Market Wrap: Stocks, Bonds, Commodities
The Dow Jones Industrial Average hit a record high on Monday morning on hopes that interest rates would remain lower for longer, while the S&P 500 was subdued as a slide in technology shares offset a surge in commodity-linked energy and material stocks.
The Dow Jones Industrial Average was down 34.94 points (0.10%) at 34,742.82, while the S&P 500 was fell 44 points (1.04%) at 4,232.21 and the Nasdaq Composite has slumped 350.38 points (2.55%) at 13,401.86.
Asian tech stocks tumbled on Tuesday and a regional equity gauge suffered its biggest slide in nearly two months after a selloff on Wall Street, as traders braced for U.S. inflation data amid worries growing price pressures might bring forward rate rises.
MSCI’s index of Asia-Pacific stocks outside Japan decline 1.79% to 860.59 levels. Australian index slipped 1.06% to 7,097.00. Japanese Nikkei plunged 3.08% to 28,608.60.
European stocks were lower on Tuesday, with the Stoxx Europe 50 Index declined 1.64% to 3,957.60, Germany’s DAX fell 1.73% to 15,133.90, and France’s CAC lower 1.63% to 6,280.40, and U.K.’s FTSE 100 down 2.02% to 6,979.30.
Benchmark 10-year U.S. Treasury rose as demand for risky assets grows again, today 10-year bond yields jumped 0.90% to 1.616.
Oil prices settled higher on Monday after a major U.S. fuel pipeline said it could largely restart within the week after a cyberattack forced its shutdown.
Spot Brent crude oil declined 1.04% to $67.60 per barrel. US West Texas Intermediate crude lower 1.12% to $64.19 a barrel.
The yellow metal traded lower 0.10% to 1834.90 dollars per ounce.
Market Wrap: Forex
The dollar nursed losses against the currencies of major commodity exporters which enjoyed support from expectations for further gains in the price of oil, copper, steel, and other metals.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, gained 0.05% to 90.230.
The Euro US Dollar (EUR/USD) is a widely traded pair that rose 0.14% today. This left the pairing trading around $1.21440.
The Japanese yen fell against the U.S. dollar on Tuesday as the stock pushes lower. Today US/JPY rose 0.16% to 108.950 level.
Another commodity-related currency lower against the U.S dollar, AUD/USD flat to 0.78280 and NZD/USD down 0.21% to 0.72570.
EUR/USD Intraday: Support at 1.21260
Our pivot point is at 1.21260
Preferable Price Action: Take long positions above pivot level with targets at 1.21740 & 1.21940 in extension.
Alternative Price Action: Below pivot looks for further downside to 1.20780 & 1.20580.
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 1.40890
Preferable Price Action: Buy positions above pivot with targets at 1.41450 & 1.41700 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.40310 & 1.40060.
Comment: Price above its 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
USD/JPY Intraday: In consolidation area
Our pivot point is at 109.760
Preferable Price Action: Buy position above with the target at 109.000 and 109.150 in extension.
Alternative Price Action: The downside breakout of pivot would call for 108.520 and 108.370.
Comment: price avove 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: Trend on the upside
Our pivot point is at 0.78100
Preferable Price Action: Buy Positions above pivot with targets at 0.78640 & 0.78850 in extension.
Alternative Price Action: Below pivot looks for the further downside with 0.77550 & 0.77340 as targets.
Comment: Pair above its 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: In the consolidation zone
Our pivot point is at 64.90
Preferable Price Action: Below pivots sell Oil with 64.00 & 63.50 as targets.
Alternative Price Action: Buy crude above pivot with targets at 65.80 and 66.30 in extension.
Comment: Crude below 20MA & 55MA and MACD in the 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: Support at 1829.80
Our pivot point is at 1829.80
Preferable Price Action: Further upside to 1841.60 & 1847.00
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1818.00 and 1812.40.
Comment: MACD in positive territory and price above its 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 downside
Our pivot point is 34,720.00
Preferable Price Action: Take sell positions below pivot with targets at 34,470.00 & 34,370.00.
Alternative Price Action: Above 34,720.00 looks for further upside to 34,950.00 & 35,050.00.
Comment: Price 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 produced7