Market Wrap: Stocks, Bonds, Commodities
The Nasdaq closed up 2% on Wednesday as investors switched back to technology stocks and away from economically sensitive sectors as they weighed COVID-19 vaccine progress against a virus surge and likely timing for an economic rebound.
The Dow Jones Industrial Average fell 23.29 points (0.08%) to 29,397.63, the S&P 500 gained 27.13 points (0.77%) to 3,572.66 and the Nasdaq Composite added 232.58 points (2.01%) to 11,786.43.
Asian major stock indices were set to continue their gains on Thursday, buoyed again by continued global stimulus efforts and hopes of a coronavirus vaccine.
MSCI’s index of Asia-Pacific stocks outside Japan gained 0.11% to 775.85 levels. Australian index down 0.49% to 6,418.20. Japanese market soared 0.68% to 25,520.88.
European stocks were lower on Thursday, with the Stoxx Europe 50 Index fell 0.42% to 3,452.82, Germany’s DAX down 0.57% to 13,139.90 and France’s CAC lost 0.66% to 5,410.63 and U.K.’s FTSE 100 slipped 0.58% to 6,344.67.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield fell 4.72% to 0.942.
Global oil benchmark Brent rose on Wednesday, briefly touching a more than two-month high above $45 a barrel on hopes of a COVID-19 vaccine that could boost demand and later pulling back as concerns about rising cases overtook bullish news.
Spot Brent crude Oil slipped 0.41% to $43.62 per barrel. US West Texas Intermediate crude down 0.43% to $41.29 a barrel.
The yellow metal traded 0.46% higher to 1871.80 dollar per ounce.
Market Wrap: Forex
The dollar held broad gains on Thursday as investors adjusted some of their bullish expectations about a COVID-19 vaccine, tempering a recent rally in risk assets but keeping enough confidence to support the greenback against other safe-havens.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell 0.21% to 92.830.
The euro slipped against the dollar on Wednesday as European Central Bank policymakers continued to tout further easing on the horizon, though downplayed the prospect of further interest rate cuts.
The Euro US Dollar (EUR/USD) widely traded pair rose 0.17% today. This left the pairing trading around $1.17970.
The Japanese yen rose against the U.S. dollar on Thursday as stock pushes lower. Today US/JPY down 0.05% to 105.360 level.
Other commodity related currency lower against U.S dollar, AUD/USD lost 0.32% to 0.72560 and NZD/USD slipped 0.28% to 0.68620.
EUR/USD Intraday: Bias on the upside
Our pivot point is at 1.17670
Preferable Price Action: Take Long positions above pivot level with targets at 1.18150 & 1.18450 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.17200 & 1.16900.
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
GBP/USD Intraday: Trend downside
Our pivot point is at 1.32120
Preferable Price Action: Short positions below pivot with targets at 1.31600 & 1.31330 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.32640& 1.32910.
Comment: Price below 55MA & 20MA 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
USD/JPY Intraday: Trend upside
Our pivot point is at 105.140
Preferable Price Action: Long position above pivot with the target at 105.550 and 105.800 in extension.
Alternative Price Action: The downside breakout of pivot would call for 104.700 and 104.440.
Comment: price above its 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
AUD/USD Intraday: Break support levels
Our pivot point is at 0.72770
Preferable Price Action: Short positions below pivot with targets at 0.72320 & 0.72020 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.73220 & 0.73520 as targets.
Comment: Pair below its 55MA & 20MA 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
CRUDEOIL Intraday: Support at 40.95
Our pivot point is at 40.95
Preferable Price Action: Buy crude above pivot with targets at 42.00 and 42.70 in extension.
Alternative Price Action: Below pivots sell Oil with 39.90 & 39.20 as targets.
Comment: Crudebelow 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
XAU/USD Intraday: Bias on the downside
Our pivot point is at 1876.40
Preferable Price Action: Further downside to 1860.20 & 1847.50 level.
Alternative Price Action: If price gives upside breakout of a pivot, then price extends to 1892.50 and 1904.30.
Comment: MACD in negative territory 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: Bias on the downside
Our pivot point is at 29420.00
Preferable Price Action: Take sell positions below pivot with targets at 29,000.00 & 28,800.00 in extension.
Alternative Price Action: Below 29,420.00 looks for further downside to 29,840.00 & 30,040.00.
Comment: Price above its 55MA & 20MA 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