Market Wrap: Stocks, Bonds, Commodities
U.S. stocks ended down more than 1% on Tuesday after President Donald Trump said he was calling off negotiations with Democratic lawmakers on coronavirus relief legislation until after the election.
The Dow Jones Industrial Average fell 375.88 points (1.34%) to 27,772.76, the S&P 500 lost 47.66 points (1.40%) to 3,360.97 and the Nasdaq Composite dropped 177.88 points (1.57%) to 11,154.60.
Asian stocks were set to open lower on Wednesday, weighed by a weaker Wall Street finish after U.S. President Donald Trump dashed hopes for a fourth stimulus package with a tweet.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.57% to 731.40 levels. Australian index rose 0.35% to 5,962.10. Japanese Nikkei gained 0.52% to 23,433.73.
European stocks were higher on Wednesday, with the Stoxx Europe 50 Index gain 0.10% to 3,235.50, Germany’s DAX rose 0.09% to 12,922.55 and France’s CAC advance 0.16% to 4,903.50 and U.K.’s FTSE 100 up 0.10% to 5,955.30.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield soared 2.10% to 0.755.
Oil prices slipped on Wednesday after U.S. President Donald Trump dashed hopes for a fourth stimulus package to boost the coronavirus-hit economy and on a larger-than-expected build-up in U.S. crude stocks.
Spot Brent crude oil fell 0.70% to $42.36 per barrel. US West Texas Intermediate crude lost 0.96% to $40.27 a barrel.
The yellow metal traded 0.40% lower to 1897.20 dollars per ounce.
Market Wrap: Forex
The dollar held onto gains against most currencies on Wednesday after Republican U.S. President Donald Trump’s abrupt cancelling of talks on economic stimulus with Democrats increased risk aversion.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lower 0.05% to 93.700.
The Euro US Dollar (EUR/USD) widely traded pair higher 0.22% today. This left the pairing trading around $1.17570. GBP/USD soared 0.35% to 1.29200.
The Japanese yen down against the U.S. dollar on Wednesday as stock pushes higher. Today US/JPY rose 0.10% to 105.730 level.
Other commodity related currency higher against U.S dollar, AUD/USD advance 0.51% to 0.71410 and NZD/USD up 0.22% to 0.65990.
EUR/USD Intraday: Support at 1.17280
Our pivot point is at 1.17280
Preferable Price Action: Take Long positions above level with targets at 1.17800 & 1.18050 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.16780 & 1.16520.
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
GBP/USD Intraday: Bias on upside
Our pivot point is at 1.28730
Preferable Price Action: Long positions above pivot with targets at 1.29400 & 1.29700 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.28120 & 1.27820.
Comment: Price above 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 upside
Our pivot point is at 105.600
Preferable Price Action: Long position above pivot with the target at 105.900 and 106.100 in extension.
Alternative Price Action: The downside breakout of pivot would call for 105.290 and 105.070.
Comment: price above 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
AUD/USD Intraday: Bias on the upside
Our pivot point is at 0.71100
Preferable Price Action: Long positions above pivot with targets at 0.71750 & 0.72000 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.70440 & 0.70190 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 on the upside
Our pivot point is at 39.90
Preferable Price Action: Buy crude above pivot with targets at 41.10 and 41.60 in extension.
Alternative Price Action: Below pivots sell Oil with 38.70 & 38.10 as targets.
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: Bias on the upside
Our pivot point is at 1883.20
Preferable Price Action: Further upside to 1907.00 & 1916.20 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1860.30 and 1851.00.
Comment: MACD in negative territory and price below it’s 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 27,790
Our pivot point is at 27,790.00
Preferable Price Action: Take buy positions above pivot with targets at 28,250.00 & 28,500.00 in extension.
Alternative Price Action: Below 27,790.00 looks for further downside to 27,350.00 & 27,100.00.
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