Market Wrap: Stocks, Bonds, Commodities
The Dow and S&P 500 hit record closing highs on Friday while registering gains for the week, and the Nasdaq recovered after U.S. jobs data eased concerns over prospects for rising rates.
The Dow rose 229.23 points (0.66%) to 34,777.76, the S&P 500 gained 30.98 points (0.74%) to 4,232.6 and the Nasdaq Composite added 119.40 points (0.88%) to 13,752.24.
Stocks rose on Monday amid speculation that interest rates will remain low for an extended period due to the receding risk of a rapid acceleration in inflation, while oil prices jumped after a cyber attack on a U.S. pipeline operator unnerved markets.
MSCI’s index of Asia-Pacific stocks outside Japan advance 0.34% to 880.85 levels. Australian index gained 1.30% to 7,172.80. Japanese Nikkei rose 0.55% to 29,518.34.
European stocks were mixed Monday, with the Stoxx Europe 50 Index declined 0.31% to 4,021.61, Germany’s DAX fell 0.13% to 15,379.00, and France’s CAC lower 0.19% to 6,373.15, and U.K.’s FTSE 100 gained 0.05% to 7,132.32.
Benchmark 10-year U.S. Treasury rose as demand for risky assets grows again, today 10-year bond yields jumped 0.67% to 1.590.
Crude prices climbed more than 1% on Monday after a major cyberattack that forced the shutdown of critical fuel supply pipelines in the United States, highlighting the fragility of oil infrastructure.
Spot Brent crude oil gained 0.50% to $68.63 per barrel. US West Texas Intermediate crude higher 0.45% to $65.18 a barrel.
The yellow metal traded higher 0.31% to 1836.20 dollars per ounce.
Market Wrap: Forex
The dollar languished near a more than two-month low versus major peers on Monday as investors continued to assess the implications for monetary policy of a disappointing U.S. employment report, ahead of inflation data this week.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell 0.06% to 90.160.
The Euro US Dollar (EUR/USD) is a widely traded pair that flat today. This left the pairing trading around $1.21610.
The Japanese yen fell against the U.S. dollar on Monday as the stock pushes lower. Today US/JPY rose 0.13% to 108.730 level.
Another commodity-related currency higher against the U.S dollar, AUD/USD advanced 0.39% to 0.78720 and NZD/USD up 0.25% to 0.72890.
EUR/USD Intraday: Support at 1.21450
Our pivot point is at 1.21450
Preferable Price Action: Take long positions above pivot level with targets at 1.21950 & 1.22200 in extension.
Alternative Price Action: Below pivot looks for further downside to 1.20950 & 1.20700.
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
GBP/USD Intraday: Strong trend upside
Our pivot point is at 1.40530
Preferable Price Action: Buy positions above pivot with targets at 1.41130 & 1.41430 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.39930 & 1.39600.
Comment: Price 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
USD/JPY Intraday: Resistance at 109.080
Our pivot point is at 109.080
Preferable Price Action: Sell position below with the target at 108.600 and 108.400 in extension.
Alternative Price Action: The upside breakout of pivot would call for 109.550 and 109.750.
Comment: price below 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
AUD/USD Intraday: Support at 0.78440
Our pivot point is at 0.78440
Preferable Price Action: Buy Positions above pivot with targets at 0.78940 & 0.79200 in extension.
Alternative Price Action: Below pivot looks for the further downside with 0.77940 & 0.77660 as targets.
Comment: Pair 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
CRUDEOIL Intraday: In the consolidation zone
Our pivot point is at 64.70
Preferable Price Action: Above pivots buy Oil with 65.70 & 66.20 as targets.
Alternative Price Action: Sell crude below pivot with targets at 63.70 and 63.20 in extension.
Comment: Crude above 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: Trend upside
Our pivot point is at 1826.80
Preferable Price Action: Further upside to 1842.00 & 1850.00
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1810.00 and 1802.00.
Comment: MACD in positive territory 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: Continuously trend upside
Our pivot point is 34,750.00
Preferable Price Action: Take buy positions above pivot with targets at 34,930.00 & 35,030.00.
Alternative Price Action: Below 34,750.00 looks for further downside to 34,580.00 & 34,480.00
Comment: Price 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 produced7