Market Wrap: Stocks, Bonds, Commodities
The S&P 500 closed lower on Tuesday, as investors focused on a report questioning Moderna’s recent coronavirus vaccine early-stage trial results, wiping out modest gains on the benchmark index in the last hour of trading.
The Dow Jones Industrial Average lost 390.60 points (1.60%) to 24,206.90, the S&P 500 slipped 30.97 points (1.07%) to 2,923.10 and the Nasdaq Composite declined 50 points (0.55%) to 9,185.30.
Asia stocks are likely to come under pressure on Wednesday, tracking declines on Wall Street while gold prices were buoyed by safe-haven demand as economic indicators pointed to more signs of recession.
Japanese business confidence slumped to a decade low as the economy entered a recession while Australian retail sales suffered their steepest ever dive in April. British jobless claims are at their highest in 20 years.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.20% to 610 levels. Australian index rose 0.24% to 5,573 and Japanese market higher 0.79% to 20,595.15.
European stocks were mixed on Wednesday, with the Stoxx Europe 50 Index down 0.32% to 2,902.58, Germany’s DAX gained 0.20% to 11,075.29 and France’s CAC slipped 0.89% to 4,458.16 and U.K.’s FTSE 100 declined 0.77% to 6,002.23.
Benchmark 10-year U.S. Treasury rose as demand for safe asset grow again, today 10-year bond yield down 2.97% to 0.690.
Oil prices dipped on Wednesday as concerns over the lasting economic fallout from the coronavirus pandemic outweighed signs of improving demand and production cuts by major oil producers.
Spot Brent crude oil rose 0.30% to $34.74 per barrel. US West Texas Intermediate crude futures were flat to $31.95 a barrel.
Today, gold prices rose 0.35% to $1748.25 per ounce.
Market Wrap: Forex
The dollar rose on Wednesday morning in Asia, but its five-week high was capped by a report casting doubt on a potential vaccine for the COVID-19 virus.
The Euro remained supported in the afterglow of a Franco-German proposal for a common relief fund – a possible way through tensions between European Union members. It inched up to $1.0938.
The Japanese yen rose against the U.S. dollar on Friday as demand for safe currency rose. Today US/JPY rose 0.15% to 107.8000.
Other majors steadied, while the Australian dollar battled, mostly without success, to break out of the ranges that have held them for months.
EUR/USD Intraday: Trend upside
Our pivot point is at 1.09200
Preferable Price Action: Take Long positions above pivot level with targets at 1.09657 & 1.09888 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.08723 & 1.08484.
Comment: pair 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
GBP/USD Intraday: Trend may reverse
Our pivot point is at 1.22750
Preferable Price Action: Short positions below pivot with targets at 1.22065 & 1.21761 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.23343 & 1.23622.
Comment: MACD in the positive zone and pair below 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
JPY/USD Intraday: Bias on the upside
Our pivot point is at 107.650
Preferable Price Action: Long position above pivot with the target at 108.015 and 108.227 in extension.
Alternative Price Action: The downside breakout of pivot would call for 107.267 and 107.049.
Comment: Pair above 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
AUD/USD Intraday: Support at 0.65200
Our pivot point is at 0.65200
Preferable Price Action: Long positions above pivot with targets at 0.65659 & 0.65911 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.64722 & 0.64450 as targets.
Comment: MACD in the negative 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: Support at 31.35
Our pivot point is at 31.35
Preferable Price Action: Buy crude above pivot with targets at 32.60 and 33.26 in extension.
Alternative Price Action: Below pivots sell Oil with 30.11 & 29.42 as targets.
Comment: RSI at 50 levels and price above 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
XAU/USD Intraday: Bias on the upside
Our pivot point is at 1743.00
Preferable Price Action: Further upside to 1756.02 & 1762.64 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1730.10 and 1723.20.
Comment: RSI above 50 level mark and price above 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 may change
Our pivot point is at 24550.00
Preferable Price Action: Take sell positions below pivot with targets at 24078.45 & 23826.61 in extension.
Alternative Price Action: Above 24550.00 looks for further upside to 24987.44 & 25223.54.
Comment: Inde below 20MA & 55MA and also 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 produced7