Market Wrap: Stocks, Bonds, Commodities
Bond yields jumped and global share prices slipped after posting new highs on Tuesday as the biggest hike in U.S. inflation in 13 years rattled investors who fear rising interest rates could end a stock market rally that has doubled prices from 2020 lows.
The Dow Jones Industrial Average fell 0.31% to 34,888.79, the S&P 500 lost 0.35% to 4,369.21 and the Nasdaq Composite dropped 0.38% to 14,677.65.
Shares in Asia-Pacific mostly slipped in Wednesday morning trade following a hotter-than-expected U.S. inflation report for June overnight.
MSCI’s index of Asia-Pacific stocks outside Japan decline 0.37% to 864.72 levels. Australian index gained 0.31% to 7,354.70. Japanese Nikkei traded lower 0.38% to 28,608.49.
European stocks were lower on Wednesday, with the Stoxx Europe 50 Index lost 0.14% to 4,088.66, Germany’s DAX fell 0.12% to 15,771.55, and France’s CAC down 0.18% to 6,546.65, and U.K.’s FTSE 100 slipped 0.51% to 7,088.15.
Benchmark 10-year U.S. Treasury fell as demand for safe risk grows again, today 10-year bond yields plunged 1.32% to 1.396.
Oil prices climbed on Tuesday, reversing some of the previous day’s losses, as tight supply and expectations of a further draw in U.S. crude inventories provided support, although fears over the spreading COVID-19 variant capped gains.
Spot Brent crude oil fell 0.15% to $76.47 per barrel. US West Texas Intermediate crude lost 0.05% to $75.17 a barrel.
The yellow metal higher 0.28% to 1815.10 dollars per ounce.
Market Wrap: Forex
The U.S. dollar touched a three-month high versus the euro and a one-week high versus the yen on Wednesday after heated U.S. inflation spurred bets of faster monetary policy tightening than Federal Reserve officials have so far signaled.
Today, the U.S. dollar index measures the greenback against a trade-weighted basket of six major currencies, lost 0.15% to 92.632.
The Euro US Dollar (EUR/USD) is a widely traded pair that advance 0.18% today. This left the pairing trading around $1.17930.
The Japanese yen rose against the U.S. dollar on Wednesday as the stock pushes higher. Today US/JPY lost 0.16% to 110.420 level.
Another commodity-related currency higher against the U.S dollar, AUD/USD gained 0.29% to 0.74660, and NZD/USD jumped 1.19% to 0.70260.
EUR/USD Intraday: Trend may reverse to upside
Our pivot point is at 1.17765
Preferable Price Action: Take long positions above pivot level with targets at 1.18227 & 1.18570 in extension.
Alternative Price Action: Below pivot looks for a further downside to 1.17290 & 1.16956.
Comment: Pair above its 20MA & 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
GBP/USD Intraday: Support at 1.38174
Our pivot point is at 1.38174
Preferable Price Action: Buy positions above pivot with targets at 1.38654 & 1.38905 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.37753 & 1.37499.
Comment: Price 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
USD/JPY Intraday: Support at 110.272
Our pivot point is at 110.272
Preferable Price Action: Buy position above pivot with the target at 110.716 and 110.963 in extension.
Alternative Price Action: The downside breakout of the pivot would call for 109.896 and 109.661.
Comment: price above its 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: In a consolidation area
Our pivot point is at 0.74416
Preferable Price Action: Buy Positions above pivot with targets at 0.74842 & 0.75060 in extension.
Alternative Price Action: Below pivot looks for a further downside with 0.74090 & 0.73860 as targets.
Comment: Pair 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
CRUDEOIL Intraday: Trend on the upside
Our pivot point is at 73.91
Preferable Price Action: Above pivots buy Oil with 75.36 & 76.14 as targets.
Alternative Price Action: Sell crude below pivot with targets at 72.24 and 71.11 in extension.
Comment: Crude is above its 55MA & 20MA and MACD in the 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: In the consolidation area
Our pivot point is 1807.42
Preferable Price Action: Further upside to 1817.99 & 1823.52.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1797.09 and 1791.86.
Comment: MACD in positive territory and price above it’s 20MA & 50MA.
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 on the upside
Our pivot point is 34,702.00
Preferable Price Action: Take buy positions pivot with targets at 35,056.00 & 35,297.00.
Alternative Price Action: Below 34,702.00 looks for further downside to 34,275.00 & 34,128.00.
Comment: Price below its 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