Market Wrap: Stocks, Bonds, Commodities
The Dow and S&P 500 fell on Tuesday, with financials and other groups closely tied to economic growth leading declines, while the Nasdaq edged higher to another closing record.
The Dow Jones Industrial Average fell 208.98 points (0.60%) to 34,577.37, the S&P 500 lost 8.8 points (0.20%) to 4,343.54 and the Nasdaq Composite added 24.32 points (0.17%) to 14,663.64.
Asian share markets tumbled on Wednesday as a bout of risk aversion boosted bonds and the dollar, while investors braced for minutes from the Federal Reserve’s last meeting which should underline a hawkish turn in U.S. monetary policy.
MSCI’s index of Asia-Pacific stocks outside Japan fell 0.43% to 869.21 levels. Australian index advance 0.90% to 7,236.30. Japanese Nikkei traded lower 0.96% to 28,366.95.
European stocks were higher on Wednesday, with the Stoxx Europe 50 Index up 0.59% to 4,076.56, Germany’s DAX gained 0.86% to 15,641.60, and France’s CAC rose 0.37% to 6,531.41, and U.K.’s FTSE 100 advance 0.50% to 7,136.35.
Benchmark 10-year U.S. Treasury rose as demand for safe risk grows again, today 10-year bond yields slumped 2.82% to 1.331.
Oil climbed toward $74 a barrel as investors tracked the high-stakes impasse between Saudi Arabia and the United Arab Emirates that’s stymied efforts to raise OPEC+ production amid a resurgence in demand.
Spot Brent crude oil rose 0.78% to $75.01 per barrel. US West Texas Intermediate crude advance 0.71% to $73.87 a barrel.
The yellow metal higher 0.72% to 1806.70 dollars per ounce.
Market Wrap: Forex
The dollar gained against a basket of peer currencies on Tuesday following the U.S. Independence Day long weekend as traders positioned themselves ahead of the release of the minutes from the U.S. Federal Reserve’s pivotal June meeting.
Today, the U.S. dollar index measures the greenback against a trade-weighted basket of six major currencies, down 0.05% to 92.507.
The Euro US Dollar (EUR/USD) is a widely traded pair flat today. This left the pairing trading around $1.18230.
The Japanese yen lost against the U.S. dollar on Wednesday as the stock pushes higher. Today US/JPY gained 0.10% to 110.670 level.
Another commodity-related currency higher against the U.S dollar, AUD/USD up 0.19% to 0.75090, and NZD/USD rose 0.33% to 0.70310.
EUR/USD Intraday: Break Support level
Our pivot point is at 1.18440
Preferable Price Action: Take short positions below pivot level with targets at 1.18050 & 1.17840 in extension.
Alternative Price Action: Above pivot looks for a further upside to 1.18850 & 1.19040.
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
GBP/USD Intraday: Trend on the downside
Our pivot point is at 1.38240
Preferable Price Action: Buy positions above pivot with targets at 1.38620 & 1.38840 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.37830 & 1.37630.
Comment: Price 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
USD/JPY Intraday: Trend may reverse to upside
Our pivot point is at 110.540
Preferable Price Action: Buy position above pivot with the target at 110.920 and 111.130 in extension.
Alternative Price Action: The downside breakout of the pivot would call for 110.200 and 110.000.
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: Break support level
Our pivot point is at 0.75410
Preferable Price Action: Sell Positions below pivot with targets at 0.74800 & 0.74450 in extension.
Alternative Price Action: Above pivot looks for a further upside with 0.76020 & 0.7635 as targets.
Comment: Pair above its 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: Resistance at 74.26 level
Our pivot point is at 74.26
Preferable Price Action: Below pivots sell Oil with 72.52 & 71.56 as targets.
Alternative Price Action: Buy crude above pivot with targets at 75.80 and 76.75 in extension.
Comment: Crude is above its 20MA & 55MA and MACD in the 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: Strong Trend on the upside
Our pivot point is 1797.20
Preferable Price Action: Further upside to 1815.50 & 1824.60.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1781.10 and 1771.20.
Comment: MACD in positive territory and price above its 20MA & 50MA.
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 34,507.00
Our pivot point is 34,507.00
Preferable Price Action: Take Buy positions above pivot with targets at 34,712.00 & 34,821.00.
Alternative Price Action: Below 34,507.00 looks for further downside to 34,316.00 & 34,212.00.
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 produced