & 1.19830.
Comment: Pair above its 20MA 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
GBP/USD Intraday: Support at 1.39370
Our pivot point is at 1.39370
Preferable Price Action: Buy positions above pivot with targets at 1.39800 & 1.40100 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.38930 & 1.38630.
Comment: Price above its 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
USD/JPY Intraday: Major trend upside
Our pivot point is at 107.020
Preferable Price Action: Buy position above with the target at 107.280 and 107.460 in extension.
Alternative Price Action: The downside breakout of pivot would call for 106.760 and 106.580.
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
AUD/USD Intraday: Support at 0.77760
Our pivot point is at 0.77760
Preferable Price Action: Buy Positions above pivot with targets at 0.78250 & 0.78550 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.777250 & 0.76950 as targets.
Comment: Pair above its 20MA & 55MA an 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: Support at 61.15
Our pivot point is at 61.15
Preferable Price Action: Below pivots sell Oil with 61.90 & 62.40 as targets.
Alternative Price Action: Buy crude above pivot with targets at 60.40 and 59.90 in extension.
Comment: Crude above its 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
XAU/USD Intraday: Support at 1708.00
Our pivot point is at 1708.00
Preferable Price Action: Further upside to 1725.80 & 1735.00.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1690.00 and 1680.00.
Comment: MACD in positive territory and price above 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: Resistance at 31,350.00
Our pivot point is 31,350.00
Preferable Price Action: Take sell positions below pivot with targets at 31,050.00 & 30,880.00.
Alternative Price Action: Above 31,350.00 looks for further upside to 31,650.00 & 31,820.00.
Comment: Price below its 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 produced7