Market Wrap: Stocks, Bonds, Commodities
American major stock indices rose on Tuesday as the prospect of 1 trillion additional stimulus and a record surge in retail sales suggested the U.S. economy could bounce back sooner than expected.
The Dow Jones Industrial Average higher 2.04% to 26,289.98, the S&P 500 advanced 1.90%, to 3,124.74 and the Nasdaq Composite gained 1.75% to 9,895.87.
US retail sales increased by the most on record in May as economy reopened after two straight months of sharp declines, showing more evidence that the recession occurred by the COVID-19 pandemic was over.
Asia major indices were set to a rose on Wednesday after US market surge in response to upbeat trial results for a COVID-19 treatment and data showing U.S. consumers expense big in May.
MSCI’s index of Asia-Pacific stocks outside Japan higher 0.15% to 645.00 levels. Australian index gain 0.83% to 5,991.80. Japan’s Nikkei slipped 0.57% to 22,452.20
European stocks were higher on Tuesday, with the Stoxx Europe 50 Index surged 3.39% to 3,242.650, Germany’s DAX rose 3.39% to 12,315.66 and France’s CAC gained 2.84% to 4,952.46 and U.K.’s FTSE 100 advance 2.94% to 6,242.79.
Benchmark 10-year U.S. Treasury rose as demand for safe asset grow again, today 10-year bond yield down 2.12% to 0.738.
Crude Oil prices slipped on Wednesday, weighed down by an increase in U.S. crude stockpile and worries about a potential second wave of the coronavirus pandemic.
Spot Brent crude oil lower 1.00% to $40.55 per barrel. US West Texas Intermediate crude futures were fell 1.51% to $37.80 a barrel.
The yellow metal was in a narrow range from last two much. Today, Bullion prices lower 0.10% to $1727.50 per ounce.
Market Wrap: Forex
The dollar was rose on Wednesday, boosted by fears over rising numbers of COVID-19 cases and geopolitical tension.
The Euro US Dollar (EUR/USD) widely traded pair gain 0.15% today. This left the pairing trading around $1.12770. The pound traded flat to 1.25710.
The Japanese yen fell against the U.S. dollar on Wednesday as demand for risky currency rose. Today US/JPY down 0.10% to 107.250.
Other commodity-related currency broadly edged higher against U.S dollar, AUD/USD higher 0.28% to 0.69040 and NZD/USD rose 0.26% to 0.64640.
EUR/USD Intraday: Support at 1.12550
Our pivot point is at 1.12550
Preferable Price Action: Take Long positions above pivot level with targets at 1.13051 & 1.13302 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.12075 & 1.11826.
Comment: Pair above 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: Trend downside
Our pivot point is at 1.26200
Preferable Price Action: Short positions below pivot with targets at 1.25400 & 1.25109 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.27017 & 1.27296.
Comment: Price below 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
USD/JPY Intraday: Temporary pullback
Our pivot point is at 107.150
Preferable Price Action: Long position above pivot with the target at 107.456 and 107.650 in extension.
Alternative Price Action: The downside breakout of pivot would call for 106.829 and 106.633.
Comment: Pair above 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
AUD/USD Intraday: In consolidation zone
Our pivot point is at 0.68700
Preferable Price Action: Long positions above pivot with targets at 0.69406 & 0.69708 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.68024 & 0.67753 as targets.
Comment: MACD in the positive zone 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
CRUDEOIL Intraday: Trend upside
Our pivot point is at 37.40
Preferable Price Action: Buy crude above pivot with targets at 38.80 and 39.61 in extension.
Alternative Price Action: Below pivots sell Oil with 36.01 & 35.20 as targets.
Comment: Bias on the upside for Oil as trend upside.
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 1723
Our pivot point is at 1723.00
Preferable Price Action: Further upside to 1733.22 & 1738.31 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1712.71 and 1707.56.
Comment: RSI above 50 level mark and 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: Strong trend on upside
Our pivot point is at 26050.00
Preferable Price Action: Take buy positions above pivot with targets at 26582.97 & 26832.53 in extension.
Alternative Price Action: Below 26050.00 looks for further downside to 25499.91 & 25238.38.
Comment: Price above 20MA and 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 produced7