Market Wrap: Stocks, Bonds, Commodities
The S&P 500 ended lower on Wednesday, reversing gains late in the day as losses in technology shares outweighed a Federal Reserve statement that it would keep U.S. interest rates near zero for a prolonged period.
The Dow Jones Industrial Average rose 36.78 points (0.13%) to 28,032.38, the S&P 500 lost 15.71 points (0.46%) to 3,385.49 and the Nasdaq Composite dropped 139.86 points (1.25%) to 11,050.47.
Asian shares were set to drift lower on Thursday as concerns about the strength of the recovery from the COVID-19 pandemic remained, even after the U.S. Federal Reserve pledged to hold interest rates near zero until at least 2023.
MSCI’s index of Asia-Pacific stocks outside Japan fell 0.98% to 724.70 levels. Australian index gained 1.04% to 5,956.10. Japanese Nikkei rose 0.10% to 23,475.53.
European stocks were lower on Thursday, with the Stoxx Europe 50 Index fell 1.23% to 3,298.15, Germany’s DAX lost 1.29% to 13,080.85 and France’s CAC loss 0.98% to 5,024.63 and U.K.’s FTSE 100 slipped 0.85% to 6,026.65.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield down 2.14% to 0.672.
Oil prices jumped more than 4% on Wednesday, following a drawdown in U.S. crude and gasoline stockpile and as Hurricane Sally forced a swath of U.S. offshore production to shut down.
Spot Brent crude Oil down 1.11% to $41.77 per barrel. US West Texas Intermediate crude lost 1.25% to $39.66 a barrel.
The yellow metal traded 1.00% lower to 1945.00 dollar per ounce.
Market Wrap: Forex
The dollar gained against major currencies on Thursday following the U.S. Federal Reserve’s upbeat assessment of the economic recovery and as its increased tolerance for higher inflation pushes bond yields higher.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, higher 0.25% to 93.360.
The Euro US Dollar (EUR/USD) widely traded pair down 0.33% today. This left the pairing trading around $1.17730.
The Japanese yen rose against the U.S. dollar on Tuesday as stock pushes lower. Today US/JPY down 0.16% to 104.780 level.
Other commodity-related currency lower against U.S dollar, AUD/USD fell 0.47% to 0.72700 and NZD/USD lost 0.62% to 0.66880.
EUR/USD Intraday: Trend downside
Our pivot point is at 1.17970
Preferable Price Action: Take Short positions below level with targets at 1.17470 & 1.17170 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.18480 & 1.18770.
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 1.29270
Our pivot point is at 1.29270
Preferable Price Action: Long positions above pivot with targets at 1.29830 & 1.30080 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.28690 & 1.28400.
Comment: Price above 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
USD/JPY Intraday: Major trend downside
Our pivot point is at 105.130
Preferable Price Action: Short position below pivot with the target at 104.500 and 104.200 in extension.
Alternative Price Action: The upside breakout of pivot would call for 105.780 and 106.080.
Comment: price below 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
AUD/USD Intraday: Resistance at 0.72910
Our pivot point is at 0.72910
Preferable Price Action: Short positions below pivot with targets at 0.72420 & 0.72130 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.73400 & 0.73690 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: Minor trend on upside
Our pivot point is at 39.25
Preferable Price Action: Buy crude above pivot with targets at 40.25 and 40.65 in extension.
Alternative Price Action: Below pivots sell Oil with 38.25 & 37.80 as targets.
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: Break support level
Our pivot point is at 1949.90
Preferable Price Action: Further downside to 1940.05 & 1935.20 level.
Alternative Price Action: If price gives upside breakout of a pivot, then price extends to 1960.10 and 1965.00.
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: Trend downside
Our pivot point is at 27750.00
Preferable Price Action: Take sell positions below pivot with targets at 27540.00 & 27420.00 in extension.
Alternative Price Action: Above 27750.00 looks for further upside to 27970.00 & 28090.00.
Comment: Price below its 20MA & 55MA and RSI at oversold 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