Market Wrap: Stocks, Bonds, Commodities
Global shares held firm on Tuesday, with a solid foundation in place to extend their bull run as optimism about the global economic recovery and expectations of low interest rates drive investments into riskier assets.
The Dow Jones Industrial Average rose 229.29 points (0.76%) to 30,211.91, the S&P 500 gained 59.62 points (1.61%) to 3,773.86 and the Nasdaq Composite added 332.70 points (2.55%) to 13,403.39.
Asian shares rallied on Tuesday, setting the stage for world equities to extend their bull run for a 12th consecutive session, as investors banked on a rollout of coronavirus vaccines to keep the global economic recovery on track.
MSCI’s index of Asia-Pacific stocks outside Japan rose 2.10% to 895.33 levels. Australian index advances 0.84% to 6,663.00. Japanese Nikkei traded 1.55% higher to 28,091.10.
European stocks were mixed on Wednesday, with the Stoxx Europe 50 Index lose 0.05% to 3,732.52, Germany’s DAX down 0.10% to 14,096.35 and France’s CAC higher 0.27% to 5,785.25 and U.K.’s FTSE 100 advance 0.27% to 6,776.95.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield rose 2.63% to 1.232.
Oil prices soared to their highest in about 13 months on Monday as vaccine rollouts promised to revive demand and producers kept supply reined in.
Spot Brent crude Oil down 0.10% to $63.27 per barrel. US West Texas Intermediate crude advance 0.72% to $59.91 a barrel.
The yellow metal traded 0.10% higher to 1825.30 dollar per ounce.
Market Wrap: Forex
The U.S. dollar was mired at a three-week low on Tuesday as growing optimism about the outlook of the global economy in the coming months sent investors scurrying to purchase riskier currencies including the euro, crown and the British pound.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, slipped 0.30% to 90.213.
The Euro US Dollar (EUR/USD) widely traded pair gained 0.24% today. This left the pairing trading around $1.21550.
The Japanese yen fell against the U.S. dollar on Tuesday as stock pushes higher. Today US/JPY flat to 105.360 level.
Other commodity related currency higher against U.S dollar, AUD/USD rose 0.12% to 0.77880 and NZD/USD gained 0.45% to 0.72580.
EUR/USD Intraday: Support at 1.21270
Our pivot point is at 1.21270
Preferable Price Action: Take Long positions above pivot level with targets at 1.21550 & 1.21700 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.21000 & 1.20850.
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: Major trend upside
Our pivot point is at 1.39150
Preferable Price Action: Buy positions above pivot with targets at 1.39520 & 1.39750 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.38780 & 1.38550.
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 105.430
Our pivot point is at 105.430
Preferable Price Action: Buy position above with the target at 105.680 and 105.830 in extension.
Alternative Price Action: The downside breakout of pivot would call for 105.160 and 105.000.
Comment: price above 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
AUD/USD Intraday: Trend upside
Our pivot point is at 0.77730
Preferable Price Action: Buy Positions above pivot with targets at 0.78000 & 0.78170 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.77480 & 0.77300 as targets.
Comment: Pair above its 55MA & 20MA an RSI near 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: Bias on the Upside
Our pivot point is at 60.00
Preferable Price Action: Above pivots buy Oil with 60.60 & 61.00 as targets.
Alternative Price Action: Sell crude below pivot with targets at 59.40 and 59.00 in extension.
Comment: Crude above its 20MA & below 55MA 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: In a consolidation zone
Our pivot point is at 1818.90
Preferable Price Action: Further upside to 1829.90 & 1835.70.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1808.00 and 1802.00.
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: Support at 31,620.00
Our pivot point is 31,620.00
Preferable Price Action: Take buy positions above pivot with targets at 31,750.00 & 31,820.00 extension.
Alternative Price Action: Below 31,620.00 looks for further downside to 31,490.00 & 31,420.00.
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