Market Wrap: Stocks, Bonds, Commodities
Global stock markets rose to a record high on Wednesday as bond yields eased after data showed U.S. inflation was not rising wildly as the economy reopens.
The Dow Jones Industrial Average fell 68.13 points (0.20%) to 33,745.40, the S&P 500 rose 12 points (0.29%) to 4,141.17 and the Nasdaq Composite jumped 146.10 points (1.05%) to 13,996.10.
Asia Pacific stocks were mostly up Wednesday morning, with investors brushing off a higher-than-expected rise in U.S. inflation to focus on the global economic recovery from COVID-19.
MSCI’s index of Asia-Pacific stocks outside Japan gained 0.87% to 877.12 levels. Australian index gained 0.66% to 7,023.10. Japanese Nikkei traded 0.44% lower to 29,620.99.
European stocks were advance on Wednesday, with the Stoxx Europe 50 Index gained 0.19% to 3,974.50, Germany’s DAX flat to 15,237.20 and France’s CAC higher 0.43% to 6,211.11 and U.K.’s FTSE 100 advance 0.21% to 6,903.73.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield advance 0.68% to 1.634.
Crude climbed on Wednesday after industry data showed U.S. oil inventories declined more than expected and OPEC raised its outlook for oil demand, but gains were capped by worries about the coronavirus and by rising supplies of the energy resource.
Spot Brent crude Oil up 1.30% to $64.50 per barrel. US West Texas Intermediate crude advance 1.33% to $60.99 a barrel.
The yellow metal traded fell 0.05% to 1746.66 dollars per ounce.
Market Wrap: Forex
The dollar fell to multi-week lows against the euro and the yen on Wednesday, after an uptick in a U.S. consumer price gauge did not spark wider fears about accelerating inflation and the Federal Reserve’s tapering, pushing down U.S. bond yields.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lost 0.13% to 91.720.
The Euro US Dollar (EUR/USD) widely traded pair lost 0.10% today. This left the pairing trading around $1.18950.
The Japanese yen rose against the U.S. dollar on Monday as stock pushes higher. Today US/JPY flat to 109.370 level.
Another commodity-related currency mixed against the U.S dollar, AUD/USD lost 0.12% to 0.76110 and NZD/USD flat to 0.70250.
EUR/USD Intraday: Trend on the upside
Our pivot point is at 1.19520
Preferable Price Action: Take long positions above pivot level with targets at 1.19800 & 1.19950 in extension.
Alternative Price Action: Below pivot looks for further downside to 1.19240 & 1.19090.
Comment: Pair below its 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: Support at 1.37650
Our pivot point is at 1.37650
Preferable Price Action: Buy positions above pivot with targets at 1.38030 & 1.38250 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.37250 & 1.37030.
Comment: Price above its 20MA & 55MA and RSI at 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: Trend on the downside
Our pivot point is at 109.080
Preferable Price Action: Sell position below with the target at 108.700 and 108.500 in extension.
Alternative Price Action: The upside breakout of pivot would call for 109.450 and 109.650.
Comment: price below 20MA & 50MA 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
AUD/USD Intraday: Break resistance area
Our pivot point is at 0.76630
Preferable Price Action: Buy Positions above pivot with targets at 0.76900 & 0.77090 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.76350 & 0.76160 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: Break resistance level
Our pivot point is at 60.60
Preferable Price Action: Above pivots buy Oil with 61.40 & 61.90 as targets.
Alternative Price Action: Sell crude below pivot with targets at 59.80 and 59.30 in extension.
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: Support at 1741.50
Our pivot point is at 1741.50
Preferable Price Action: Further upside to 1751.00 & 1756.00.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1732.00 and 1727.00.
Comment: MACD in positive territory and price above 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: Resistance at 33,720.00
Our pivot point is 33,720.00
Preferable Price Action: Take Sell positions below pivot with targets at 33,630.00 & 33,550.00.
Alternative Price Action: Above 33,810.00 looks for further upside to 33,810.00 & 33,890.00.
Comment: Price 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 produced7