Market Wrap: Stocks, Bonds, Commodities
Stocks on Wall Street closed near break-even on Friday as investors sold technology shares that have rallied through the pandemic and rotated into cyclical stocks set to benefit from pent-up demand once the coronavirus pandemic is subdued.
Copper rallied above $9,000 a ton for the first time in more than nine years on bets that increased demand driven by the recovery from the pandemic will spur a historic deficit, putting the economic bellwether on course for a record run of monthly gains.
The Dow Jones Industrial Average flat to 31,494.32 and the Nasdaq Composite added 9.11 points (0.07%) to 13,874.46. The S&P 500 dropped 7.26 points (0.19%) to 3,906.71.
Asian share markets inched higher on Monday as expectations for faster economic growth and inflation globally batter bonds and boost commodities, though rising real yields also make equity valuations look more stretched in comparison.
MSCI’s index of Asia-Pacific stocks outside Japan lost 1.40% to 932.20 levels. Australian index down 0.46% to 6,885.20. Japanese Nikkei traded 0.58% lower to 30,292.19.
European stocks were advance on Monday, with the Stoxx Europe 50 Index slipped 0.85% to 3,682.75, Germany’s DAX fell 0.79% to 13,888.40 and France’s CAC lower 0.59% to 5,739.35 and U.K.’s FTSE 100 lost 0.60% to 6,584.71.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield jumped 2.10% to 1.372.
Oil prices rose on Monday as the slow return of US crude output that was cut by frigid conditions raised concerns about supply just as demand is coming back from the depths of the coronavirus pandemic.
Spot Brent crude Oil up 0.90% to $62.70 per barrel. US West Texas Intermediate crude advance 0.81% to $59.75 a barrel.
The yellow metal traded 0.89% higher to 1794.30 dollars per ounce.
Market Wrap: Forex
The U.S. dollar was sold to multi-year lows against sterling and the Australian and New Zealand currencies on Monday, as investors cheered vaccine progress and wagered on the pandemic recovery bringing a global trade boom and an export windfall.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, gained 0.13% to 90.477.
The Euro US Dollar (EUR/USD) widely traded pair slipped 0.10% today. This left the pairing trading around $1.21050.
The Japanese yen fell against the U.S. dollar on Monday as stock pushes higher. Today US/JPY rose 0.36% to 105.810 level.
Other commodity-related currency lower against the U.S dollar, AUD/USD flat to 0.78670 and NZD/USD fell 0.15% to 0.72920.
EUR/USD Intraday: Upside trend
Our pivot point is at 1.21090
Preferable Price Action: Take Long positions above pivot level with targets at 1.21400 & 1.21600 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.20790 & 1.20590.
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: Bias on the upside
Our pivot point is at 1.39990
Preferable Price Action: Buy positions above pivot with targets at 1.40420 & 1.40720 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.39570 & 1.39260.
Comment: Price above its 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
USD/JPY Intraday: Trend May Reverse
Our pivot point is at 105.550
Preferable Price Action: Buy position above with the target at 105.820 and 105.970 in extension.
Alternative Price Action: The downside breakout of pivot would call for 105.280and 105.130.
Comment: price above 55MA & 20MA 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: Support at 0.78620
Our pivot point is at 0.78620
Preferable Price Action: Buy Positions above pivot with targets at 0.79000 & 0.79270 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.78230 & 0.77950 as targets.
Comment: Pair above its 55MA & 20MA an 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
CRUDEOIL Intraday: In consolidation zone
Our pivot point is at 59.55
Preferable Price Action: Above pivots buy Oil with 60.40 & 61.00 as targets.
Alternative Price Action: Sell crude below pivot with targets at 58.70 and 58.10 in extension.
Comment: Crude above it’s 20MA & 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: Break resistance levels
Our pivot point is at 1786.90
Preferable Price Action: Further upside to 1800.00 & 1808.50.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1774.00 and 1765.00.
Comment: MACD in positive territory 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: In consolidation zone
Our pivot point is 31,500.00
Preferable Price Action: Take sell positions below pivot with targets at 31,260.00 & 31,140.00 extension.
Alternative Price Action: Above 31,500.00 looks for further upside to 31,740.00 & 31,860.00.
Comment: Price 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 produced7