Market Wrap: Stocks, Bonds, Commodities
The Dow and the S&P 500 ended higher, soaring to all-time highs on Wednesday, as investors piled into financial and industrial stocks on bets a Democratic sweep in Georgia would lead to more fiscal stimulus and infrastructure spending.
The Dow Jones Industrial Average closed 437.8 points higher (1.44%) to 30,829.4, the S&P 500 gained 21.28 points (0.57%) to 3,748.14 and the Nasdaq Composite dropped 78.17 points (0.61%) to 12,740.79.
Asian stocks perked up on Thursday as investors remained confident that violence in Washington would not disrupt a legitimate transition to a new presidency or derail political support for a U.S. economic recovery.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.24% to 862.90 levels. Australian index jumped 1.59% to 6,712.00. Japanese Nikkei advance rose 1.60% to 27,490.13.
European stocks were advanced on Thursday, with the Stoxx Europe 50 Index flat to 3,610.76, Germany’s DAX gained 0.37% to 13,943.45 and France’s CAC up 0.19% to 5,641.70 and U.K.’s FTSE 100 lost 0.30% to 6,820.85.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield fell 0.46% to 1.037.
Oil prices were steady on Thursday after supporters of President Donald Trump stormed the U.S. Capitol, with investors focusing on the likelihood of tighter supplies after Saudi Arabia unilaterally agreed to cut output.
Spot Brent crude Oil lower 0.10% to $54.26 per barrel. US West Texas Intermediate crude gained 0.45% to $50.86 a barrel.
The yellow metal traded 0.65% higher to 1919.40 dollar per ounce.
Market Wrap: Forex
The dollar languished near its lowest level in nearly three years on Thursday after Democrats won control of the U.S. Senate, clearing the way for a larger fiscal stimulus under President-elect Joe Biden.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose 0.35% to 89.817.
The Euro US Dollar (EUR/USD) widely traded pair down 0.51% today. This left the pairing trading around $1.22640.
The Japanese yen fell against the U.S. dollar on Thursday as stock pushes higher. Today US/JPY rose 0.57% to 103.620 level.
Other commodity related currency declined against U.S dollar, AUD/USD lost 0.74% to 0.77430 and NZD/USD fell 0.54% to 0.72500.
EUR/USD Intraday: Trend upside
Our pivot point is at 1.23030
Preferable Price Action: Take Long positions above pivot level with targets at 1.23400 & 1.23600 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.22680 & 1.22480.
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: Trend downside
Our pivot point is at 1.36070
Preferable Price Action: Sell positions below pivot with targets at 1.35600 & 1.35300 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.36550 & 1.36850.
Comment: Price above 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: Support at 103.130
Our pivot point is at 103.130
Preferable Price Action: Buy position above pivot with the target at 103.500 and 103.700 in extension.
Alternative Price Action: The downside breakout of pivot would call for 102.780 and 102.580.
Comment: price 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
AUD/USD Intraday: Support at 0.77650
Our pivot point is at 0.77650
Preferable Price Action: Buy Positions above pivot with targets at 0.78100 & 0.78300 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.77200 & 0.77000 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 50.80
Preferable Price Action: Above pivots buy Oil with 51.80 & 52.40 as targets.
Alternative Price Action: Sell crude below pivot with targets at 49.80 and 49.20 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: Bias on the upside
Our pivot point is at 1913.50
Preferable Price Action: Further upside to 1932.00 & 1942.00 level.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1896.00 and 1886.00.
Comment: MACD in negative territory 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 30,840.00
Our pivot point is at 30,840.00
Preferable Price Action: Take buy positions above pivot with targets at 31,130.00 & 31,300.00 in extension.
Alternative Price Action: Below 30,840.00 looks for further downside to 30,540.00 & 30,370.00.
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