Market Wrap: Stocks, Bonds, Commodities
Wall Street’s main indexes ended higher on Wednesday to snap a three-session losing skid as investors jumped back in to take advantage of the pullback in technology-related stocks, a day after the Nasdaq confirmed correction territory.
The Dow Jones Industrial Average rose 439.58 points (1.60%) to close at 27,940.47, the S&P 500 rose 67.12 points (2.01%) to 3,398.96 and the Nasdaq Composite jumped 293.87 points (2.71%) to 11,141.56.
Asian markets are expected to swing higher on Thursday after US stocks reversed course from a three-day losing streak that led the technology-heavy Nasdaq into correction territory.
MSCI’s index of Asia-Pacific stocks outside Japan gained 0.51% to 714.30 levels. Australian index rose 0.51% to 5,908.50. Japanese Nikkei gained 0.88% to 23,235.47.
European stocks were higher on Thursday, with the Stoxx Europe 50 Index rose 0.17% to 3,330.35, Germany’s DAX gained 0.33% to 13,276.50 and France’s CAC up 0.05% to 5,041.10 and U.K.’s FTSE 100 lost 0.33% to 5,993.20.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield down 1.82% to 0.690.
Oil futures fell in early trade on Thursday, paring overnight gains, on worries about fuel demand after data showed US crude stockpiles rose last week, rather than dropping as expected, and COVID-19 cases continued to rise around the world.
Spot Brent crude oil fell 0.51% to $40.58 per barrel. US West Texas Intermediate crude lost 0.79% to $37.77 a barrel.
The yellow metal traded 0.12% lower to 1944.50 dollars per ounce.
Market Wrap: Forex
The dollar found support on Wednesday as a stock market slide spooked investors into selling riskier currencies, while worries about Brexit pushed the pound down to a new six-week low.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lower 0.15% to 93.120.
The Euro US Dollar (EUR/USD) widely traded pair advance 0.21% today. This left the pairing trading around $1.18270.
The Japanese yen rose against the U.S. dollar on Thursday as stock pushes lower. Today US/JPY slipped 0.11%to 106.060 level.
Other commodity-related currency lower against U.S dollar, AUD/USD lost 0.20% to 0.72670 and NZD/USD fell 0.16% to 0.66700.
EUR/USD Intraday: Support at 1.18030
Our pivot point is at 1.18030
Preferable Price Action: Take Long positions above level with targets at 1.18451 & 1.18703 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.17613 & 1.17349.
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
GBP/USD Intraday: Support at 1.29750
Our pivot point is at 1.29750
Preferable Price Action: Long positions above pivot with targets at 1.30407 & 1.30802 in extension.
Alternative Price Action: Price below pivot would call for further upside to 1.29041 & 1.28652.
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
USD/JPY Intraday: In consolidation zone
Our pivot point is at 105.970
Preferable Price Action: Long position above pivot with the target at 106.285 and 106.483 in extension.
Alternative Price Action: The downside breakout of pivot would call for 105.680 and 105.474.
Comment: price below 55MA and RSI near 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: Resistance at 0.72900
Our pivot point is at 0.72900
Preferable Price Action: Short positions below pivot with targets at 0.72402 & 0.72104 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.73391 & 0.73689 as targets.
Comment: Pair above its 55MA & 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
CRUDEOIL Intraday: Bias on the upside
Our pivot point is at 37.70
Preferable Price Action: Buy crude above pivot with targets at 38.64 and 39.10 in extension.
Alternative Price Action: Below pivots sell Oil with 36.80 & 36.37 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: Trend upside
Our pivot point is at 1939.40
Preferable Price Action: Further upside to 1953.02 & 1960.12 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1925.81 and 1918.43.
Comment: MACD in positive territory and price above 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
Dow Jones Intraday: Trend on upside
Our pivot point is at 27800.00
Preferable Price Action: Take buy positions above pivot with targets at 28140.00 & 28380.00 in extension.
Alternative Price Action: Below 27800.00 looks for further downside to 27460.00 & 27200.00.
Comment: Price above its 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 produced7