Market Wrap: Stocks, Bonds, Commodities
US major stock indices climbed on Friday after a better than expected employment data from government agency give clearest indication that the US economy is headed for a quicker-than-anticipated recovery. The Nasdaq composite index breached its all-time closing high and give new high close.
American non-farm payroll rose by 2.5 million, against expectations of a five million drop. The unemployment rate also down to 13.3% in May from April’s 14.7%.
The Dow Jones Industrial Average climbed 830.20 points (3.17%) to 27,111.15, the S&P 500 advanced 81.60 points (2.59%) to 3,194 and the Nasdaq Composite higher 197.95 points (2.00%) to 9,814.
Asian major stock indices gained on Monday after a surprise recovery in US employment gave further confidence of a quick economic recovery after many weeks of lockdowns aimed at controlling the coronavirus pandemic.
MSCI’s index of Asia-Pacific stocks outside Japan surged 0.26% to 648.00 levels. Australian equity market close today. Japan’s Nikkei rose 1.25% to 23,150.00.
European stocks were higher on Wednesday, with the Stoxx Europe 50 Index rose 3.76% to 3,384.29, Germany’s DAX gained 3.36% to 12,847.68 and France’s CAC climbed 3.71% to 5,197.79 and U.K.’s FTSE 100 advanced 2.25% to 6,484.30.
Benchmark 10-year U.S. Treasury rose as demand for safe asset grow again, today 10-year bond yield rose 0.30% to 0.907.
Oil surged on Monday after major producers countries agreed to extend a deal on record output cuts to the end of July and as China’s crude imports hit an all-time high in month of May.
Spot Brent crude oil rose 1.28% to $42.84 per barrel. US West Texas Intermediate crude higher 0.86% to $39.87 a barrel.
Gold rose 0.74% on Monday morning to $1691 per ounce.
Market Wrap: Forex
The US dollar index was rose on Monday morning, with investors retreating from the safe-haven asset after the U.S. released a better-than-expected employment report on Friday.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, higher 0.10% to 96.955.
The Euro US Dollar (EUR/USD) widely traded pair almost flat today. This left the pairing trading around $1.12820. The pound traded 0.25% higher to 1.26930.
The Japanese yen rose against the U.S. dollar on Monday as demand for safe currency rose. Today US/JPY down 0.10% to 109.500.
Other commodity-related currency broadly edged higher against U.S dollar, AUD/USD rose 0.10% to 0.69730 and NZD/USD climbed 0.12% to 0.65120.
EUR/USD Intraday: Resistance at 1.13200
Our pivot point is at 1.13200
Preferable Price Action: Take Short positions below pivot level with targets at 1.2600 & 1.2300 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.13787 & 1.14084.
Comment: Trend may reverse from here.
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: May trend reverse
Our pivot point is at 1.27150
Preferable Price Action: Short positions below pivot with targets at 1.26650 & 1.26353 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.27637 & 1.27911.
Comment: Price below 20MA and RSI at 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
JPY/USD Intraday: Support at 109.300
Our pivot point is at 109.300
Preferable Price Action: Long position above pivot with the target at 109.674 and 109.867 in extension.
Alternative Price Action: The downside breakout of pivot would call for 108.931 and 108.718.
Comment: Pair above 55MA and RSI at 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
AUD/USD Intraday: Support at 0.69500
Our pivot point is at 0.69500
Preferable Price Action: Long positions above pivot with targets at 0.69957 & 0.70152 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.69066 & 0.68859 as targets.
Comment: MACD in the positive zone 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 rise continuously
Our pivot point is at 39.40
Preferable Price Action: Buy crude above pivot with targets at 40.70 and 41.30 in extension.
Alternative Price Action: Below pivots sell Oil with 38.07 & 37.43 as targets.
Comment: MACD in the positive zone and price above 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
XAU/USD Intraday: Bias on the upside
Our pivot point is at 1686.00
Preferable Price Action: Further upside to 1700.08 & 1707.09 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1671.99 and 1665.14.
Comment: RSI above 50 level mark and price below 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: Trend on the upside
Our pivot point is at 26900.00
Preferable Price Action: Take buy positions above pivot with targets at 27290.48 & 27491.05 in extension.
Alternative Price Action: Below 26900.00 looks for further downside to 26517.24 & 26302.13.
Comment: Price above 20MA and 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 produced7