Market Wrap: Stocks, Bonds, Commodities
Wall Street’s three major indexes tumbled on Tuesday, with the Dow registering its biggest quarterly decline since 1987 and the S&P 500 suffering its deepest quarterly drop since the financial crisis on growing evidence of massive economic damage from the coronavirus pandemic.
The Dow Jones Industrial Average declined 1.84% to 21,918, the S&P 500 fell 1.60% to 2,584.60 and the Nasdaq Composite down 0.96% to 7,700.30.
Asian shares faced another leg lower on Wednesday as the coronavirus sharply slows global growth, leading a gauge of world stocks to post its biggest quarterly decline in more than a decade and oil prices to trade near lows last seen in 2002.
MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 1.54% to 553.20 levels. Australian index was down 4.44%, while Japan’s Nikkei stock index slipped 3.60%
European stocks were slipped on Friday, with the Stoxx Europe 50 Index rose 0.77% to 2786.90, Germany’s DAX up 1.23% to 9,9935.84 and France’s CAC advanced 0.40% to 4,396.12 and U.K.’s FTSE 100 rose 1.95% to 5,671.96.
Benchmark 10-year U.S. Treasury advanced as demand for safe asset grow again, today 10-year bond yield down 10.53% to 0.625.
Gold prices were down on Wednesday morning, extending yesterday’s losses amid speculations that Russia might move from big buyer to possible seller of bullion. Today Gold down 0.60% to $1617.20 per ounce.
Crude oil benchmarks opened the month mixed on Wednesday, following their biggest-ever quarterly and monthly losses, overshadowed by fears of global oversupply as data showed a bigger-than-expected rise in inventories in the United States.
Brent crude oil plunged 3.50% at $26.100 per barrel. while US West Texas Intermediate (WTI) crude slipped 1.70% to $22.12 per barrel.
Market Wrap: Forex
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, flat to 99.130.
The Euro US Dollar (EUR/USD) widely traded pair down by 0.10% today. This left the pairing trading around $1.10230.
Other commodity-related currency broadly higher against U.S dollar, AUD/USD down 0.37% to 0.61100 and NZD/USD fell 0.17% to 0.59425.
The Japanese yen advanced against the U.S. dollar on Wednesday as demand for safe heaven rose. Today US/JPY down 0.25% to 107.315 level.
EUR/USD Intraday: Resistance at 1.10400
Our pivot point is at 1.10400
Preferable Price Action: Take Short positions below pivot level with targets at 1.09514 & 1.09051 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.10921 & 1.11354.
Comment: pair below 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 1.24400
Our pivot point is at 1.24400
Preferable Price Action: Short positions below pivot with targets at 1.23072 & 1.22518 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.25039 & 1.25495.
Comment: The RSI indicator below 50 levels and pair below 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
JPY/USD Intraday: Yen strength continues
Our pivot point is at 107.950
Preferable Price Action: Short position below pivot with the target at 106.882 and 106.381 in extension.
Alternative Price Action: The upside breakout of pivot would call for 108.536 and 108.996.
Comment: Pair below 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: In consolidation zone
Our pivot point is at 0.60550
Preferable Price Action: Short positions below pivot with targets at 0.60107 & 0.59688 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.61161 & 0.61562 as targets.
Comment: Pair below its 20MA & 55MA and RSI below 50 levels mark.
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: Bias remains bearish
Our pivot point is at 20.22
Preferable Price Action: Sell below pivot with targets at 18.95 and 17.98 in extension.
Alternative Price Action: Above pivots buy Oil with 21.11 & 21.98 as targets.
Comment: MACD in the negative zone and pair below its 55MA & 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
XAU/USD Intraday: Take downside breakout
Our pivot point is at 1600.00
Preferable Price Action: Further downside to 1564.92 & 1544.44 level.
Alternative Price Action: If price gives upside breakout of a pivot, then price extends to 1621.50 and 1638.54.
Comment: Pair below its 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 remains a downside
Our pivot point is at 21550.00
Preferable Price Action: Take Short positions below pivot with targets at 20709.44 & 20227.77 in extension.
Alternative Price Action: Above 21550.00 looks for further upside to 22055.13 & 22492.10.
Comment: Index below its 20MA & 55MA and RSi below 50 level mark.
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