Market Wrap: Stocks, Bonds, Commodities
Wall Street’s main indexes rose to an all-time high on Friday as data showing the slowest U.S. jobs growth in six months raised investors’ expectations for a new fiscal relief bill to help revive the coronavirus-hit economy.
The Dow Jones Industrial Average rose 248.74 points (0.83%) to 30,218.26, the S&P 500 gained 32.40 points (0.88%) to 3,699.12 and the Nasdaq Composite added 87.05 points (0.70%) to 12,464.23.
A gauge of Asian shares hit a record peak on Monday on hopes of a much-needed U.S. stimulus package before year-end just as coronavirus vaccines roll out, while oil prices hovered near their highest since March.
MSCI’s index of Asia-Pacific stocks outside Japan fell 0.05% to 816.00 levels. Australian index advances 0.62% to 6,675.00. Japanese Nikkei advance down 0.76% to 26,547.44.
European stocks were lower on Monday, with the Stoxx Europe 50 Index slipped 0.66% to 3,515.70, Germany’s DAX down 0.55% to 13,224.70 and France’s CAC down 0.82% to 5,563.10 and U.K.’s FTSE 100 flat to 6,547.22.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield down 2.37% to 0.946.
Oil prices fell on Monday as a continued surge in coronavirus globally forced a series of renewed lockdowns, including strict new measures in Southern California.
Spot Brent crude Oil lost 1.28% to $48.63 per barrel. US West Texas Intermediate crude down 1.47% to $45.58 a barrel.
The yellow metal traded 0.12% lower to 1834.20 dollar per ounce.
Market Wrap: Forex
The dollar started the week on the back foot on Monday after soft U.S. jobs data only solidified expectations of a fresh economic package, while the British pound eyed last-ditch trade talks between the United Kingdom and European Union.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose 0.41% to 91.062.
The Euro US Dollar (EUR/USD) widely traded pair fell 0.20% today. This left the pairing trading around $1.20970.
The Japanese yen down against the U.S. dollar on Monday as stock pushes higher. Today US/JPY rose 0.08% to 104.220 level.
Other commodity related currency decline against U.S dollar, AUD/USD down 0.28% to 0.74000 and NZD/USD slipped 0.27% to 0.70260.
EUR/USD Intraday: Bias on the downside
Our pivot point is at 1.21510
Preferable Price Action: Take Short positions below pivot level with targets at 1.21050 & 1.20800 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.21990 & 1.22240.
Comment: Pair 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 produced
GBP/USD Intraday: Resistance at 1.34340
Our pivot point is at 1.34340
Preferable Price Action: Sell positions below pivot with targets at 1.33700 & 1.33450 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.34980 & 1.35230.
Comment: Price below 55MA & 20MA 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 produced
USD/JPY Intraday: Trend on the upside
Our pivot point is at 104.000
Preferable Price Action: Buy position above pivot with the target at 104.300 and 104.500 in extension.
Alternative Price Action: The downside breakout of pivot would call for 103.700 and 103.500.
Comment: price above 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: Resistance at 0.74460
Our pivot point is at 0.74460
Preferable Price Action: Sell Positions below pivot with targets at 0.74080 & 0.73880 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.74850 & 0.75050 as targets.
Comment: Pair below its 55MA & 20MA 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 produced
CRUDEOIL Intraday: Support at 45.90
Our pivot point is at 45.90
Preferable Price Action: Above pivots buy Oil with 46.55 & 47.00 as targets.
Alternative Price Action: Sell crude below pivot with targets at 45.25 and 44.80 in extension.
Comment: Crude at 55MA & 20MA 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 1836.00
Our pivot point is at 1836.00
Preferable Price Action: Further upside to 1850.00 & 1858.00 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1821.90 and 1813.70.
Comment: MACD in positive territory and price above 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: Trend upside
Preferable Price Action: Take buy positions above pivot with targets at 30,250.00 & 30,350.00 in extension.
Alternative Price Action: Below 30,090.00 looks for further downside to 29,930.00 & 29,830.00
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