Market Wrap: Stocks, Bonds, Commodities
The S&P 500 and Dow dropped on July 9 as investors worried about another round of business shutdowns to contain a surge in coronavirus cases and they began to shift their focus to earnings.
The Dow Jones Industrial Average slipped 289.20 points (1.12%) to 25,778.50, the S&P 500 fell 11.50 points (0.36%) to 3,158.90 and the Nasdaq Composite gained 68.25 points (0.66%) to 10,561.30.
Asian shares were set to open mostly lower as record-breaking new coronavirus cases and deaths in several US states stoked concerns that new lockdowns could derail the economic recovery, and investors looked forward to earnings season.
MSCI’s index of Asia-Pacific stocks outside Japan down 1.10% to 699.00 levels. Australian index lower 0.61% to 5,919.20. Japan’s Nikkei lost 1.10% to 22,290.81.
European stocks were higher on Friday, with the Stoxx Europe 50 Index gain 0.29% to 3,270.56, Germany’s DAX rose 0.18% to 12,511.40 and France’s CAC advance 0.23% to 4,932.50 and U.K.’s FTSE 100 up 0.34% to 6,071.95.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield down 4.00% to 0.581.
Oil prices dipped on Friday after steep falls in the previous session and were set for a weekly decline on worries renewed lockdowns following a surge in coronavirus cases in the United States and elsewhere will suppress fuel demand.
Spot Brent crude Oil fell 1.95% to $41.52 per barrel. US West Texas Intermediate crude futures were down 2.25% to $38.73 a barrel.
The yellow metal falls on Thursday and able to close above $1800 level.
Market Wrap: Forex
The dollar and other safe-haven currencies were well bid on Friday after a surge in new coronavirus cases in the United States further undermined the case for a quick economic recovery.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, down 0.05% to 96.648.
The Euro US Dollar (EUR/USD) widely traded pair rose 0.15% today. This left the pairing trading around $1.12940.
The Japanese yen gain against the U.S. dollar on Friday as stock pushes lower. Today US/JPY down 0.42% to 106.750 level.
Other commodity-related currency broadly higher against U.S dollar, AUD/USD gain 0.10% to 0.69590 and NZD/USD rose 0.15% to 0.65740.
EUR/USD Intraday: Trend downside
Our pivot point is at 1.12940
Preferable Price Action: Take Short positions below level with targets at 1.12401 & 1.12151 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.13468 & 1.13726.
Comment: Pair above 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
GBP/USD Intraday: Support at 1.26100
Our pivot point is at 1.26100
Preferable Price Action: Short positions below pivot with targets at 1.25593 & 1.25340 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.2668 & 1.26802.
Comment: Price above 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
USD/JPY Intraday: Bias on the downside
Our pivot point is at 107.110
Preferable Price Action: Short position below pivot with the target at 106.570 and 106.327 in extension.
Alternative Price Action: The upside breakout of pivot would call for 107.641 and 107.888.
Comment: Pair below 20MA & 55MA and MACD in the negative zone.
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: Trend upside
Our pivot point is at 0.69210
Preferable Price Action: Long positions above pivot with targets at 0.69661 & 0.69902 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.68800 & 0.68543 as targets.
Comment: Pair above 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: Resistance at 39.80
Our pivot point is at 39.80
Preferable Price Action: Sell crude below pivot with targets at 38.60 and 38.00 in extension.
Alternative Price Action: Above pivots buy Oil with 40.95 & 41.57 as targets.
Comment: Crude below Its 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
XAU/USD Intraday: Trend downside
Our pivot point is at 1805.15
Preferable Price Action: Further downside to 1794.18 & 1789.18 level.
Alternative Price Action: If price gives upside breakout of a pivot, then price extends to 1815.87 and 1820.97.
Comment: RSI above 50 level mark and price above its 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
Dow Jones Intraday: In consolidation zone
Our pivot point is at 25700.00
Preferable Price Action: Take sell positions below pivot with targets at 25302.73 & 25103.09 in extension.
Alternative Price Action: Above 25700.00 looks for further upside to 26101.28 & 26298.75.
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 produced7