Market Wrap: Stocks, Bonds, Commodities
Shares on Wall Street ended higher on Tuesday in choppy trading, as investors took advantage of the previous session’s slump to buy them back, ahead of the outcome of the Senate runoff elections in the battleground state of Georgia, which will determine the balance of power in Washington.
The Dow Jones Industrial Average closed up 167.71 points (0.55%) to 30,391.6, the S&P 500 gained 26.21 points (0.71%) to 3,726.86 and the Nasdaq Composite added 120.51 points (0.95%) to 12,818.96.
Asian markets were leaning toward a Democratic win in crucial Senate contests on Wednesday as Treasury yields hit 10-month highs on expectations of more debt-funded spending on COVID-stimulus, infrastructure and renewable energy.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.05% to 866.50 levels. Australian index fell 1.12% to 6,607.10. Japanese Nikkei advance down 0.38% to 27,055.94.
European stocks were advanced on Wednesday, with the Stoxx Europe 50 Index rose 0.76% to 3,573.25, Germany’s DAX gained 0.62% to 13,735.25 and France’s CAC up 0.55% to 5,595.10 and U.K.’s FTSE 100 jumped 1.28% to 6,696.84.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield rose 7.02% to 1.022.
Oil prices rose on Wednesday to their highest since February 2020 after Saudi Arabia agreed to reduce output more than expected in a meeting with allied producers, while industry figures US crude stockpiles were down last week.
Spot Brent crude Oil higher 0.90% to $54.10 per barrel. US West Texas Intermediate crude gained 0.32% to $50.10 a barrel.
The yellow metal traded 0.30% higher to 1957.30 dollar per ounce.
Market Wrap: Forex
The dollar fell against major peers on Tuesday as China set the official yuan exchange rate at the strongest since abandoning its peg in 2005, which helped support demand for other units.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, slipped 0.18% to 89.685.
The Euro US Dollar (EUR/USD) widely traded pair rose 0.20% today. This left the pairing trading around $1.22720.
The Japanese yen fell against the U.S. dollar on Monday as stock pushes higher. Today US/JPY fell 0.20% to 102.890 level.
Other commodity related currency advance against U.S dollar, AUD/USD up 0.54% to 0.77060 and NZD/USD rose 0.46% to 0.72050.
EUR/USD Intraday: Trend upside
Our pivot point is at 1.22950
Preferable Price Action: Take Long positions above pivot level with targets at 1.23380 & 1.23600 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.22500 & 1.22280.
Comment: Pair 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
GBP/USD Intraday: Support at 1.35950
Our pivot point is at 1.35950
Preferable Price Action: Buy positions above pivot with targets at 1.36600 & 1.36900 in extension.
Alternative Price Action: Price below pivot would call for further upside to 1.35300 & 1.35000.
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 produced
USD/JPY Intraday: Trend on the downside
Our pivot point is at 102.900
Preferable Price Action: Sell position below pivot with the target at 102.600 and 102.470 in extension.
Alternative Price Action: The upside breakout of pivot would call for 103.200 and 103.330.
Comment: price below its 20MA & 55MA and MACD in negative 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: Major trend upside
Our pivot point is at 0.77680
Preferable Price Action: Buy Positions above pivot with targets at 0.78200 & 0.78500 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.77120 & 0.76810 as targets.
Comment: Pair 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
CRUDEOIL Intraday: Trend upside
Our pivot point is at 49.50
Preferable Price Action: Above pivots buy Oil with 50.80 & 51.40 as targets.
Alternative Price Action: Sell crude below pivot with targets at 48.20 and 47.40 in extension.
Comment: Crude above 20MA & 55MA and MACD in negative 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: Strong trend on the upside
Our pivot point is at 1940.30
Preferable Price Action: Further upside to 1954.20 & 1962.00 level.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1926.00 and 1918.00.
Comment: MACD in positive territory and price below its 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: Support at 30,290.00
Our pivot point is at 30,290.00
Preferable Price Action: Take buy positions above pivot with targets at 30,670.00 & 30,850.00 in extension.
Alternative Price Action: Below 30,290.00 looks for further downside to 29,890.00 & 29,700.00.
Comment: Price 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 produced7