Market Wrap: Stocks, Bonds, Commodities
The S&P500 and Nasdaq closed lower on Monday as climbing Treasury yields and prospects of rising inflation triggered valuation concerns, hitting shares of high-flying growth companies.
The Dow Jones Industrial Average ended 27.37 points higher (0.10%) to 31,521.69, the S&P 500 lost 30.21 points (0.77%) to 3,876.5 and the Nasdaq Composite dropped 341.42 points (2.46%) to 13,533.05.
Asian stocks rebounded from two-week lows struck on Tuesday as rising commodity prices boosted market expectations of an improved growth outlook, a day after rising U.S. Treasury yields and inflation prospects hit U.S. tech shares.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.22% to 928.60 levels. Australian index advances 0.86% to 6,839.20. Japanese Nikkei traded 0.46% higher to 30,156.10.
European stocks were mixed on Tuesday, with the Stoxx Europe 50 Index fell 0.45% to 3,683.35, Germany’s DAX down 0.62% to 13,863.10 and France’s CAC higher 0.05% to 5,770.20 and U.K.’s FTSE 100 advance 0.18% to 6,624.18.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield gained 0.23% to 1.372.
Oil prices jumped by more than $1 on Tuesday, underpinned by optimism over COVID-19 vaccine rollouts and lower output as U.S. supplies were slow to return after a deep freeze in Texas shut-in crude production last week.
Spot Brent crude Oil up 1.63% to $65.43 per barrel. US West Texas Intermediate crude advance 1.62% to $62.73 a barrel.
The yellow metal traded 0.05% higher to 1810.20 dollars per ounce.
Market Wrap: Forex
The dollar was largely unchanged in early European trading Tuesday, after earlier falling to a near six-week low ahead of Federal Reserve Chairman Jerome Powell’s semi-annual testimony to Congress.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, gained 0.10% to 90.080.
The Euro US Dollar (EUR/USD) widely traded pair higher 0.05% today. This left the pairing trading around $1.21570.
The Japanese yen fell against the U.S. dollar on Tuesday as stock pushes higher. Today US/JPY rose 0.12% to 105.190 level.
Other commodity-related currency lower against the U.S dollar, AUD/USD flat to 0.79140 and NZD/USD fell 0.10% to 0.73170.
EUR/USD Intraday: Support at 1.21400
Our pivot point is at 1.21400
Preferable Price Action: Take Long positions above pivot level with targets at 1.21700 & 1.21900 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.21100 & 1.20900.
Comment: Pair above its 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 1.40440
Our pivot point is at 1.40440
Preferable Price Action: Buy positions above pivot with targets at 1.41140 & 1.41500 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.39730 & 1.39380.
Comment: Price above its 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: Trend May Reverse
Our pivot point is at 105.000
Preferable Price Action: Buy position above with the target at 105.420 and 105.620 in extension.
Alternative Price Action: The downside breakout of pivot would call for 104.600 and 104.400.
Comment: price above 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: Trend upside
Our pivot point is at 0.78970
Preferable Price Action: Buy Positions above pivot with targets at 0.79350 & 0.79570 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.78590 & 0.78360as targets.
Comment: Pair above its 55MA an RSI near 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 61.75
Preferable Price Action: Above pivots buy Oil with 63.30 & 64.00 as targets.
Alternative Price Action: Sell crude below pivot with targets at 60.20 and 59.50 in extension.
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 resistance levels
Our pivot point is at 1805.60
Preferable Price Action: Further upside to 1807.00 & 1824.50.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1794.00 and 1786.50.
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: Resistance at 31,620.00
Our pivot point is 31,620.00
Preferable Price Action: Take sell positions below pivot with targets at 31,450.00 & 31,350.00 extension.
Alternative Price Action: Above 31,620.00 looks for further upside to 31,800.00 & 31,900.00.
Comment: Price below its 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 produced7