Market Wrap: Stocks, Bonds, Commodities
The S&P500 and the Nasdaq hit new highs on Tuesday with technology leading the charge as Apple, Zoom Video soared, and on the macro front, better-than-expected data on US manufacturing sector data gave optimism about economic recovery.
The Dow Jones Industrial Average was up 215 points (0.76%) to 28,645, the S&P 500 gained 26 points (0.75%) to 3,526 and the Nasdaq Composite added 164 points (1.30%) to 11,939.
Asian shares were trading mostly higher encouraged by buoyant U.S. moves that followed stronger-than-expected manufacturing indicators while the dollar emerged from its recent lows against the euro.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.10% to 735.20 levels. Australian index down 1.77% to 5,953.40. Japanese Nikkei flat to 23,138.10.
European stocks were higher on Wednesday, with the Stoxx Europe 50 Index higher 1.12% to 3,314.65, Germany’s DAX advance 1.27% to 13,138.20 and France’s CAC gain 1.24% to 4,999.30 and U.K.’s FTSE 100 surged 1.43% to 5,946.05.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield rose 2.41% to 0.710.
Crude oil extended gains on Wednesday after a bigger-than-expected draw in U.S. crude stockpiles and as solid U.S. and Chinese factory activity fueled optimism of a recovery from the coronavirus pandemic, boosting investor risk appetite.
Spot Brent crude oil rose 0.81% to $45.95 per barrel. US West Texas Intermediate crude up 0.87% to $43.12 a barrel.
The yellow metal traded 0.66% lower to 1959.30 dollars per ounce.
Market Wrap: Forex
The dollar was on an upward trend on Wednesday in Asia, after the U.S. saw better-than-expected manufacturing data the day before.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, higher 0.24% to 92.555.
The Euro US Dollar (EUR/USD) widely traded pair down 0.27% today. This left the pairing trading around $1.18780.
The Japanese yen fell against the U.S. dollar on Wednesday as stock pushes higher. Today US/JPY advance 0.12% to 106.070 level.
Other commodity-related currency mixed against U.S dollar, AUD/USD down 0.22% to 0.73550 and NZD/USD advancing 0.12% to 0.67650.
EUR/USD Intraday: Trend on the downside
Our pivot point is at 1.19220
Preferable Price Action: Take Short positions below level with targets at 1.18674 & 1.18370 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.19769 & 1.20069.
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
GBP/USD Intraday: Bias on the downside
Our pivot point is at 1.33900
Preferable Price Action: Short positions below pivot with targets at 1.33382 & 1.33002 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.34412 & 1.34788.
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
USD/JPY Intraday: Support at 105.870
Our pivot point is at 105.870
Preferable Price Action: Long position above pivot with the target at 106.300 and 106.551 in extension.
Alternative Price Action: The downside breakout of pivot would call for 105.430 and 105.163.
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
AUD/USD Intraday: Resistance at 0.73760
Our pivot point is at 0.73760
Preferable Price Action: Short positions below pivot with targets at 0.73300 & 0.73004 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.74213 & 0.74497 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: Support at 43.05
Our pivot point is at 43.05
Preferable Price Action: Buy crude above pivot with targets at 43.53 and 43.84 in extension.
Alternative Price Action: Below pivots sell Oil with 42.60 & 42.29 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: Support at 1957.00
Our pivot point is at 1957.00
Preferable Price Action: Further upside to 1974.67 & 1984.36 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1939.04 and 1928.96.
Comment: MACD in negative territory and price above its 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 28580.00
Our pivot point is at 28580.00
Preferable Price Action: Take buy positions above pivot with targets at 28880.00 & 29000.00 in extension.
Alternative Price Action: Below 28580.00 looks for further downside to 28290.00 & 28160.00.
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