Market Wrap: Stocks, Bonds, Commodities
The Dow Jones Industrial Average hit fresh record highs after the House passed President Joe Biden’s $1.9 trillion stimulus plan, and as inflation fears ease.
The Dow Jones Industrial Average rose 464.30 points (1.46%) to 32,297.02, the S&P 500 gained 23.37 points (0.60%) to 3,875.44 and the Nasdaq Composite flat to 13,068.83.
Asian stocks extended their rebound from a two-month low on Thursday after a report on U.S. consumer prices calmed concerns about inflation and lifted the Dow Jones industrial average to a record close.
MSCI’s index of Asia-Pacific stocks outside Japan rose 1.86% to 888.60 levels. Australian index flat to 6,713.90. Japanese Nikkei traded 0.60% higher to 29,211.64.
European stocks were advance on Thursday, with the Stoxx Europe 50 Index gained 0.40% to 3,835.25, Germany’s DAX rose 0.05% to 14,544.60 and France’s CAC higher 0.41% to 6,014.14 and U.K.’s FTSE 100 advance 0.15% to 6,736.00.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield lost 0.60% to 1.535.
Crude oil prices rose on Thursday as vaccine rollouts bolstered the economic outlook and U.S. fuel stocks fell sharply, although gains were capped by a surge in crude oil inventories after last month’s Texas storm.
Spot Brent crude oil gained 0.39% to $64.69 per barrel. US West Texas Intermediate crude rose 0.32% to $68.12 a barrel.
The yellow metal traded 0.80% higher to 1737.40 dollars per ounce.
Market Wrap: Forex
The dollar languished near one-week lows on Thursday after benign data on U.S. consumer prices and a decline in Treasury yields led some investors to trim bets on a rapid acceleration in inflation.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lost 0.12% to 91.727.
The Euro US Dollar (EUR/USD) widely traded pair advance 0.15% today. This left the pairing trading around $1.19410.
The Japanese yen fell against the U.S. dollar on Wednesday as stock pushes higher. Today US/JPY rose 0.26% to 108.660 level.
Other commodity-related currency gained against the U.S dollar, AUD/USD higher 0.53% to 0.77750 and NZD/USD gained 0.44% to 0.72270.
EUR/USD Intraday: Support at 1.19090
Our pivot point is at 1.19090
Preferable Price Action: Take long positions above pivot level with targets at 1.19500 & 1.19700 in extension.
Alternative Price Action: Below pivot looks for further downside to 1.18670 & 1.18470.
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: Trend on the upside
Our pivot point is at 1.39140
Preferable Price Action: Buy positions above pivot with targets at 1.39750 & 1.40050 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.38530 & 1.38230.
Comment: Price above at 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: In a consolidation zone
Our pivot point is at 108.560
Preferable Price Action: Buy position above with the target at 108.880 and 109.080 in extension.
Alternative Price Action: The downside breakout of pivot would call for 108.230 and 108.030.
Comment: price above 20MA & 50MA 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: Trend upside
Our pivot point is at 0.77450
Preferable Price Action: Buy Positions above pivot with targets at 0.77850 & 0.78100 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.77040 & 0.76780 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: Trend downside
Our pivot point is at 65.30
Preferable Price Action: Below pivots sell Oil with 64.10 & 63.40 as targets.
Alternative Price Action: Buy crude above pivot with targets at 66.50 and 67.20 in extension.
Comment: Crude below its 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
XAU/USD Intraday: Trend on the upside
Our pivot point is at 1728.10
Preferable Price Action: Further upside to 1744.00 & 1754.20.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1712.10 and 1702.00.
Comment: MACD in positive territory and price above 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: Break resistance levels
Our pivot point is 32,260.00
Preferable Price Action: Take buy positions above pivot with targets at 32,560.00 & 32,730.00.
Alternative Price Action: Below 32,260.00 looks for further downside to 31,970.00 & 31,790.00.
Comment: Price above its 20MA and 55MA and RSI at overbought 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