Market Wrap: Stocks, Bonds, Commodities
The S&P 500 ended up slightly and the Nasdaq fell on Monday as investors extended a rotation into value stocks from heavyweight tech-related names while awaiting news on progress in a US fiscal support bill.
The Dow Jones Industrial Average rose 359.4 points (1.31%) to 27,792.88, the S&P 500 gained 9.33 points (0.28%) to 3,360.61 and the Nasdaq Composite dropped 42.63 points (0.39%) to 10,968.36.
Asian stocks were set for a cautious start on Tuesday, following a mixed Wall Street session and as investors eyed stalled US stimulus efforts and worsening strains between Washington and Beijing over Hong Kong.
MSCI’s index of Asia-Pacific stocks outside Japan gain 0.43% to 711.50 levels. Australian index rose 0.47% to 6,138.70. Japanese Nikkei gained 1.88% to 22,750.24.
European stocks were higher on Monday, with the Stoxx Europe 50 Index rose 0.88% to 3,287.65, Germany’s DAX gained 0.86% to 12,801.70 and France’s CAC up 0.81% to 4,949.75 and U.K.’s FTSE 100 rose 0.80% to 6,097.85.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield gain 1.13% to 0.581.
Crude oil gained more ground on Tuesday, with prices underpinned by expectations of U.S. stimulus and a rebound in Asian demand as economies reopen.
Spot Brent crude Oil gain 0.20% to $45.05 per barrel. US West Texas Intermediate crude futures were rose 0.43% to $42.12 a barrel.
The yellow metal plunged on Tuesday, traded 1.40% lower to $2000 per ounce.
Market Wrap: Forex
The dollar held overnight gains on Tuesday following seven weeks of an almost relentless fall as investors clung to hopes of a bi-partisan stimulus deal in Washington and U.S. bond yields rebounded from multi-month lows.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, higher 0.05% to 93.627.
The Euro US Dollar (EUR/USD) widely traded pair higher by 0.05% today. This left the pairing trading around $1.17360.
The Japanese yen fell against the U.S. dollar on Monday as stock pushes higher. Today US/JPY rose 0.25% to 106.220 level.
Other commodity-related currency broadly higher against U.S dollar, AUD/USD up 0.22% to 0.71640 and NZD/USD higher 0.27% to 0.66070.
EUR/USD Intraday: Minor trend change to down
Our pivot point is at 1.17600
Preferable Price Action: Take Short positions below level with targets at 1.17069 & 1.16742 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.18122 & 1.18440.
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 1.30960
Our pivot point is at 1.30960
Preferable Price Action: Short positions below pivot with targets at 1.30305 & 1.30008 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.31572 & 1.31867.
Comment: Price below 55MA & 20MA 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
USD/JPY Intraday: Break resistance level
Our pivot point is at 106.000
Preferable Price Action: Long position above pivot with the target at 106.401 and 106.606 in extension.
Alternative Price Action: The downside breakout of pivot would call for 105.617 and 105.408.
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 produced
AUD/USD Intraday: support at 0.71440 level
Our pivot point is at 0.71440
Preferable Price Action: Long positions above pivot with targets at 0.71853 & 0.72083 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.71045 & 0.70816 as targets.
Comment: Pair at its 22MA & 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
CRUDEOIL Intraday: Support at 42.00
Our pivot point is at 42.00
Preferable Price Action: Buy crude above pivot with targets at 42.80 and 43.20 in extension.
Alternative Price Action: Below pivots sell Oil with 41.20 & 40.78 as targets.
Comment: Crude above Its 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
XAU/USD Intraday: Brak Support level
Our pivot point is at 2012.30
Preferable Price Action: Further downside to 1995.63 & 1985.88 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 2028.77 and 2038.26.
Comment: RSI at oversold levels and price below 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: Strong trend upside
Our pivot point is at 27800.00
Preferable Price Action: Take buy positions above pivot with targets at 28102.17 & 28250.57 in extension.
Alternative Price Action: Below 27800.00 looks for further downside to 27483.46 & 247320.14.
Comment: Price above 20MA & 55MA and RSI at oversold 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